Discussion in 'The Drivers Lounge' started by nightowl, Dec 20, 2017.
Just a quick glance makes it look like there will be a standard deduction instead of the per Diem, which will be more anyway.
Most OTR drivers fall into a tax bracket that just had a 3% tax cut ($38,700-$82,500).
While standard deductions go up most OTR drivers PER DIEM deductions currently represent half or more of their total deductions and are being completely eliminated.
I did a rough calculation and found that my net taxes are going up by $373. I claim 5 days/week per diem. Those claiming more are likely to be worse off. Those with children likely fare better than me but who knows how it all adds up in the end.
The net effect imo will be that pay will have to go up to compensate for several reasons:
Companies will no longer pay a PER DIEM advance that drivers consider pay.
Drivers cannot claim work tools and supplies on their taxes causing the net cost to the driver to rise, the same goes for meals and entertainment. What effect will that have on the local economy?
What do you think?
I think this is a raw deal for drivers as we incur much higher expenses out on the road while a 9-5 office person that brings their own lunch and gets home every day literally gets the same deduction.
lol Trump is already scoring points with the truckers !
If you can't roll back any of the dot regs Might as well screw them on per diem too