Hubby just called and they just told him that the 50 cents per mile they told him he would be getting is not exactly that. It's 40 cents per mile and then 10 cents per diem.

What does this mean? Any help with this would be greatly appreciated.

Michelle

It usually means that he'll still be getting the .50/ mile. But they'll only be taxing .40/mile. The other .10 will be tax free. But he wont be able to claim the meal exemption on your taxes next year.

will we have to pay the tax on it at the end of the year?

No. You know how truck drivers can deduct like 52.00 a day for meals? This takes the place of that. If a driver is away from home for 250 days a year multiply that by 52 dollars. He can deduct like 13000 dollars from his income for meals. But you only get a percentage of that to deduct. But when you get per Diem pay, if you run 125000 miles a year at .10/mile thats 12500 dollars thats not taxed. Turns out to be a better deal. The numbers here may not be exact but you should have an idea of how it works now. Hope this helps.

Just be careful in stating your income on any loan applications etc....I doubt if lenders will count per deim as salary.

Yeah i agree, income is .40/mile