Truck Driving and Tax deductions????

[River Sussex]

My husband is a newbie, out training right now. He is working a company and NOT an independant.

He is being told that he can deduct $57.00 dollar each day he works (without receipts) and then he should keep all receipts so we can itemize these expenses.

I am wondering, is he though by the IRS to be a business owner of some kind? What type of deductions do you seasoned drivers take?

[roadhazard]

I would imagine the 57.00 is for daily meal expenses. At the time you do your taxes you can add every day worked x 57.00 (if that is the correct amount) and the I.R.S. will give you a percentage of said total to add to your total deductions.

[River Sussex]

I don't understand per deim but I know it isn't good. He choose NOT to do per diem but does this sound like a per diem rate (57.00) or is there a daily rate you can deduct when your not per diem?

[JLKKLJ777]

I believe the IRS has capped the per diem rate to 52.00 per day with travel within the United States and 58.00 per day when traveling outside the US. (The only catch to this is for this year you are only allowed to deduct 75% of that standard meal allowance. It will go to a maximum of 80% of 52.00 per day in fiscal year 2008). This is the figure you would enter when it comes time to file your tax return in the spring. Multiply the number of days your driver was away from home (overnight) by 52.00 per day then multiply that by 75%. This will be your total expenses allowed for the year. You will use your logbook as proof of your travel expenses rather than actual receipts.Important note though is you must be away from home and have "duplicated" your expenses. In essence what that means is if your driver is home each day he will be disallowed the deduction. If he returns after a couple of days the partial day would be pro-rated by dividing the day into 4 6 hour increments. The meal allowance is intended for drivers that do not have access to the refrigerator and food supplies already purchased at home. This is why they call it "duplicating expenses." the other key is you must actually have a home to qualify for this deduction. Meaning you pay rent/mortgage taxes, utilities, etc. Some companies offer a "per diem" allowance to give their drivers more "take home" pay. The companies do this so they will not have to pay taxes (federal, state, local,social security etc) on this amount. By doing that the companies have taken away the drivers claim to those expenses and the company gets those deductions instead. For Companies that pay the driver a set amount each day the driver must track this carefully because if he receives more "untaxed pay" than he actually qualified for then he will have to report this amount as additional earnings on his tax return and will consequently owe money to the IRS. As you can see this is a tricky topic and not for the faint of heart. My suggestion is this: 1. Do not accept per diem pay from an employer. and 2. Have your taxes prepared by a reputable accountant preferrably 1 who specializes in truck driver returns and is aware of the legitimate deductions and how to qualify for them.

[River Sussex]

Thank you that answers my question. Mayber I am wrong and it was 52.00 per day. Now I need to find an accountant who specializes in truck drivers - that is going to be a challenge in my neck of the

[IR CookieMonster]

You can also deduct CB equipment, XM . Your work uniforms and work boots . Your union dues if applicable. Also your cell phone cost.am i missing anything ?