In fact, a driver who usually gets per diem pay usually takes home almost the same amount of salary as a driver who is not entitled to per diem pay. Irs publication 463 travel expenses for truck drivers. Get per diems 2017 conus per diem rates the department of defence dod sets per diem rates for official travel outside of the continental united states including alaska and hawaii, which is known as oconus travel. Claiming these deductions helps lower your tax liability and helps you recoup some of the money spent during the year for travel.
A selfemployed truck drivers tax home may be at the headquarters where the trucking assignments are given out, even if that is far from where they live. If youre thinking of getting into the trucking industry, you may be wondering how much you will be paid per mile. Truck driver tax planning tips trucking careers of america. This information is published in irs publication 463 and establishes the limits for daily meal deductions that truck drivers can take. Weighing out the pros and cons of being paid per mile as a truck driver shows that there are more positives than negatives. Otr truck drivers travel long hours all over the country and they have to respect road regulations in different states.
These include a per diem for meals, plus accommodations, tolls, and parking. There are almost 400 destinations across the united states for which a special per diem rate has been specified. The per diem rates in lieu of the rates described in section 4. What is the per diem rates for otr truck drivers in oregon. While selfemployed individuals can generally deduct any. After 15 years on the road i wanted to help people understand the trucking industry and everything that came with the career and. Can a driver prorate per diem for partial days of travel. The rates are effective for per diem allowances paid to any employee for lodging, meals, and incidental expenses on or after october 1, 20, for travel away from home on or after that date. Even if youre already in the business, you may want to find out if your pay rate is fair, or below average. The irs has announced per diem rates for truck drivers and other transportation workers.
Please explain per diem tax deduction for otr truck drivers for 9 months this past year, i drove semis around the country. Truck drivers per diem for 2018 filing taxes for truckers. Start quote special rate for transportation workers. Anything you do to keep the truck rolling, fuel, oil, repairs, truck insurance, tires, tolls, cb its a safety tool you can deduct. The perdiem amount you will be issued for meals and lodging depends on the location to which you are traveling. Truck drivers per diem for 2018 in december 2017, president trump signed the tax cuts and jobs act into law. The deductible portion of food or beverage expenses gradually increases for individuals during, or. Whether you were a company driver or owneroperator, you could. Drivers being paid per mile do tend to make more than hourly or salary paid drivers. Selfemployed truck drivers may also deduct 80% of the special standard meal allowance rate or their actual expenses. Per diem plus will record 34 per diem when a driver departs their tax home before noon or returns to their tax home after noon.
The per diem deduction primarily compensates you for the cost of meals on the road. For more information regarding the standard meal allowance, please refer to the u. The per diem amount you will be issued for meals and lodging depends on the location to which you are traveling. Per diem from a trucker s employer simply reimburses the driver for his or her meals.
For truck drivers, the irs allows you to claim a per diem meal expense for. Irs updates special per diem rates for 202014 travel expenses. I was employed by a company i am not an owneroperator, they paid me weekly, but gave me no food allowance while on the road. There is a special per diem rate for transportation workers. Perdiem rate for truckers, owneroperator independent drivers.
The irs has announced the special per diem rates for 201415 that. Most otr truck drivers are home only 34 days a month. There are almost 400 destinations across the united states for which a special perdiem rate has been specified. Can someone tell me the 2016 irs per diem daily rate and make it clear if you are stating the 100% amount or the 80% amount. It provides information on accurate recordkeeping, and how to report travel expenses the proper use of per diem rates with regard to deducting meals and incidental. Perdiem rate for truckers, owneroperator independent. Truckers tax tips and tax deductions for truck drivers. If you are an employee driver, you are not eligible for per diem. Please explain per diem tax deduction for otr truck.
Irs sets per diem rates for 202014 travel expenses. Trust us, after your first year on the road you will quickly appreciate how much truck driver tax deductions can help your bottom line. At melton, your starting pay is based on your verifiable over the road otr experience. Getting home every night does not qualify you for this per diem. If you choose to use the special rate for any trip, you must use the special rate and not use. Melton flatbed truck driver base pay meltons base pay scale.
Otr drivers can go back home anywhere from a couple of times a week to once every 48 weeks, depending on the job. Before its inception, trucking tax experts predicted that the tax overhaul would eliminate the per diem allowance for truckers that receive a w2 in 2018. Understanding per diem pay for truck drivers cdl knowledge. Choose any colored region for the current per diem rates applicable in that area. The irs allows selfemployed drivers and owneroperators to deduct certain costs under the category of travel expenses. Melton flatbed truck driver base pay melton truck lines. I do not own my own truck, i am a company driver with a company truck. A sliding scale for longer runs is the most efficient way to lower your tax burden while still maximizing your earning potential per hour. One way that truck drivers can offset some of their earnings and receive a tax deduction is to use the per diem allowance established by the internal revenue service. General services administration gsa website per diem rates. Truck drivers should keep in mind that per diem pay is simply reimbursement for incidental expenses incurred on the job and nothing else. Keep all your food receipts and deduct 80% of your total expenses. Note that travel to alaska and hawaii are not covered by conus per diem rates instead, per diems are specified in the oconus outside continental united states rate tables. For a full schedule of per diem rates by destination broken down here by county, click on any of the states below.
Can a truck driver employed by a company claim a per diem. Find current rates in the continental united states conus rates by searching below with city and state or zip code, or by clicking on the map, or use the new per diem tool to calculate trip allowances. Being able to understand how to use this tax deduction properly can significantly reduce your income tax liability. Taxes and deductions that may be considered ordinary and. For years, truck drivers have collected a per diem for meals when on the road. One way that truck drivers can offset some of their earnings and receive a tax. Irs meal allowance for truck drivers in the united states.
A per diem is a rate given to employees or contractors to cover the daily expense of meals, lodging or another item. Truck driver 11 tanker driver 9 company driver 5 driver manager 4 see more. Rates are set by fiscal year, effective october 1 each year. Over the road drivers who are away from home for days at a time can claim a standard meal deduction on their taxes. Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.
Truck driver per diem tax break landstar independent. The ability to earn more per year as a paid per mile driver is. Turbotax has your taxes covered during coronavirus. The most notable change when becoming a truck driver is that you are constantly away from home and have to purchase all your meals on the road. Receiving per diem pay means that a truck driver cannot take the standard meal deduction when filing their yearly income taxes. Being a truck driver, especially for new over the road drivers, can be like learning a whole new way of life. Might sound like a lot to some folks but you have to consider how many hours you typically put in per week at least 70 if you are long haul. The notice provides the transportation industry meal and incidental expenses rates, the rate for the incidentalexpensesonly deduction, and the. Truck driver tax deductions may include any expenses that are ordinary and necessary to the business of being a truck driver. What is the max amount that can be claimed on truck driver meals. For travel to any other areas within the united states, the fy 20 general per diem rates are used. For truck drivers to have their per diem pay to be prepaid and not be taxed by. Truck driver per diem tax break the trucker per diem tax deduction is one of the largest tax deductions available for truck drivers. Think of 2 lists, one for the truck and one for the driver.
No matter the case, its important to remember that the. Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. They will pay you back but it takes so long and the process is just ridiculous. Irs publication 463 contains the rules and regulations for deducting business travel, entertainment, gift, and car expenses. What is the standard deduction for otr truck drivers for. The government actually publishes different rates for different locations within the united states. Over the road, or otr, truck drivers earn a higher salary too. Truck driver per diem prodigy financial services group.
Keep track of the days you were on the road and take 80% of the per diem rate for each day. They pay you per diem but its not actually per diem. For truck drivers, irs publication 463 is likely the most cited tax publication that the irs has published. Once you become a part of the melton truck lines team, you will receive raises based on your accumulated months of otr experience until you drive 120,000 miles with melton.