Understanding Trucker Per Diem: A Comprehensive Guide for Drivers
Trucker per diem is a vital aspect of the trucking industry, providing drivers with a non-taxable reimbursement to cover their daily expenses while on the road. In this blog, we'll delve into the intricacies of per diem, its benefits, qualifications, and the documentation required to ensure compliance with IRS regulations.
What is Trucker Per Diem? Trucker per diem is a daily non-taxable reimbursement provided to carriers to cover their meals and incidental travel expenses. Calculated in cents per mile, it aims to compensate truck drivers for their expenses incurred during work-related travel.
Qualifications for Per Diem Pay: To qualify for per diem pay, truck drivers typically need to meet certain criteria, including:
Traveling over 50 miles from their home.
Being away from home and requiring sleep to fulfill work requirements.
Special Transportation Industry Per Diem: The Special Transportation Industry per diem differs from standard per diem in several aspects:
Daily allowance covering food and other expenses incurred while on the road overnight.
Nationwide rates revised annually (effective October 1, 2024, rates are $80 a day in the U.S., $86 a day in Canada).
Higher tax-deductible percentage (raised to 80% for employee travel expenses, and in special circumstances, raised to 100%).
Tax Implications: While per diem isn't taxable by the IRS, it's essential to understand its tax implications:
Truck drivers cannot claim per diem as a federal tax deduction.
Self-employed individuals subject to DOT Hours of Service (HOS) regulations and those away from home overnight can claim per diem as a deduction.
Employee drivers subject to HOS and away from home overnight can receive per diem, but it's classified as a non-taxable reimbursement rather than income.
Trucker Per Diem Documentation: While receipts are no longer required for reimbursement, proper documentation is still necessary:
Drivers must substantiate the time, date, and place of expenses.
Documentation can be done through DOT Electronic Logging Devices (ELDs) or specialized software like Per Diem Plus.
Maintain ELD backups for at least three years and Per Diem Plus records for four years, ensuring compliance with IRS regulations.
Trucker per diem plays a crucial role in alleviating the financial burden on drivers while ensuring compliance with IRS regulations. By understanding its qualifications, tax implications, and documentation requirements, drivers can maximize their benefits and streamline their tax processes.
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