WASHINGTON — The Internal Revenue Service (IRS) has announced it will increase the allowable per diem rate for owner-operators from $66 to $69 beginning Oct. 1.
Truck driver per diem pay is an IRS reimbursement designed to cover meal and incidental expenses incurred by drivers while they are away from home. It gives drivers more take-home pay because less taxes are withheld.
While self-employed individuals can generally deduct any expenses incurred to earn their income, company drivers are limited to non-reimbursed expenses required by their employer.
For every day of work, owner-operators can deduct $55.22 from their income. Even though the rate will be $69, the IRS only allows 80% of that amount to be deducted.
The per diem rate for owner-operators has been $66 since Oct. 1, 2018, when the IRS increased the rate from $63.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
What is the meaning of this “governese” gobblygook phrase? As a company driver, I too have to eat, supply my own clothing, tools and supplies. My company feeds the truck they let me use. I’m not getting any per diem to cover my needs when I’m away from home.
“While self-employed individuals can generally deduct any expenses incurred to earn their income, company drivers are limited to non-reimbursed expenses required by their employer.”
There are plenty of trucking companies that DO allow you $50 – 60 a day to you, out of your pay, as per diem, to cover your expenses… and you do not get taxed on that per diem. example: 50 a day to you for 7 days = $350. You would have earned $2,000 in those 7 days. Now you will only be taxed for $2,000 – $350 = $1,650 taxable income … I’m guessing it might save you $3,000+, in cash a year. You know your taxes better then me, so you do the math.
Stay safe
Bob in South Texas