Negosentro | What is per diem for truck drivers in 2022? | Some companies practice paying their truck drivers per diem for meals on the road. What do per diem payments mean? They allow the company to offer the driver a certain amount of money for each night he or she is absent. In other words, it’s a per diem for meals. This is quite beneficial because It reduces the administrative burden related to receipt collection and driver reimbursement.
Like all companies that care about the overall health and well-being of the driver, HMD Trucking offers a per diem to its employees.
If you’re already working as a truck driver or are just about to start your career in the trucking industry, you could use some pretty important things to know about per diem for truck drivers in 2022.
So, how much per diem work for truck drivers? Let’s take a look.
When you are on the way, you incur many expenses, such as food and lodging. The trucking company reimburses you for these expenses as part of your following paycheck. Per diem is basically a certain amount, but in different cases, it can also be dependent on the miles traveled.
Since you paid your traveling expenses out of pocket, the per diem becomes not taxable income. This helps you to deduct them from your gross income when you file your tax return. As a result, you get lower taxes or larger tax refunds.
What are the requirements for the per diem tax credit?
You are not required by the IRS to keep receipts for travel expenses as evidence. Instead, the IRS sets limits on your eligibility for the deduction. According to IRS Publication 463, a truck driver has to meet the following criteria to be allowed per diem tax deductions:
- You are far from home much longer than a regular workday.
- Your job requires that you find accommodation outside the home.
Per diem rate in 2022
On October 1, 2021, the per diem rate for truckers increased by $3. That is, the per diem rate for drivers within the continental US is now $69 instead of $66. The rate increases to $74 per day outside the continental US. Such per diem rate values are valid through September 30, 2022.
The most important benefit of per diem rates is that you get the money upfront when you need it. You can spend it on your travel expenses without having to worry about being reimbursed much later. It’s also worth noting that receiving a per diem reduces your taxable income, which will affect your 401(k) contributions, unemployment benefits, and workers’ compensation benefits, so there are two sides to that.
Your eligibility for per diem depends on the per diem program offered by your company. Sometimes it can be based on the number of miles traveled in addition to a number of other factors. If you are looking for a new job, make sure you have information beforehand about your company’s per diem program and what you need to do to qualify for a per diem.
New tax laws
In addition to the good news about the trucker per diem increase that went into effect in October 2021, for expenses incurred in 2021 and 2022 be aware of a new tax credit. Under the Taxpayer and Disaster Relief Act of 2020, meal expenses are now deductible at 100%, compared to 80% previously.
This tax credit allows owner-operators to save on taxes, and it also greatly simplifies the calculation of those deductions themselves. In fact, it reduces the need to keep such detailed records, which means that owner-operators can concentrate solely on accounting for their own time spent on the road.
Now, you know the current per diem amount for truckers as well as the new tax deductions offered to owner-operators. This will help you to choose whether you need a per diem program.