What is per diem? A per day travel expense allowance paid to an employee as an expense reimbursement under an accountable per diem plan.

Do I have to spend all the per diem? No. This is the maximum amount the IRS will let you claim on your tax return.

Who can claim trucker per diem?

• Self-employed truckers who are subject to DOT HOS,
• Who travel away from home overnight where sleep or rest is required, and
• Do not start and end a trip at home on the same DOT HOS 14-hour work day.
• Note: As of January 1, 2018 employee (company) drivers can no longer claim per diem on their Form 1040, US Income Tax Return, as an itemized deduction on Schedule A.

What qualifies as a tax home? Where you park your truck. Your regular place of business, or home in a real and substantial sense.

If I live in my truck can I claim per diem? No. A taxpayer who’s constantly in motion is a "tax turtle," or someone with no fixed residence who carries their “home” with them.

Can an Owner Operator claim per diem for lodging? No. Trucker per diem is exclusively for meals and incidental expenses. You must have a receipt for all lodging expenses. A self-employed driver falls under the related party rules of IRC 267(b) & Rev. Proc 2011-47.6.07 and, therefore, cannot use per diem substantiation that includes a meals and lodging per diem.

Information for employee drivers participating in an employer-sponsored per diem program

Is company-paid per diem taxable to an employee driver? No. It is considered a non-taxable reimbursement that is deducted from taxable wages.

• Amounts paid under the per diem plan are tax free, not reportable as wages on Form W-2, and are not subject to income or employment taxes.
• Be aware that the program reallocates your income; the non- taxable reimbursement is not in addition to your base wages.

How will per diem affect my Social Security? The per diem pay plan will reduce social security benefits. However, you still come out ahead because you could save thousands in taxes each year under the per diem program and only lose out on $4 to $11 per month in social security benefits. Speak with a tax advisor for more information about your situation.

What are the typical tax savings to an employee driver receiving per diem? A driver will typically save up several thousand dollars in federal and state taxes equivalent to between 3 - 5 cents per mile.