What You Need to Know About 2018 GSA Per Diem Rates
President Trump’s Tax Cuts and Jobs Act enacted back in December 2017 has eliminated the per diem allowance for most industries not only the trucking world. Here is what you need to know about 2018 GSA per diem rates.
What You Need to Know About 2018 GSA Per Diem Rates
The new allowance only enables owner-operators, or self-employed drivers, to receive a standard amount per day to cover meal expenses. Per diem is a reimbursement that allows those eligible to deduct up to 80 percent via sec 1312 of the Tax Cuts and Jobs Act.
2018 GSA Per Diem Rates
|
Work Eligibility
|
Per Diem Rate
|
USD Deduction
|
|
Full Day
|
80%
|
$63 ($68 Outside of US) |
|
Partial Day
|
75%
|
$47.25 ($51 Outside of US) |
GSA Per Diem Overnight Rule
You must record and track expenses! You will not be able to deduct any business-related expenses on future tax returns. It is advisable to keep a record of the following expenses: repairs, tools, motels, etc. to verify they are reimbursed.
Owner-operators must meet Internal Revenue Service (IRS) qualification to claim a per diem tax break. To claim per diem, you must travel far enough that you cannot return in a single day. However, if you are not necessarily required to be away from home the full 24 hours. For instance, a driver on a 10 duty cannot complete a 16-hour trip without a rest stop. The HOS regulations only allow 14-hours on duty without a full 8 hours of sleep.
