2019 Per Diem Rates and You
As many of you know, last October the transportation workers’ standard per diem rates were increased to $66 from $63 in the US and from $68 to $71 for those traveling to Canada. Or to get technical, the US per diem went up to $66 per day, or a net of $52.80, and the partial rate is 75% of the full rate.
So, $66.00 x 75% = $49.50 gross or $39.60 net.
But what does that actually mean for you as an owner-operator?
What You Need for Per Diem Tax Deductions
Generally, any worker who is self-employed, contracted, or subcontracted can claim per diem deductions. In the trucking business, this applies to owner-operator truck drivers
that are self-employed, operate under a 1099 Form,
or don’t receive a W-2 Form
from an employer. If you’re an owner-operator, you can take these GSA per diem deductions by meeting the following conditions:
- Keep your tax deductions recorded and itemized.
- Remain compliant with DOT Hours of Service regulations.
- Have a “tax home”: a business or home to park your rig when off duty.
- Provide evidence that you traveled for business on the days with a claimed per diem allowance.
- Keep receipts for work expenses your employer does not reimburse, such as wiper fluid, uniforms, gloves, maps, and more.
- Meet the overnight trucking rule by logging any hours spent sleeping in your truck. You must also be far enough away from home base that you cannot return in 24 hours.
Carpe Diem with TruckLogics!
TruckLogics makes keeping track of your per diem expenses easier than ever! Many carriers only store their electronic data for a limited time. And if you try to go at it alone, there’s also the risk of computer viruses, damaged equipment, or other unforeseen setbacks. These problems can cost you thousands if your return triggers an audit and if you cannot produce the logs.
But with TruckLogics, the leased operator version of the mobile app lets you easily log your per diem deductions and even a partial per diem deduction if needed. These new per diem rates are in effect until Sept. 30, 2019, so it’s important to stay up to date with all of your expenses and other tax information. Luckily, TruckLogics is here to help!
We can also help with your IRS Form 2290, Form 1099, Form W-2, and more!