Being an OTR Truck Driver is a grueling and dangerous job, but there are a few perks. One term that often pops up in the trucking industry is “per diem.” But, what is truck driver per diem and how it can make your life on the road a bit easier?
How Much is Trucking Per Diem?
Quick note, truck driver per diem 2024 has changed mid year. See the notes below:
Full Day Trucking Per Diem 2024, January 1st through September 30th (also the same as truck driver per diem 2023):
- $69 for travel in the USA / deductible at 80% ($55.20)
- $74 for travel in Canada / deductible at 80% ($59.20)
Partial Day Truck Driver Per Diem is 3/4 of Full Day
- USA $51.75 / deductible at 80% ($41.40)
- Canada $55.50 / deductible at 80% ($44.40)
As of October 1, 2024, per diem rates for truck drivers increased to:
- $80 for travel in the USA / deductible at 80% ($64.00)
- $86 for travel in Canada / deductible at 80% ($68.80)
Partial Day Truck Driver Per Diem is 3/4 of Full Day
- USA $60 / deductible at 80% ($48.00)
- Canada $64.50 / deductible at 80% ($51.60)
How Do Truck Drivers Qualify for Per Diem?
Per diem for truck drivers is relatively straightforward. To be eligible, you generally need to be away from your tax home for a full or partial day. A partial day is when a driver departs their tax home AFTER noon or returns to their tax home BEFORE noon. You cannot collect per diem on a day you start and end your work at home.
Your employer typically handles the paperwork, but it’s always a good idea to keep your own records just in case.
The Benefits of Trucking Per Diem
Per diem is a Latin term meaning “per day.” In the trucking industry, it refers to a daily non-taxable reimbursement provided to drivers to cover meals, travel expenses and incidental expenses while they are on the road.
Tax Advantages
One of the biggest perks of per diem in trucking is the tax advantage. Since per diem is considered a reimbursement for expenses, it’s not subject to income tax. This means you can keep more of your hard-earned money in your pocket rather than handing it over to Uncle Sam.
Simplified Record-Keeping
Another benefit is simplified record-keeping. Instead of saving every single receipt for meals and incidental expenses, you can rely on the truck driver per diem rate. This makes it easier to manage your finances and reduces the paperwork you need to deal with come tax season.
Owner Operator versus Company Driver
Owner operators are pretty straightforward in terms of applying per diem. You track your full and partial days on the road and then take a tax deduction for those days. A tax professional can help in tracking and applying per diem.
Quick Trucking Tip – ATBS offers Tax, Accounting and Consulting Services specifically for Truckers, including a per diem tracker.
Company Drivers on the other hand need to rely on trucking companies offering a per diem program. This will vary from company to company and often times is something you opt in to. For example, a company might offer $0.50 cpm or $0.45 cpm + $0.05 cpm per diem. The advantage is that you will see the tax savings on each pay check instead of waiting till your quarterly tax filing.
Conclusion
Per diem can be a game-changer for truck drivers, offering both financial and practical benefits. By understanding how it works and making the most of it, you can enjoy a more comfortable and financially stable life on the road. So next time you’re heading out on a long haul OTR, remember the power of per diem and how it can work for you.
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