Depending on your business, you can be paid for your meals while traveling. What is a per diem, then? It enables an organization to provide a certain sum of money every night you are gone or, to put it another way, a daily meal allowance. This is advantageous since it lessens the administrative work involved in gathering receipts and paying drivers in this manner.
There are a few crucial things to know about the per diem for truck drivers in 2022, whether you are a driver today or want to become one. Continue reading to learn about changes to truck drivers’ tax legislation for 2022 and the per diem for drivers.
Truck Driver Per Diem in 2022
The truck driver per diem will rise by $3 beginning on October 1, 2021. As a result, the daily cost for drivers in the contiguous United States increases from $66 to $69 per day. The price jumped to $74 per day outside the contiguous United States. The per diem prices shown above are valid until September 30, 2022.
You get the money upfront when you need it, which is one of the key advantages of a per diem. Without being concerned about being paid later, you may pay for your traveling costs. There are undoubtedly advantages and disadvantages to collecting per diem. Still, it is also crucial to keep in mind that it tends to lower your taxable income, which may impact your 401(k) contribution, unemployment benefits, and worker’s compensation.
Your employer’s per diem program may determine whether you qualify for reimbursement. This may, in certain situations, depend on the distance traveled and several other variables. If you are considering a new job, learn about the firm’s per diem program and the requirements for enrollment.
New Tax Laws
Along with the increased tax break for costs spent in 2021 and 2022, there was a rise in the truckers’ per diem that went into effect in October 2021. The Taxpayer Certainty & Disaster Relief Act of 2020 changed the deduction for meals purchased from restaurants from 80% to 100%.
It is vital to remember that the per diem rate for the 2021 tax year was $66 for the first three quarters of the year before changing to $69 for the final quarter. Just be careful to account for it when figuring out your deduction.
Owner-operators may save money on taxes thanks to this tax benefit, making it much easier to figure out these deductions. It lessens the need for meticulous record-keeping, allowing the owner-operator to concentrate entirely on keeping track of the driving time.
Now that you know the higher tax deductions for owner-operators and the per diem for truck drivers in 2022, you can determine if participating in a per diem program is the best course of action. Finding a firm that at least provides one is probably worthwhile if you are still unsure.
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