Truckers per
Diem Expenses
Meal, lodging, and other incidental expenses while you
are on the road working are deductible on computing
your taxable income. According to the tax rules, your
lodging is for when you need to stop for sleep or rest
to properly perform your work duties. Meals include
amounts spent for food, beverages, taxes, and related
tips.
While keeping all of the receipts for each expense
is difficult, this method may still produce a higher
tax deduction. But, there is another method that does
not require keeping receipt that is the "Standard
Per Diem Rate" used by trucking company employees.
Using this method you can receive a per diem allowance
from your employer that does not need to be accounted
for with expense receipts for meal, lodging, and other
incidental expenses. For fiscal year 2007 the amounts
are: (i.e., $50 for lodging and $52.00 for meals and
incidentals generally, you can use the "standard
per diem allowance" method as an alternative
to the actual expense method if you receive a per
diem payment while out on the road.
If you’re actual expenses are larger than the
per diem amount that was received, then you can deduct
the excess expenses on form 2106 if you are an employee
of someone else. But if your expenses were less, you
do not need to include the excess reimbursement received
as income in your tax return.
Using the standard per diem rate for your daily expenses
will be much easier because at the end of the year
you do not need to record the per diem payments received
as income. Then you will have the deduction amount
for only any excess expenses for your meals, lodging,
and incidental expenses for tax return filing.
Per Diem Meal Allowances for Owner
Operators
Generally, expenses that you incur when you travel
away from home on business are deductible. You have
a choice of deducting either the actual expenses for
meals and incidentals, which requires that you keep
accurate records and supporting documentation, or
you can use the standard rate set by the IRS. When
you use the standard rate for meal allowances you
must have supporting documentation such as log books.
The IRS provides a special rate for transportation
workers. The special standard meal allowance applies
to people whose work (1) directly involves moving
people or goods by airplane, barge, bus, ship, train
or truck, and (2) regularly requires you to travel
away from home, and during any single trip, usually
involves travel to areas eligible for different standard
meal allowance rates.
This means Owner Operators can claim a standard meal
allowance of $52.00 a day (or $58.00 a day for travel
outside the continental United States) for travel
which occurred between January 1, 2007, and December
31, 2007.
If you choose to use the special rate for any trip,
you must use the special rate for all the trips you
take during that year.
However, the meal expense deduction is subject to
"hours-of-service" limits. In 2007, you
can deduct 75% of either the actual meal expenses
or the per diem allowance. This deduction will increase
in 2008 to 80%.
For most Owner Operators, using the per diem allowance
provides a practical and convenient method to claim
their business travel meal expenses.
The above information was obtained from Publication
463, Travel, Entertainment, Gift, and Car Expenses,
which is available from the Internal Revenue Service
in print and online.
We are always available to answer any tax, accounting,
or operating question that you may have to help you
make and keep more money. Just use our contact
us page on our web site.
Reefer
Fuel Tax Credits and Refunds
Do you operate a
reefer trailer? If so, you are entitled to a tax
credit for all of the fuel that you use to operate
the refrigeration unit. This tax information is
covered in IRS Publication 378. The amount of the
tax credit depends on the quantity and type of fuel
used but will range from .14319 to .244 cents per
gallon. This can amount to hundreds or thousands
of dollars for a year.
This claim for off-highway
business credit tax on fuel requires that you keep
all records needed to prove the fuel purchased during
the period covered by you for the claim. This should
include:
o The date and location
of the purchase.
o The number of gallons.
o The name and address of the person/company that
sold you the fuel.
The fuel tax credit
can be obtained by completing IRS form 4136.
Prior
years Fuel tax claim can be obtained on amended
return.
If you were entitled to this credit
but did not previously take it on your tax return
it's not too late. You can file amended tax credit
claims for the past three years and receive a tax
refund. Generally, you must file an amended return
by the later of 3 years from the date you filed
your original income tax return or within 2 years
from the time you paid the income tax.
If this sound complicated
and you need help, our in-house CPA tax personnel
can help you file for the tax refund. We are always
available to answer any tax, accounting, or operating
question that you may have to help you make and
keep more money. Just e-mail us at: ken@LindowCPA.com or use our contact
us page on our web site.
P.S.
Purchase our tax organizer with instructions and
labels today, it will help you get organized on
the road.
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