How does per diem pay work for truck drivers?

Truck driver per diem pay is an Internal Revenue Service (IRS) reimbursement designed to cover meal and incidental expenses incurred by drivers while they are away from home. It gives drivers more take-home pay because less taxes are withheld.

Does per diem count as wages?

Per diem payments are not considered wages—and are therefore non-taxable—as long as they meet certain conditions. Payment is more than the allowable federal per diem rate. You did not file an expense report with your employer.

How much is per diem per day for truck drivers?

A. The per diem rate for meals is 80% of $66 per day (effective 10-1-19 thru 9-30-2021). The per diem rate for meals in 2019 was 80% of $66 per day. The per diem rate for meals in 2018 was 80% of $63 per day.

Do local truck drivers get per diem?

Trucking companies can still pay their drivers a nontaxable per diem and take a business deduction for it. And owner-operators can continue to take a per diem to the extent they are away from home.

What is the per diem rate for a truck driver?

This is based on the standard per diem rate of $63 a day. Note that there is one important reason you may choose to receive per diem for your expenses. It is because the IRS allows truck drivers to deduct about 80 percent of their total expenses.

Do you have to pay taxes on your per diem?

It is because the IRS allows truck drivers to deduct about 80 percent of their total expenses. And if your company offers you the maximum truckers’ per diem of $63, you will only need to pay taxes on 20 percent of this amount. What Type of Driver Usually Receives Per Diem Pay?

Is there a per diem limit for OTR drivers?

We can define a per diem program as a company plan that enables $66 (maximum) a night away from your home to be disbursed to you if you are an OTR driver. The limit is $71 for drivers outside the continental US. This is opposed to having truckers turn in their receipts for various direct expenses, such as meals and lodging.

When is the best time to take per diem?

If you can easily afford your various road expenses without getting an advance on the wages and you can also wait until the end of every year in order to take per diem pay off your taxes, then you would be better off not taking per diem. In the end, it often boils down to what you prefer as a professional truck driver.