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Per diem will be 100% deductible for income tax purposes!

Big news! The IRS announced that per diem will be 100% deductible for income tax purposes.

The IRS announced in n-21-63 that per diem will be 100% deductible for income tax purposes. For trucking, it had been only 80% deductable and for others, it was less than that. This can be a significant additional deduction when getting your taxes done. 

 For example, a driver out 260 days (52 weeks 5 days a week) at the current rate of $69.00 per day and the old rate of $66.00 (January 2021 – September 2021) would have made $3,474 in per diem.

In previous years the trucking company would not have been able to deduct the full $3,474.00 of per diem it paid to the driver.  Now that money is fully tax deductible.

This will help trucking companies and owner-operators alike. For an owner-operator, they may save on both income and self-employment tax depending on how they are set up. 

The notice applies to both 2021 and 2022 tax returns. 

Read more about per diem here →

Do you have questions or comments about this notice or per diem in general?  Our mission is to help trucking families.  Please reach out through the box below and we will be happy to talk with you about it.

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Meet the team, Mike Ritzema, founder and president of superior trucking payroll services

Written by Mike Ritzema

With over 20 years of experience in entrepreneurship, management, business planning, financial analysis, software engineering, operations, and decision analysis, Mike has the breadth and depth of experience needed to quickly understand entrepreneurs’ businesses and craft the most suitable solutions.

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