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

 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.