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Ultimate Guide to Per Diem Truck Driver Tax Break 2022

Truck Driver Tax Break

What is Per Diem for Truck Drivers in 2022?

The Per Diem depends on the company you work for and it is bidding for the meals while being on the road. The Per Diem is the daily meal allowance of a certain amount of money per night while you are away on the job. The Per diem is very beneficial because it reduces the hardship of collection of reimbursements and receipts from the drivers.

There are a couple of important things to know regarding the per diem for truck drivers in 2022. This article will help in finding out how the per diem is for truck drivers and how it has changed in accordance with the new per diem tax laws of 2022.

Per Diem for Truck drivers in 2022

The per diem allowance for CMV truck drivers increased by $3 from October 1, 2021. It has increased the daily rate from $66 to $69 for drivers in the continental United States. Therefore, outside of the continental U.S., the rate increased significantly to $74 per day. These per diem rates are effective until September 30, 2022. As a driver, you will get the money upfront as per your needs and it is one of the significant benefits of the Per diem. You can envelop the expenses of the road without any apprehensions of later reimbursements.

There are both pros and cons to receiving the per diem as it tends to decrease taxable income which affects the 401(k) contribution, unemployment benefits, and worker's compensation. Receiving the per diem depends on the per diem program offered by your trucking company. It is based on the number of miles driven in consideration of several other factors. If you are considering a new position, it is important to get reliable information for the qualification of the per diem program.

New Tax Laws For Per Diem 2022

In October 2021, the truckers per diem increased with the addition of a new tax break for the expenses incurred in 2021 and 2022. According to the taxpayer certainty and Disaster Relief Act of 2020, meal purchases from restaurants are now 100% deductible as opposed to the previous 80%. It is very important to note that for the 2021 tax year, the per diem rate was $66 for the first three quarters which shifted to $69 for the last quarter. It is important to take this into consideration when calculating the deduction.

Not only does this tax break deliver simple tax savings for owner-operators, but it also supports making the calculations of deductions much simpler.The need for keeping detailed records is significantly reduced, which means the owner-operator can focus solely on keeping track of the time on the road.

Now that you are aware of the per diem for truck drivers in 2022 as well as the new tax deductions available to owner-operators, you can make the right choice in how to enter the per diem program.


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