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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump's tax plan strips a key exemption for dining & living expenses for truckers while on the road
@MotherJones
Trump's tax overhaul hit American truck drivers hard by stripping a key exemption for dining and living expenses while on the road.
Now, millions of long-haul drivers are finding themselves slapped with massive and unexpected tax bills.
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dalton99a
(81,635 posts)This was the best tax bill Ive ever seen for owner-operators, says Rutherford, who says that beyond their continuing access to the per diem exemption, they also reap benefits from the laws new 20 percent deduction for pass-through businesses. The provision means their profits, instead of being taxed as corporate income, are taxed at a lower personal rate.
I wish Congress had been aware of the unfairness of the fact that they are padding the pockets of the owner-operators, but they are taking money away from the company drivers, says Bridges.
soryang
(3,299 posts)They weren't paid enough per mile to recoup their expenses. Any adverse tax treatment would put them under, they were so marginal anyway. Especially, those who bought into the "lease to own" racket.
I haven't driven in three years so I could be out of date. The owner operators I knew who did do well, were older experienced drivers, in a niche business, with an older rig, already paid off, and moving some specialized cargo for a company or companies with specialized transportation needs. These drivers made money.
Losing per diem deductions would have hurt me a lot tax wise as a company (employee) driver, so I'm glad I no longer drive.
A HERETIC I AM
(24,380 posts)The Per Diem Allowance for transportation workers subject to hours of service regulations.
In 2017 that was $63 for every day away from home, and 3/4 of that for the days leaving and the days returning. So if I had a 3 day trip, I could deduct $47.25 for the day I left, $63 for the next day and another $47.25 for the day I returned.
In 17 it amounted to $14,000 or so for me, with all the multi-day trips I do regularly.
I think it was 80% of that total that was taken off my gross, so it reduced my AGI and therefore my tax burden significantly.