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Can A Truck Driver Have Two Tax Homes? A driver claims Nevada as his residence, but his wife resides in Oregon.

"If a driver has two different home addresses, can he claim per diem while off duty at either location?"

Per Diem Plus introduces a weekly tax blog series for the 2023 tax filing season written and hosted by our tax expert, Mark W. Sullivan, EA. The posts are dedicated to simply explaining complex tax and emerging issues to help drivers minimize their income taxes.


Introducing Per Diem Plus Small Fleets, an affordable, customizable per diem solution for solo and team operators

Drivers, try Per Diem Plus or Small Fleets absolutely free for 30 days!

PDP Small Fleets requires users to complete the account setup HERE before using the app.


About Per Diem Plus

Per Diem Plus was born over our 30 years of experience as agents and tax practitioners and a relentless pursuit to introduce efficiency to the time-consuming task of tax compliance for truck drivers, fleets and their accounting professionals. The Per Diem Plus® Fleets enterprise platform enables motor carriers to easily implement an IRS-compliant fleet per diem program in hours that is scalable and data plan-friendly. Per Diem Plus was designed, developed and is managed in the USA and is the only IRS-compliant mobile application that provides automatic trucker per diem for solo and team drivers traveling in the United States and Canada. For more information, contact us at info@perdiemplus.com or visit www.perdiemplus.com

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA



Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2023 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA


2023 State Tax Changes Taking Effective January 1, 2023

Thirty-eight states have noteworthy tax law changes taking effect on January 1, 2023. The good news is that most of the changes are lowering income tax bills for taxpayers. However, the end of temporary gas tax holidays and introduction of new excise and sales taxes will offset the income tax savings for residents in many states.

Individual Income Tax Changes
  • Eleven states are scheduled to lower individual income taxes
Corporate Income Tax Changes
  • Four states are scheduled to lower corporate income taxes
Gas Tax Changes
  • Seven states are scheduled to increase gas taxes

Use the Tax Foundation's interactive state-by-state analysis to explore the tax changes in your state.

2023 State Tax Changes - Tax Foundation



Have a tax question? Contact Mark W. Sullivan, EA or request a free consultation HERE


Try Per Diem Plus free for 30 days - no credit card required!

Available as a $7.99 monthly subscription on Google Play and App Store


About Per Diem Plus

Per Diem Plus is a proprietary mobile software application that was designed by truckers and built by tax pros. It is the only IRS-compliant mobile app for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA



Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2023 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

My dog guards the truck while I sleep, can I claim her as a tax deduction?

"Can I use my dog as a tax deduction" is a common questioned posed to tax professionals by long-haul truckers. Every pet owner claims their animal is a member of the family and they are an essential companion for thousands of truckers. The emergence of the "Emotional Support" registration industry reinforces this fact.

  • Prior to 1987 when the IRS first required dependent Social Security Numbers it was not uncommon for taxpayers to claim their pets as dependents.
  • U.S. pet owners spent an estimated $60 billion in 2015 on their animals.

It understandable that taxpayers may want to recoup some of their pet expenses with a creative medical expense tax deduction[i]. To counter the urge to claim Fido as a tax deduction the IRS has promulgated guidance on what type of animals qualify.

Lily Stefek, aka "Walking Carpet"
Lily Stefek, aka "Walking Carpet"

Tax Law Discussion

A review of IRC § 213 is required to answer the question, "Can I use my dog as a tax deduction?". The costs of buying, training, and maintaining a service animal to assist an individual with mental disabilities may qualify as medical care if the taxpayer can establish that the taxpayer is using the service animal primarily for medical care to alleviate a mental defect or illness and that the taxpayer would not have paid the expenses but for the disease or illness.


IRS Chief Counsel Note: A taxpayer who claims that an expense of a peculiarly personal nature is primarily for medical care must establish that fact. The courts have looked toward objective factors to determine whether an otherwise personal expense is for medical care:

  • the taxpayer’s motive or purpose for making the expenditure,
  • whether a physician has diagnosed a medical condition and recommended the item as treatment or mitigation,
  • linkage between the treatment and the illness, treatment effectiveness, and proximity in time to the onset or recurrence of a disease.
  • Havey v. Commissioner, 12 T.C. 409 (1949).
  • The taxpayer also must establish that the expense would not have been paid “but for” the disease or illness.

A personal expense is not deductible as medical care if the taxpayer would have paid the expense even in the absence of a medical condition. Commissioner v. Jacobs, 62 T.C. 813 (1974). [ii]

How Much of the Expenses Can You Deduct?

You can include in medical expenses:

  • the costs of buying, training, and maintaining a guide dog or other service animal
  • to assist a visually impaired or hearing disabled person, or a person with other physical disabilities.

In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties.


Introducing Per Diem Plus Small Fleets, an affordable, customizable per diem solution for solo and team operators

2024 Trucker Per Diem Rates Published (September 25, 2023)

Flying With A Service Dog? Here's Everything You Need To Know (Becca Bond, The Points Guy, 9/12/23)

What Is The IRS Definition Of A Service Dog?

IRS Orders Immediate Stop To New Employee Retention Credit Claims (IRS Newswire, 9/14/23)


Where To Claim The Deduction?

Generally, you can deduct on Schedule A, Itemized Deductions (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your adjusted gross income (AGI). However, with tax reform drastically increasing the Standard Deduction (2022: $12,950 Single, $25,900 Married) most taxpayers will not have sufficient itemized deductions to warrant pursuing a tax break for their pet expenses.

Example
  • AGI of $50,000
  • You spent $10,000 on service animal expenses
  • 7.5% of $50,000 = $3,750
  • $10,000 - $3,750 = $6,250 deduction for service animal related expenses
  • A business cannot claim a deduction for a guide dog or other service animal

Can You Deduct Expenses For Emotional Support Animals?

No, emotional support, therapy, comfort, or companion animals are not considered service animals under the ADA. These terms are used to describe animals that provide comfort just by being with a person. Because they have not been trained to perform a specific job or task, they do not qualify as service animals under the ADA.

"Prior to January 2021, the law allowed emotional support animals to fly with documentation from a medical doctor verifying the animal was necessary for comforting the passenger. ESAs did not have to be trained. But after rampant abuse of the system that included people taking everything from peacocks to snakes to untrained and aggressive dogs on flights, the DOT revised its regulations to allow airlines to ban ESAs from the skies. Although the ultimate decision was left up to the airlines themselves, all major U.S. and Canadian carriers quickly changed their policies to stop non-ESA pets from flying. You can still fly with a small dog (under 25 pounds), but the pup must be in a carrier and you will need to pay the airline pet fee to fly."

Becca Bond, The Points Guy (9/12/23)

Can A Business Deduct The Expenses Associated With A Guard Dog?

Can I use my dog as a tax deduction if it guards my truck? The absence of specific guidance on guard dogs from IRS compels a taxpayer to evaluate the appropriateness of claiming a tax deduction for expenses related to a guard dog used to protect a truck that is constantly on the move as opposed to a drop-yard or terminal. Kay Bell writing for Bankrate.com provided a great analysis,

That “Beware of dog” sign in your business’s window is no idle threat. Break-ins have stopped since you set up a place for your Rottweiler to stay overnight. In this case, the IRS would likely be amenable to business deduction claims of the animal’s work-related expenses.
Standard business deduction rules still apply, notably that the cost of keeping an animal on work premises is ordinary and necessary in your line of business. Once you show that, the dollars spent each year keeping your pooch in good guard condition — food, vet bills and training — would be deductible as a business expense.
As with all deductions, be prepared to provide full and accurate records of your animal’s hours on the job. You’ll also find your tax claim more acceptable when you demonstrate how the animal protects your livelihood inventory. In addition, as is often the case with business property, the dog must be depreciated, a way of allocating its cost over its useful life for IRS purposes.


Keep in mind, too, that your claims carry more weight when your pet is a breed that’s typically used for such jobs. So even though your Chihuahua has a loud bark, your tax claim is more credible if your guard dog is a German shepherd, Doberman pinscher or a similar imposing breed”.[iv]

Conclusion

Can I use my dog as a tax deduction? Maybe. Every pet owner claims their animal is a member of the family and an essential companion for thousands of long-haul truckers. The IRS disagrees. It understandable that taxpayers may want to recoup some of their pet expenses with a tax deduction, but with the overall value of the deduction is limited due to the 7.5% of AGI offsetting most expenses. Furthermore, extensive rules have been promulgated to insure only qualifying animal expenses can be deducted and taxpayers risk the wrath of the IRS if they get too creative interpreting those regulations.


Need assistance resolving a tax controversy issue? Contact Mark W. Sullivan, EA or request a free consultation HERE


Drivers, try Per Diem Plus absolutely free for 30 days!


About Per Diem Plus

Per Diem Plus was born over our 30 years of experience as agents and tax practitioners and a relentless pursuit to introduce efficiency to the time-consuming task of tax compliance for truck drivers, fleets and their accounting professionals. The Per Diem Plus® Fleets enterprise platform enables motor carriers to easily implement an IRS-compliant fleet per diem program in hours that is scalable and data plan-friendly. Per Diem Plus was designed, developed and is managed in the USA and is the only IRS-compliant mobile application that provides automatic trucker per diem for solo and team drivers traveling in the United States and Canada. For more information, contact us at info@perdiemplus.com or visit www.perdiemplus.com

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA



Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2022-2023 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

[i] 2014 American Pet Producers Association market study

[ii]https://www.irs.gov/pub/irs-wd/10-0129.pdf

[iii]https://www.irs.gov/pub/irs-pdf/p502.pdf

[iv]https://www.bankrate.com/finance/taxes/tax-write-offs-for-pet-owners-1.aspx#slide=3

Blaming your accountant is rarely an effective audit defense

Tax season is just around the corner and the airwaves will soon be awash with ads for tax services fighting for a piece of the $168 billion income tax preparation market.

Three factors to decide whether reliance on a professional was reasonable:

  1. Competency of the professional
  2. Accuracy of information provided
  3. Good faith reliance on the advisor

Per Diem Plus introduces a weekly tax blog series for the 2023 tax filing season written and hosted by our tax expert, Mark W. Sullivan, EA. The posts are dedicated to simply explaining complex tax and emerging issues to help drivers minimize their income taxes.


About Per Diem Plus

Per Diem Plus is a proprietary mobile software application that was designed by truckers and built by tax pros. It is the only IRS-compliant mobile app for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA




Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2022 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

Taking payments for a side hustle via PayPal or Venmo?

According to recent article in the New York Post by Glenn Reynolds a recent tweet says it all.

“Sam Bankman-Fried: I don’t know where $10 billion went. The Pentagon: We don’t know where $2.2 trillion went. The IRS: You just received $601.37 on Venmo don’t forget to report it.”

Per Diem Plus introduces a weekly tax blog series for the 2023 tax filing season written and hosted by our tax expert, Mark W. Sullivan, EA. The posts are dedicated to simply explaining complex tax and emerging issues to help drivers minimize their income taxes.


About Per Diem Plus

Per Diem Plus is a proprietary mobile software application that was designed by truckers and built by tax pros. It is the only IRS-compliant mobile app for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA



Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2022 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

Per Diem Plus introduces weekly tax blog series for 2023 filing season

Per Diem Plus introduces a weekly tax blog series for the 2023 tax filing season written and hosted by our tax expert, Mark W. Sullivan, EA. The posts are dedicated to simply explaining complex tax and emerging issues to help drivers minimize their income taxes. Here is a sampling of the topics to be covered:

  • Team Biden's IRS Comes For Your PayPal And Venmo Payments
  • Pros & Cons: Schedule C or S-Corp Election For Self-Employed Drivers
  • Trucker Per Diem And The 10% Ownership - Related Party Rule
  • Understanding The 20% Passthrough Deduction
  • Are You A Tax Turtle?
  • Can A Truck Driver Have Two Tax Homes?
  • Can I Use My Dog As A Tax Deduction?
  • What Is The IRS Definition Of A Service Animal?

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA




About Per Diem Plus

Per Diem Plus is a proprietary mobile software application that was designed by truckers and built by tax pros. It is the only IRS-compliant mobile app for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.


Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2022 Mark Sullivan Consulting, PLLC; Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

2023 trucker per diem rates released by IRS

2023 trucker per diem rates and tax brackets were released by the IRS in an annual bulletin, Notice 2022-44, on September 26, 2022. For taxpayers in the transportation industry the per diem rate remains unchanged form 2022 to $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS). See section Notice 2022-44


IRS Orders Immediate Stop To New Employee Retention Credit Claims (IRS Newswire, 9/14/23)

IRS Publishes 2024 Trucker Per Diem Rates (September 25, 2023)


2023 Tax Brackets Announced

2023 married filing jointly tax bracket
Married Filing Joint Income Tax Return
2023 Individual tax bracket
Individual Income Tax Return

Per Diem Plus is a Truckstop marketplace partner
Join one of the industry's largest neutral freight marketplaces

Have you noticed Per Diem Plus is suddenly not tracking your trips? The likely cause is location services settings have been changed on your device after software update by Apple or Google. This is an easy issue to fix.

iPhone

  • Open Settings>Privacy>Verify Location Services are ON
  • Select Location Services>Per Diem Plus / Per Diem Plus Fleets
  • Set to "Always Allow"

Android

  • Open Settings>Privacy>Permission Manager
  • Select Location>Per Diem Plus / Per Diem Plus Fleets
  • Set to "Allow all the time

Drivers, try Per Diem Plus or Small Fleets absolutely free for 30 days!

Per Diem Plus Small Fleets requires users to complete the account setup HERE before using the app.


About Per Diem Plus

Per Diem Plus is a proprietary mobile software application that was designed by truckers and built by tax pros. It is the only IRS-compliant mobile app for iOS and Android that automatically tracks each qualifying day of travel in the USA & Canada and replaces ELD backups (logbooks) to substantiate away-from-home travel.

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA


Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Copyright 2022-2023 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®


Make you mark on the future of Per Diem Plus Fleets for Motive beta - become a tester

Help us test and develop features and functionality of our integration with Per Diem Plus Fleets for Motive (Keeptruckin) beta. Per Diem Plus® Fleets API is a configurable, ELD-integrated enterprise platform that automates administration of an IRS-compliant accountable per diem plan for truck drivers and fleet managers.

Truckers designed. Tax pros built it. Your drivers want it. It takes only minutes to start up an IRS-compliant per diem plan with Per Diem Plus Fleets for Motive (Keeptruckin).

Take a deep dive into the benefits of offering per diem, for both your company and drivers.

Benefits:

  • Enhances recruiting and retention by raising driver take-home pay
  • Saves a fleet thousands of dollars per driver annually
  • Automates per diem payroll accounting and tax compliance
  • Eliminates the need to retain ELD backups for 3+ years to substantiate per diem
  • Designed for fleets with 2 - 15,000 trucks

Unlock Fleet Tax Savings Using Per Diem Plus

Although Congress temporarily increased the trucker per diem deduction to 100% for 2021 and 2022, there is a common misconception in the industry that at 80% deductibility per diem will not save a motor carrier money. The below tables prove otherwise.

Assumptions

The following analysis assumes 2,500 average weekly miles / driver; $69 per diem; $75,000 annual driver wages; 255 nights away from home; a 12% effective federal income tax rate, and $10/$100 workers' comp rate.

Per diem payroll tax savings
https://www.perdiemplus.com/unlock-fleet-savings-with-per-diem-amid-economic-uncertainty/

About MOTIVE

Motive builds technology to improve the safety, productivity, and profitability of businesses that power the physical economy. The Motive Automated Operations Platform combines IoT hardware with AI-powered applications to automate vehicle and equipment tracking, driver safety, compliance, maintenance, spend management, and more. Motive serves more than 120,000 businesses, across a wide range of industries including trucking and logistics, construction, oil and gas, food and beverages, field services, agriculture, passenger transit, and delivery. Visit gomotive.com to learn more.

About Per Diem Plus

Per Diem Plus is the leading provider of cloud-based, IRS-compliant trucker per diem software solutions in the transportation industry. Established in 2015,  Per Diem Plus was born over the founders 30 years of individual experience as IRS agents and tax practitioners and a relentless pursuit to introduce efficiency to the time-consuming  task of per diem tax compliance for truckers and fleet managers. For more information, contact us at info@perdiemplus.com or visit www.perdiemplus.com



Unlock Fleet Savings With Per Diem Amid Economic Uncertainty

On Monday, November 21, 2022, Mark W. Sullivan, EA, Tax Counsel for Per Diem Plus hosted a webinar for the American Trucking Association titled, "Unlock Fleet Savings With Per Diem Amid Economic Uncertainty". The following are excerpts from that presentation.

The freight market has experienced steady softening over the past few months while the nationwide average price for a gallon of diesel fuel hovering around $5.36 or about $2.02 more than just one-year ago1. So how can fleets mitigate the exploding cost of fuel and softening freight rates2? Use per diem compliance tech to unlock fleet savings amid economic uncertainty and record inflation.

An automated telematic solution, like Per Diem Plus®, allows motor carriers to rapidly deploy a solution to realize immediate savings, offset pain at the pump and boost driver pay. Additionally, our cloud-based mobile-enabled platform offers flexible Service Plan Options allowing motor carriers to easily implement an IRS-compliant fleet per diem plan that:

  • Can be implemented in a single day
  • Enhances recruiting & retention by raising employee driver take-home pay
  • Saves a motor carrier thousands of dollars annually per driver
  • Automates per diem payroll accounting & tax compliance
  • Eliminates the need to retain ELD backups for 3 years to substantiate per diem

“We are seeing increased inflationary pressures throughout the business," U.S. Xpress CEO Eric Fuller said during a May 5 call. "Wages, both office and driver, are increasing [and] new equipment prices, insurance, maintenance, and fuel expenses are all up. Taken together, the cost of doing business is increasing across our industry.”1

FleetOwner, May 23, 2022

Unlock Fleet Tax Savings Using Per Diem Plus

Although Congress temporarily increased the trucker per diem deduction to 100% for 2021 and 2022, there is a common misconception in the industry that at 80% deductibility per diem will not save a motor carrier money. The below tables prove otherwise.

Assumptions

The following analysis assumes 2,500 average weekly miles / driver; $69 per diem; $65,000 annual driver wages; 255 nights away from home; a 12% effective federal income tax rate, and $10/$100 workers' comp rate.

Use per diem compliance tech to unlock fleet savings amid economic uncertainty.

Workers Compensation Savings From Using Per Diem Plus

Twenty-three states are members of the National Council on Compensation Insurance (NCCI), 39 rely on NCCI regulations. Under NCCI rules a motor carrier paying substantiated per diem under an IRS-accountable plan can exclude up to $69/day of per diem from taxable wages, which provides a significant per driver annual savings to a fleet3.

Use per diem compliance tech to unlock fleet savings amid economic uncertainty.

With growing economic uncertainty and recessionary clouds on the horizon it is not known if Congress will extend the 100% deduction for per diem. However, a motor carrier that implements Per Diem Plus will be in a stronger position to weather the economic storm.

Use per diem compliance tech to unlock fleet savings amid economic uncertainty.

Case Study: 25 Driver Fleet

Use per diem compliance tech to unlock fleet savings amid economic uncertainty.


Driver Tax Savings From Per Diem

As of January 1, 2018, employee drivers can no longer claim per diem as an itemized deduction on their federal income tax return. However, motor carriers can offer per diem to employee drivers to recapture the lost tax savings. The average Married over-the-road driver earning $65,000 annually will save approximately $3,457 in federal income taxes equivalent to $0.03 cents per mile.

Use per diem compliance tech to unlock fleet savings amid economic uncertainty.

The average Single over-the-road driver earning $65,000 annually will save approximately $4,485 in federal income taxes equivalent to $0.04 cents per mile.

Use per diem compliance tech to unlock fleet savings amid economic uncertainty.

Use Per Diem Compliance Tech To Unlock Fleet Savings Amid Economic Uncertainty

GPS-Based Tracking: Per Diem Plus® utilizes telematics to establish IRS-required “time, date and place” substantiation to prove away-from-home travel.


Proven: Drivers have logged millions of miles using Per Diem Plus! Join those that value their time, love to eliminate inefficient paperwork, and want to simplify tax compliance and save money.


Easy Setup: Our IRS-compliant cloud-based ELD-integrated platform and mobile app solutions allow for rapid deployment with minimal investment in IT resources.


Easy to Use: Web services interface that allows non-technical users to manage individual and team drivers.


Scalable: Whether 5 or 15,000 trucks, our secure cloud-based platform will meet the growing needs of your fleet.


Data Plan Friendly: An average driver using our mobile app solution will use less than 50MB per month. 

Per Diem Plus Software Platform

  • ELD-Integrated API
  • Native Android & iOS Mobile App
  • Distribute APK via MDM
  • Deep Link for Transflo Mobile

Per Diem Plus Fleets is also available on the Samsara App Marketplace and Platform Science Marketplace

For more information, contact us at info@perdiemplus.com or visit www.perdiemplus.com


About Per Diem Plus

Per Diem Plus is the leading provider of cloud-based, IRS-compliant trucker per diem software solutions in the transportation industry. Established in 2015,  Per Diem Plus was born over the founders 30 years of experience as IRS agents and tax practitioners and a relentless pursuit to introduce efficiency to the time-consuming  task of per diem tax compliance for truckers and fleet managers. For more information, contact us at info@perdiemplus.com or visit www.perdiemplus.com

About the Author

Mark is tax counsel for Per Diem Plus. With nearly two decades of experience advising trucking companies on per diem issues, Mark was responsible for defining the Per Diem Plus software logic rules that automatically calculates trucker per diem in accordance with IRS regulations. He also previously served as the consulting per diem tax expert for Omnitracs.

In addition to his time working with Per Diem Plus, Mark works in private practice as an Enrolled Agent at Mark Sullivan Consulting, PLLC specializing in federal tax controversy representation and consulting. He also served as the consulting and expert witness for the Federal Defenders Office and private defense counsel in financial crimes cases in multiple federal district courts. Contact Mark W. Sullivan, EA


Copyright 2022 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

1 Kingston, John, "Weekly DOE/EIA diesel price decline is biggest since 2008", Freightwaves, July 25, 2022 LINK

2 Achelpohl, Scott, "Survey points to exodus of small operators - and fuel costs as the culprit", FleetOwner, May 23, 2022 LINK

3 North Carolina allows a $75 exemption for per diem Rule 2-B-2 LINK

Per Diem Plus Cloud-based App is available on the Platform Science catalog and can be integrated with additional tools

SAN DIEGO, CA and CLAYTON, MO, June 7, 2022– Per Diem Plus, the leader in mobile-enabled transportation per diem solutions, and Platform Science, a leading connected vehicle platform, today announced a new collaboration making the Per Diem Plus Fleets mobile app available as part of Platform Science’s industry-leading marketplace of solutions. The Per Diem Plus app enables motor carriers to automate trucker per diem tracking, payroll accounting, administration, and auditing. Platform Science's innovative transportation solutions make it easier for fleets to develop, deploy, and manage mobile devices and applications on commercial vehicles.

“Per Diem Plus adds to our growing number of driver-focused apps that give fleets choice and flexibility, and it represents the type of solution that fleet operators are seeking to increase efficiencies and decrease burdensome tasks for drivers,” said Joe Jumayao, VP of Business Development, Platform Science. “This new collaboration with Per Diem Plus offers fleets another solution to boost productivity and meet compliance requirements. Fleet operators can use this app in conjunction with other tools in the Platform Science catalog, providing the flexibility to tailor their in-cab platform to best fit the fleet’s needs.”

Per Diem Plus utilizes GPS to establish IRS-required “time, date and place” substantiation to prove away-from-home travel for over-the-road truck drivers. It is the only IRS-compliant solution for Special Transportation Industry per diem for solo and team drivers traveling in the USA and Canada.

The benefits of the Per Diem Plus app include:

  • Enhancing recruiting & retention by raising employee driver take-home pay
  • Saving motor carriers thousands of dollars per driver annually
  • Automating per diem payroll accounting & tax compliance
  • Eliminating the need to retain ELD backups to substantiate per diem for 3-plus years

"The Per Diem Plus for Platform Science was developed in response to growing industry demand to build integrations and is a part of our continued strategy to improve business management practices with best-in-class, IRS-compliant per diem solutions", said Donna Sullivan, CEO at Per Diem Plus.




About Platform Science

Platform Science is transforming transportation technology by empowering enterprise fleets with a unified, user-friendly technology platform. Platform Science makes it easy to develop, deploy and manage mobile devices and applications on commercial vehicles, giving fleets an edge in efficiency, flexibility, visibility and productivity. The customizable platform delivers an unlimited canvas to fleets and developers seeking to innovate and create new solutions as customers' needs, businesses and industries evolve. Platform Science was named by Fast Company as one of the World’s Most Innovative Companies for 2022. In 2021, Platform Science was ranked #2 in the FreightTech 25 Awards by industry news leader, FreightWaves. For more information, please visit www.platformscience.com  

About Per Diem Plus

Per Diem Plus was born over our 30 years of individual experience as agents and tax practitioners and a relentless pursuit to introduce efficiency to the time-consuming task of tax compliance for truck drivers, fleets, and their accounting professionals. The Per Diem Plus® Fleets enterprise platform enables motor carriers to easily implement an IRS-compliant fleet per diem program in hours that is scalable and data plan-friendly. Per Diem Plus was designed, developed, and is managed in the USA and is the only IRS-compliant mobile application that provides automatic trucker per diem for solo and team drivers traveling in the United States and Canada. For more information, contact us at info@perdiemplus.com or visit www.perdiemplus.com


Copyright 2022 Per Diem Plus, LLC. Per Diem Plus proprietary software is the trademark of Per Diem Plus, LLC.®

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