Is is better to get per diem pay or straight mileage pay?

by Carol
(Logan, OH)

My husband is a new OTR driver. His company requires new drivers to get per diem pay + mileage for the first 90 days. After that, they can elect to not receive the per diem pay and instead get a $.02 increase in mileage pay.

The payroll department told me that the per diem pay is non-taxable. I'm trying to figure out which is the best way to go to maximize his earnings but minimize the tax repercussions.

Also, I'm not sure if we accept per diem that we can write off OTR expenses. Anyone out there have any comments, suggestions, or advice? Thanks!

If this helps any, he is supposed to average arount 2500 miles per work week. This week he had 3000 miles.

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Oct 10, 2015
go ahead NEW
by: Anonymous

Its been so important for him to stuck with his professional and what he is been doing so far, success will roll and come to you but with some patience. best assignment australia

Sep 27, 2011
money now or money later....
by: Anonymous

Well that all depends on if you have any children, how many children, your average tax bracket and normal expenses. We look at it like this. Per diem means you get that money now, and have a smaller income tax return or possibly having to pay in some or pay it all in now and possibly get a bigger return at the end of the year.

Be advised though that regardless of which you choose, it may be better to take the itemization than a standard deduction. If that is the case, make sure you hang onto EVERY receipt that you get and make sure you get a receipt for EVERYTHING you purchase.

Especially if it is equipment or supplies for the truck. Coolers, refrigerators, microwaves, bedding all of this stuff can be considered a work related expense that you can get credit for.

So pretty much in a general nut shell, do you want more money now, or later?

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