Swift Per Diem Enrollment

Do you itemize your tax return? If not, how do you use per diem?

 

I’ve been doing some research on this. The good news is that this $63 dollars would be considered a tax free reimbursement so it wouldn’t have to be itemized. You would just report the lower number after per diem as your income. Even better you would still be able to take the personal exemption that was just doubled to $12,000 for singles and $24,000 if married.

You used to have to figure your per diem then take 80% of that number and compare it to the personal exemption and take whichever was more. Under the new plan if you’re out 300 days a year that would be about a $19,000 deduction plus the personal exemption of $12,000 for a total of about $31,000. That’s much more than before, plus less paperwork.

We should get more info when we get closer to tax time.

Source:
Understanding the New Tax Laws & How it Affects Owner Operators & Drivers