WASHINGTON — The Internal Revenue Service (IRS) has announced it will increase the allowable per diem rate for owner-operators from $66 to $69 beginning Oct. 1.
Truck driver per diem pay is an IRS reimbursement designed to cover meal and incidental expenses incurred by drivers while they are away from home. It gives drivers more take-home pay because less taxes are withheld.
While self-employed individuals can generally deduct any expenses incurred to earn their income, company drivers are limited to non-reimbursed expenses required by their employer.
For every day of work, owner-operators can deduct $55.22 from their income. Even though the rate will be $69, the IRS only allows 80% of that amount to be deducted.
The per diem rate for owner-operators has been $66 since Oct. 1, 2018, when the IRS increased the rate from $63.
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