Per diem
A daily allowance for meals and expenses on the road that drivers can deduct at tax time.
Per diem is a set daily amount for meals and incidental expenses while you are away from home overnight for work. Instead of saving every food receipt, the IRS lets drivers in the transportation industry claim a flat rate for each full day on the road, which simplifies the tax deduction.
For company drivers, per diem can also be part of how pay is structured, where some of the pay is treated as a per diem allowance instead of taxable wages. That changes take-home pay and taxes in ways that are worth understanding before you agree to it.
The rules and the daily rate change, and there are limits on how much of it is deductible, so this is one to confirm with a tax preparer who knows trucking. The idea is simple, but the details are where it pays to get advice.
Related: settlement, owner-operator.