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Per Diem Could be Reinstated for Company Drivers

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Per Diem Could be Reinstated for Company Drivers
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Both in the House and Senate, attention has been turned toward restoring the per diem tax deduction for employee truck drivers. The Tax Fairness for Workers Act proposes an above-the-line tax deduction for union dues and expenses, along with reinstating the miscellaneous itemized deduction for unreimbursed costs like travel and uniform expenses related to employee services.

Introduced by Rep. Brendan Boyle, D-Pa., as HR4963 in July of last year and by Sen. Robert Casey Jr. as S738 in March 2023, both bills have garnered substantial support but await final approval. The House iteration boasts 183 co-sponsors, while the Senate has 39.

“These extraneous costs present a challenge to many hardworking individuals who rely on these deductions to offset expenses and pay household bills,” Boyle said. “This legislation will reintroduce those deductions that were taken away several years ago and will ease some of the tax burden pressure currently faced by many middle-class families.”

While benefiting workers across various sectors, the bill notably aids employee truck drivers. The Tax Cuts and Jobs Act of 2017 removed the ability for employee drivers to deduct 80% of up to $63 in daily expenses while on the road, though it didn’t impact owner-operators or leased drivers. The Owner-Operator Independent Drivers Association (OOIDA) advocates reinstating this deduction for company drivers.

“The elimination of the per diem for company drivers has unfortunately increased the tax exposure for many hard-working Americans who make their living behind the wheel of a truck,” said Todd Spencer, OOIDA president.

The bill also has support from the American Federation of Labor and Congress of Industrial Organizations.

 

 

Source: Land Line

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