What is the Per Diem for Truck Drivers in 2022?
Depending on what company you work for, you may receive a per diem for your meals while on the road. So what exactly is a per diem? It allows a company to offer a certain amount of money per night that you are away – or in other words, a daily meal allowance. This is beneficial as it reduces the administrative burden of collecting receipts and reimbursing drivers that way.
If you’re currently a driver or on your way to becoming one, there are a couple important things to know regarding the per diem for truck drivers in 2022. Read on to find out how the per diem for truck drivers has changed as well as new tax laws for truck drivers in 2022.
2022 Truck Driver Per Diem
As of October 1, 2021, the per diem for truck drivers increased $3. This takes the daily rate from $66 to $69 for drivers within the continental United States. Outside of the continental U.S., the rate increased to $74 per day. These per diem rates are effective until September 30, 2022.
One of the main benefits of a per diem is that you get the money upfront when you need it. You can cover your expenses on the road without having to worry about getting reimbursed later. It is also important to note that receiving per diem tends to decrease your taxable income, which can affect your 401(k) contribution, unemployment benefits, and worker’s comp, so there are certainly pros and cons.
Your eligibility for qualifying to receive per diem may depend on the per diem program that your company offers. In some cases, this may be based off the number of miles driven in addition to a variety of other factors. If you’re considering a new position, be sure to get information on the company’s per diem program and what it takes to qualify.
New Tax Laws
In addition to the increase in truckers’ per diem that took effect in October 2021, there is also a new tax break to be aware of for expenses incurred in 2021 and 2022. Based on the Taxpayer Certainty and Disaster Relief Act of 2020, meal purchases from restaurants are now 100% deductible as opposed to the 80% previously.
It’s important to note that for the 2021 tax year, the per diem rate was $66 for the first 3 quarters of the year and then shifts to $69 for the last quarter. Just be sure to take that into consideration when calculating your deduction.
Not only does this tax break deliver tax savings for owner-operators, it also helps to make calculating these deductions much simpler. In fact, it reduces the need to keep as detailed of records, meaning the owner-operator can solely focus on keeping track of the time on the road.
Now that you know the per diem for truck drivers in 2022 as well as the new tax deductions available to owner-operators, you can make the right choice for you as to whether you enter a per diem program. If you’re undecided at this point, it’s definitely worth your while to find a company that at least offers one.
If you’re looking to enter the trucking industry and need to get your CDL, check out our truck driving school and request a session today!