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April 16, 2025
Question

Per deim

  • April 16, 2025
  • 1 reply
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When you have a gross income of 70000 for year, and your company provides 20000 in a per deim. What is seen on my w2  50000 or 70000? I am a otr driver 

    1 reply

    April 16, 2025

    For an OTR (Over-the-Road) driver, your W-2 will show your gross income as $70,000

     

    The per diem amount provided by your company, if it's part of an accountable plan, is not included in your taxable income. Therefore, your W-2 may reflect the full $70,000, not $50,000.

     

    Per diem may not taxable when it is part of an accountable plan, meaning the expenses are substantiated and any excess is returned to the employee

    • The actual expense method and per diem allowance methods can be used for deducting meal expenses, depending on the driver's circumstances.