Per diem: one approach is stable, other is higher
The IRS’ rates for per diem charges will be stable for one way they can be calculated, and higher for another. The post Per diem: one approach is stable, other is higher appeared first on FreightWaves .
Truckers face two distinct per diem rates for their travel expenses in the coming fiscal year, according to the Internal Revenue Service. One rate will remain steady, while the other will see an increase. The IRS has announced that its transportation-specific meals and incidental expense rate will stay at $80 per day for trips within the continental United States and $86 for trips outside of it. This rate pertains specifically to workers in the transportation industry.
For companies that employ the High-Low Substantiation Method, the rates will rise. Those who travel to designated high-cost areas will see their daily allowance increase from $319 to $329, while those traveling to other areas will see their allowance rise from $225 to $230. This method simplifies the record-keeping process and often reduces taxable income more than tracking every receipt.
The High-Low Substantiation Method, described by Thomas, Zollars & Lynch, offers an alternative to the locality-by-locality federal rates. It allows payors to use one rate for designated high-cost localities within the continental U.S. and another for all other CONUS localities. High-cost localities are not limited to just major cities like New York and Los Angeles; they can include various destinations, including Gulf Shores, Alabama, Aspen, Colorado, New York City, and even Panama City, Florida.
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