Question:
I am starting to prepare my stuff for my account and want to be fully prepared. Am I to understand that if I am on the road lets say 14 days but the last day I get home at lets say 4 am that I can not use the last day in my total days out for pre-denim purposes
Good things come to those who wait...impatience only prolongs the glory.

Answer:

It is also called STANDARD MEAL ALLOWANCE, which is $38 a day.
There are many ways to figure the number of days. If you are going to someone that does not understand caring and the fact that the IRS has set up a specal allowance for TRANSPORTATION WORKERS, you may have a problem.
I try to set up people to figure their days as follows: On a calendar write down your location every day at a specific time. Usually breakfast time. If home write HOME. Then it is easy to figure the number of days and it will be as close to acurate as trying to keep the times.
More than 70% of carers over pay their income taxes. PER DIEM is the must misused deduction that carers have.
HAPPY MOTORING AND I WILL...SEE YOU AT THE TOP. russell
I will buy coffee at the TA or Petro

Answer:

In an attempt to save accountants fees I may go the route of the long form. I'm stuck in IRS Hades, bebopping from one website to another to find this form and that. Now, on the per diem, it stated in one area its been raised to 65%. Then I went and found somewhere it stated that per diem is $30/day for the meals portion. Now, do I take the number of days he figures up as being away from home, multiply that by the $30 and then multiply it again by 65%? I think I'm confusing myself lol. Any help is appreciated.
Jenn
*Therapy is expensive. Popping bubble wrap is cheap- you choose*

Answer:

Over 70% of carers over pay their income taxes. WHY?
You along with a lot of carers and tax people that know nothing about carers taxes are attempting to do something you have no business doing.
In a recent IRS news letter they (the IRS) stated that last year American tax payers overpayed their income taxes by over a BILLION DOLLARS $1,000,000,000. And they did not even say thanks.
Perdiem for transportation workers is $38 a day and you get to keep 65% after all the calculations.
I don't make any money when I do taxes for FREE. You don't make any money when you haul freight for free!
HAPPY MOTORING AND I WILL...SEE YOU AT THE TOP. russell
I will buy coffee at the TA or Petro

Answer:

Thanks Russell. Well I'm not doing it itemized, since he's company he barely makes what they consider the minimum to show a difference in deductions, so I am going 1040A where I'll be getting more than I have in recent years back. Thanks for your time again, Russell.
Btw, to do something one has to learn, if there is no one to teach then it is a lost soul trying to find things on their own. So to be clueless as far as carers taxes could possibly be a normal thing until taught or led into the right direction to learn. Once in an ideal thought a couple years ago before my husband had back surgery (he's currently doing what he can to get off the road and use his benefits from the military to go back to school) I was going to attend a business school for accounting and he was one day going to get his own car. Now it would be to great of a risk for him to go O/O and with a toddler at home its not an ideal time for me to attend a school for accounting. So I'm trying to learn as I go, just wanted some direction and not be looked down upon for wanting a little help in learning. I simply put what the IRS website and the per diem website had said that per diem is $30, I did not see $38, they said where you live could factor into how much it was. I'm not arguing anything, just stating what I read. I will not take up any more of your time. Thank you.
Jenn
*Therapy is expensive. Popping bubble wrap is cheap- you choose*

Answer:

I don't know what or where you read the per diem thing, BUT per diem has not been $30 a day since 1990.
The key word here is, "TRANSPORTATION WORKERS". You should get a copy of IRS Publication 463, it has all the travel information on deductions.
We did not get here by accident. I have spent tons of money, hundreds of hours, and my life learning what I know.
In order to work for me, the people must take the H & R Block basic tax course, then we embark on a 6 month training. Then under our supervision they can start putting the work together, I still do all the tax returns, and my office manager checks my work.
Good luck.
HAPPY MOTORING AND I WILL...SEE YOU AT THE TOP. russell
I will buy coffee at the TA or Petro

Answer:

Again I thank you. I used Quickens tax thing, we didn't have enough in deductions so it was sent as an unitemized return. My new issue is the state taxes, but I'm going to take them to H&R or somewhere like that and let them do them for me. Unknown to us while he worked for this one company out of K.C. for a couple of months they didn't take out NY state taxes (like other out of state companies have), instead they were Ks taxes. The paystubs do not show the state, so you know, that assumption thing leaves me with a headache lol.
Jenn
*Therapy is expensive. Popping bubble wrap is cheap- you choose*

Answer:

Jenn, make sure whoever you take those taxes to is aware of the federal law stating that drivers are to be taxed in their state of residence only and NOT where the company is located....otherwise, they're going to try to tell you that he has to follow "non-resident" rules, which is wrong!!!
Federal law supercedes any state law, and Massachusetts quotes the FEDERAL reg (Title 49 of the United States Code, Paragraph 11504, as amended on July 6, 1990):
V. Current Federal Limitations on State Taxation and Withholding
A. Taxation
49 U.S.C. § 11504, as amended, provides that no part of the compensation paid on or after July 6, 1990 to an employee who performs regularly assigned duties in more than one state by a rail or motor carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission or by a motor private carrier, shall be subject to the income tax laws of any state or subdivision of that state, other than the state or subdivision of the employee's residence.
NY refers to the federal regulation in the NY Employers Guide, NYS-50, Page 19, Section K, first paragraph. If you can dig enough, you'll find it in every state's tax laws.
BUT, don't expect them OR H&R to know it...over the course of last year, I spoke to several officers/employees at the MA Department of Revenue, the NY Dept of Taxation, AND the IRS, and not ONE of them was aware of this regulation!!! They ALL tried to tell me we had to file as a non-resident....which only gets you PART of your money back!
I was stupid enough to listen for 2001 taxes, even though I didn't think they were right. Now, after filing an amended return, we're being told it could take up to 6 months to get the rest of it back. Trust me...that won't be happening for 2002 taxes!!!
Anyway, just be REALLY careful if you go to H&R or anyone else to have them done, ok? And good luck!!
Cheri
May happiness come on secret winds and surround you forever in the ways of beauty...
Author Unknown
Last edited by Cheri on Sat Feb 01, 2003 4:30 am; edited 1 time in total

Answer:

I have spent the last 14 years fighting with companies, states, CPA's, H & R Block, and local tax preparers.
I expect everyone that does income taxes to know what IRS Publication 463 says. I don't think that is too much to ask.
To date I have sent out more than a thousand (1,000) copies of the 49 law. Most will just file it in the round file.
These are the figures for last year. We ammended 100% of our new customers back taxes. This is the break down.
H & R Block 40%
CPA's 30%
car specialist 20%
Local tax prepar 10%
People it is your money that you give away to the IRS.
This was in a recent IRS newsletter: Last year (2001) taxpayers over paid their income taxes, (because of not taking the proper deductions) ONE BILLION DOLLARS ($1,000,000,000).
This should be a crime!
HAPPY MOTORING AND I WILL...SEE YOU AT THE TOP. russell
I will buy coffee at the TA or Petro