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.
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