Truckers and other taxpayers in the transportation industry have new per diem amounts effective October 1 2015

The M&IE rates have increased effective October 1, 2015. Prior to this date the M&IE rates are $46, $51, $56, $61, $66, and $71 depending on the locality the taxpayer sleeps that night. Effective October 1, 2015, the M&IE rates increase to $51, $54, $59, $64, $69, and $74. The full per diem tables by state and key city can be found at www.gsa.gov.

The High/Low cost amounts are now $275 and $185 with the M&IE portion deemed to be $68 and $57, respectively. As normal some of the localities included in the high cost areas have changed.

The special M&IE per diem rate for taxpayers in the transportation industry is $63 for travel in the continental United States on or after October 1, 2015 ($59 for travel before October 1, 2015).

Per Diem is based on the locality the taxpayer sleeps that night. In addition, the per diem rate is if the taxpayer is away from home for 24 hours or during the time the taxpayer must rest per DOT regulations.

Truckers are able to deduct expenses that are somewhat different than other business expenses. These deductions can include those necessary for the job such as expenses that are ordinary for truckers. Expenses such as shower fees, navigational devices, and items purchased for the truck’s interior may also be deducted. It is important that receipts be kept and may be helpful for truckers to consult with a professional tax preparer familiar with allowable expenses. It is especially important when a trucker is an owner/operator and is compensated as an independent contractor.

It is also important that a log be kept to show cities that may be in the high cost area. This will allow a higher rate to be deducted. Without a written document or log, truckers may have difficulty proving the higher deduction.

Tracy Bunner is an enrolled agent and tax preparer with an office in Harrisville. She can be reached at 801-686-1995 or at tracy.bunner@hrblock.com.