IRS per diem rates for truck drivers 2024

The Internal Revenue Service (IRS) has released information on federal per diem rates for truck drivers in the new financial year 2024. The notification states that the per diem rate for truck drivers in 2024 will not undergo significant changes, with some exceptions.

Ahead of the new fiscal period, which began on October 1, 2023, the IRS issued Notice 2023-68, listing the principles for calculating the per diem rate for truck drivers in 2024.

As defined by the IRS, the per diem rate covers additional expenses for truck drivers during long-haul trips. The per diem includes lodging, meals, and unforeseen travel expenses within a total budget known as M&IE.

According to the updated information, the trucker per diem rate in 2024 is $69 for locations within the continental United States (CONUS) and $74 for regions outside of it (OCONUS), such as Canada.

If a driver opts out of meal coverage, they will still receive the minimum rate of $5.

While the per diem rate remains unchanged for the second year in a row, new regulations actively affect the realm of tax regulation.

For the fiscal year 2021-2022, there was a provision for a 100% tax deduction for meal expenses, including per diem. However, as of January 1, 2023, standard meal expenses are deductible at 50%, and per diem expenses at 80%.

This may pose a number of issues for transportation companies during tax filing periods, as reduced freight rates and increased driver expenses could result in decreased working capital for companies.

Additionally, changes in tax legislation in 2023 could soon lead to increased tax deductions.