Truckers with w-2

[Dan]

Question;  Are truckers with W-2 able to use the M&IE rates (standard meals and incidental expenses rates) for 2018?

[MDEA]

No. Noemployee exspenses any more .Should be on an accountable plan.

[BLACK BART]

4 hours ago, MDEA said:

No. Noemployee exspenses any more .Should be on an accountable plan.

Agree.  The abolishment of 2106 for schedule A kills off their big refunds for meals, motels, supplies by claiming almost all year on the road,  Previously, many furnished required logs but some small truckers just guesstimated beaucoup days out.  Only upside now is taxes were withheld so they won't be absolutely killed by loss of the deductions, although reduced withholdings will likely result in much smaller refunds or maybe even (heaven forbid) owe.  Either way it goes, you're going to have unhappy campers - glad I've only got a few.

Re: accountable plans - big companies will probably do that, but I don't think small ones will go to the trouble.

[Dan]

Thanks for the replies.

[DANRVAN]

I was hoping to go to a near by town hall meeting today and express to congressman about negative impact of TCJA on clients,  but won't be able to make the three hour round trip drive.

 

[JohnH]

Complaining to your congresscritter is probably a waste of time unless you bring along a trunk full of campaign contribution money anyhow...

[BLACK BART]

23 minutes ago, JohnH said:

Complaining to your congresscritter is probably a waste of time unless you bring along a trunk full of campaign contribution money anyhow...

Probably true, but since he's a self-employed tax preparer (I assume), he could still get the mileage off.  And, I've heard that Oregon's a scenic tour.  

[DANRVAN]

49 minutes ago, JohnH said:

Complaining to your congresscritter is probably a waste of time unless you bring along a trunk full of campaign contribution money anyhow...

Disagree

[DANRVAN]

27 minutes ago, BLACK BART said:

Probably true, but since he's a self-employed tax preparer (I assume), he could still get the mileage off.  And, I've heard that Oregon's a scenic tour.  

Had other business to take care of along the way so that part would not be wasted.  Congressman needs to hear how  TJCA impacts his voters (and my clients) negatively, public forum is perfect setting.

[Catherine]

3 hours ago, DANRVAN said:

public forum is perfect setting

sometimes they do respond to public shame

[BLACK BART]

3 hours ago, DANRVAN said:

Had other business to take care of along the way so that part would not be wasted.  Congressman needs to hear how  TJCA impacts his voters (and my clients) negatively, public forum is perfect setting.

Well, we're getting a little close to politics since you're from where you are and I'm from where I am, but I'll just say that since I'm not a truck driver, but do run a small business (been complaining for years about nothing being done for us),  I like the 20% cut if they ever get it straightened out.

[JohnH]

At the risk of stoking the political fires, let me just say that congresscritters in my neck of the woods must be quite different animals than in other places.  I mean, they DO hold public forums, and they DO listen to what their constituents say, and they DO profess compassion for the issues raised. They act the right way, and they say the right things, but when they get back to the seat of power their actions are motivated by a whole different set of priorities... 

Or, as someone so eloquently said one time:  "We invited a politician to our home for dinner.  The louder he proclaimed his honesty, the more diligently we counted our silverware."

[BLACK BART]

1 hour ago, JohnH said:

...back to the seat of power their actions are motivated by a whole different set of priorities...

Aw John, you're just a cynic.  I've written my Congressman Conscience-Stricken several times over the years and, without fail, received a reply stating "Thank you for your timely views on subject so-and-so.  Please know that Congressman C-S will give serious consideration to your suggestions and act accordingly."  Why, he sounded sincere right down to the machine-written signature.

On the other hand, I must disagree with our Oregonian comrade's view on the relationship of money and politics.  Long ago, employed by a fanatical supporter of you-know-who; it was strongly suggested that all office employees "donate" $25 (no small sum to us at the time) to his candidate's campaign.  We reluctantly complied, but after the election I was very surprised to receive a personal invitation to the president's Inaugural Ball in Washington.   

[JohnH]

Bart: I worked in a political campaign back when I was a young college student. (We lost , which was the best thing that ever happened to me). When it comes to politicians, no matter how cynical I become, I just can't seem to keep up with reality.

What I thought was a contest of ideas with the best person/plan expected to come out on top turned out to be something quite different.  I even remember the big party meeting the night before the election. When they were handing out rolls of bills for "gas money" to the precinct workers lined up to drive people to the polls the next day, I was naïve enough to think the money was actually for the purpose of buying gas.  (I did wonder why everyone was laughing ) Silly me.

[WITAXLADY]

back to the topic! the Truckers magazines are still fighting for this so I am labeling these clients 2106 in case it gets in retroactively.

Can't believe  the  Construction Union is not fighting for this as well

[SaraEA]

When the TCJA was first drafted, the idea was to do away with most deductions and decrease the tax rates for everyone.  This is what was done in the last major revision of the tax code in the 1980s.  (Some folks still think they can deduct interest on credit cards.)  In 2017, however, there was haste to get the thing done before the holidays to give the taxpayers "a great big Christmas present."  The lobbyists came out in force and demanded that their particular favorite deduction be restored.  Policymakers just put most deductions back in without going through the usual process of having each item analyzed for cost.  Hence tax rates went down for many and the national deficit is skyrocketing.

We all know the 2% misc category was rife with abuse (work clothing that is street wear, cell phones that are personal, gym memberships, you know them all).  Yet there are some taxpayers who had legit expenses and got a big benefit--sales people whose employers give them 15 cents a mile, truckers, people with large financial advisor fees, etc.  These groups did not have the highly paid lobbyists so they lost.  If their prized deductions get restored, tax rates will have to go back up or the deficit will explode.  I have advised my clients who do sales to implore their employers for raises.  The employers likely got big tax breaks so might as well share them.

What started out as a way to simplify the tax code has turned into a code so complex even we pros can't get our heads around it.

[BLACK BART]

6 hours ago, SaraEA said:

...If their prized deductions get restored...

There's a possibility that might happen, but if you're waiting for the following to occur on a large scale, don't hold your breath.

6 hours ago, SaraEA said:

...I have advised my clients who do sales to implore their employers for raises.  The employers likely got big tax breaks so might as well share them...

P.S.  Lost my first employee trucker today.  Learning road expense was gone (was told last year, but claimed it's news to him), he threw a fit, picked up his papers and left.