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Reimbursement

Expenses that were originally paid for by the taxpayer that are later paid by the taxpayer's employer are considered reimbursements.   Reimbursed expenses are not tax deductible.  Per diem is a common type of reimbursement that truck drivers experience.  An employer that pays per diem via an accountable plan is reimbursing the truck driver for his or her meals and incidental expenses while on work-related travel.

The reason the so-called per diem deduction generates an increased tax refund for truck drivers is because the per diem from an employer almost never exceeds the trucker's M&IE expenses.


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