Tax fairness bill would reinstate per diem for company drivers

As Tax Day approaches, there is a bill in the House and Senate that would restore the per diem tax deduction for employee truck drivers.

The Tax Fairness for Workers Act would allow an above-the-line tax deduction for union dues and expenses. It also would reinstate the miscellaneous itemized tax deduction for such unreimbursed expenses as travel and uniform costs attributable to the performance of services as an employee.

Rep. Brendan Boyle, D-Pa., introduced HR4963 last July, and Sen. Robert Casey Jr. introduced S738 in March 2023. Both bills have gained significant support but have yet to reach the finish line. The House bill has 183 co-sponsors, while the Senate version has 39.

“These extraneous costs present a challenge to many hardworking individuals who rely on these deductions to offset expenses and pay household bills,” Boyle said when the bill was introduced. “This legislation will reintroduce those deductions that were taken away several years ago and will ease some of the tax burden pressure currently faced by many middle-class families.”

Bill would help company drivers

Although the bill would benefit workers in a variety of industries, it also would help employee truck drivers.

The Tax Cuts and Jobs Act of 2017 eliminated employee drivers’ ability to deduct 80% of up to $63 in daily expenses on the road. The change didn’t affect owner-operators or leased drivers.

The Owner-Operator Independent Drivers Association supports reinstating the per diem deduction for company drivers.

“The elimination of the per diem for company drivers has unfortunately increased the tax exposure for many hard-working Americans who make their living behind the wheel of a truck,” OOIDA President Todd Spencer wrote in support of a previous version of the bill in 2019.

OOIDA’s FightingForTruckers.com provides additional information about the Tax Fairness for Workers Act.

The bill also is supported by the American Federation of Labor and Congress of Industrial Organizations.

“The Tax Fairness for Workers Act will directly benefit millions of hard-working Americans,” said Elizabeth Shuler, president of AFL-CIO. “Our tax system should no longer benefit the wealthy at the expense of the middle class.”

Tax cuts under the Trump-era bill expire on Dec. 31, 2025, and preliminary discussions about tax reform are in the works. LL