Can I deduct any taxes paid on my per diem since the per diem is included as income on Box 1 of the W2?

[ksucat93]

I started a two year assignment on June 1, 2015 and began receiving per diem on that date.  The income associated with the additional per diem is reported on the W2 box 1 along with my base salary.  Since the per diem is to pay for the rent and meals that I am paying while on assignment, is there a deduction possible based upon these expenses?

[RayW1 · Accepted solution]

Yes, any deductible expenses would be reported on Form 2106 (Employee Business Expense).  

The amount of expense from 2106 must be included with other expense that are lowered by 2 % of AGI,  Employee business expenses are included with itemized deduction.  In many cases, there is no benefit to itemized deductions until the amount exceeds standard deductions.  

The section for non-accountable plans are covered in Publication 463.  Types of expenses to deduct are covered here.