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How do I deduct the per diem that I paid to my employee?
As the employer, I paid my employee per diem allowance for her expenses during travelling (during the time she was away from her home while on the project) as per the IRS directions.
https://www.irs.gov/pub/irs-regs/perdiemfaq&a.prn.pdf
The daily amount that I paid was within the federal per diem rate limits and I have received expense reports as instructed on the IRS page. These payments have not been included in my employee's wages and as a result on her W2.
My question is, how do I deduct these per diem payments on my business return?
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How do I deduct the per diem that I paid to my employee?
If they were for travel put them on the travel line. If not you can always make your own category later in the program if none of the preset categories see to fit.
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How do I deduct the per diem that I paid to my employee?
If they were for travel put them on the travel line. If not you can always make your own category later in the program if none of the preset categories see to fit.
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How do I deduct the per diem that I paid to my employee?
Per diem is allowable for assignments shorter than one year. Since her project was for almost eleven months, the total per diem paid is a large amount at the end and I do not want to raise any flags even though I followed the IRS directions and limitations. I understand there isn't a specific location for per diem and I will need to distribute it towards different categories such as travel, meals and maybe a few more preset categories as you have suggested.
By the way, how do I create a new category under the business expenses in the Business version? Is it through "All other expenses" and then I manually write the description?
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How do I deduct the per diem that I paid to my employee?
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How do I deduct the per diem that I paid to my employee?
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How do I deduct the per diem that I paid to my employee?
Thanks to both of you for your comments.
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