Travel expenses on 1099 and per diem

[mwmiller1]

i received a 1099 for work performed as an independent contractor. The 1099 also included travel expenses which I was reimbursed for. Its clear that on the plane tickets, hotels and mileage for example i would put these down as expenses on my tax return, the goal being to have taxable income only on the work performed and all the expenses being a deduction. I was also paid out a per diem to cover meals and other incidentals. Is this per diem only 50% deductible on my return? Or the entire amount?

[JohnW15 · Accepted solution]

For reimbursed meal expenses, which you indicate was the case here, you can deduct the actual cost of the meals, or a standard meal allowance.  Unreimbursed meals are usually subject to the 50% limitation.

According to this IRS FAQ relating to meal deductions,

• Generally, reimbursed meal expenses are deductible if your business trip is overnight or long enough that you need to stop for substantial sleep or rest to properly perform your duties. You can figure all your travel meal expenses using either of the following methods:
• Actual cost. If you use this method, you must keep records of your actual cost.
• The standard meal allowance, which is the federal meals and incidental expense (M&IE) per diem rate. The GSA website lists these rates by location. Note that lower rates apply for the first and last days of travel.
• The deduction for unreimbursed business meals is generally subject to a 50% limitation.

[mwmiller1]

thanks for the response. Can I just lump all these expenses into one bucket on my tax return or should i break then down by air travel, hotels, parking, per diem, etc?

[JohnW15]

It's best to break them down into their appropriate categories, to the extent that you can.  In my opinion, it's easiest if you go into "Forms" mode, then pull up your Schedule C (after you've input your 1099), and then you can enter the amounts into their appropriate lines on the Schedule C.

[Scottsotter]

It's a BS response to a simple question. He asked if his per Diem for food and incidentals or lets say the per Diem is just for food that he eats while on a remote location is 100% deductible? Can he put the per Diem under the 100% deductible meals? Assuming the he doesn't keep detailed records and uses at least all of the per Diem on food.