Deductions & credits

I disagree with Opus.  It probably should be tax free.

 

A "flat monthly rate" is usually just the Federal per-diem amounts (or less).  A Per Diem is used in place of receipts, etc.  So all you have to 'prove' is that you were out-of-town on business and the satisfies the requirement of the Accountable Plan and would it be tax-free.

 

As I said before, check with your employer to see if they are doing it under an Accountable Plan.  They should be, and pretty much no extra work is required.