Since your 1099-NEC includes the per diem, you can deduct the real cost of your travel, including hotel/lodging, transportation, and meals, on your tax return. This is because these expenses are related to your business. Because your per diem was lower than the standard rate for your location, deducting your actual expenses could provide a better tax benefit.
You can deduct the full amount of your expenses, such as transportation (plane, rideshare, cabs, baggage fees, car rentals) and lodging (hotel, AirBnB). If you drove your own car, you can deduct all of the business mileage for driving to and around your temporary work location. You can also deduct 50% of either the actual cost of your meals or the standard meal allowance.
For more information, see:
- Business travel expenses
- Tax deductions for business travelers
