Hal_Al
Level 15

Deductions & credits

Q. After 1 year of work as a W-2 Employee receiving per diem, this may still be untaxed depending on the company?

A. No.  The assignment must be "temporary".  1 year or more  is automatically not temporary.

 

 As @Opus 17  said,  You can't claim a tax deduction if the company adds the per diems to your taxable W-2 wages.