Yes, if your per diem payments were reported to you on Form 1099, you will include this income on your tax return.
Payments will be taxable to the employee when any of these situations are true:
· No expense report is filed with the employer,
· The expense report filed does not include the date, time, place, amount and business purpose of the expense,
· A flat amount is given to the employee and no expense report is required, or · Per diem is paid in excess of the allowable standard federal rate.
These per diem payments listed above would be treated as wages and employment taxes are due from the employer.
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Per Diem Payments Frequently Asked Questions - Internal ...
