If your per-diem has been included as taxable wages, then you claim a full deduction of your per diem on Form 2106. The deduction is limited by 2% of your AGI and itemized deductions. However, you do not reduce the per diem by the amount of "reimbursement" because your per diem is being paid for with taxable income. Thus, you may deduct the amount (up to the Federal daily limit for the area in question, as found on gsa.gov) on that form without reducing the amount of the expense, and TurboTax will determine how much of the deduction will be used to reduce your income. Please see this FAQ and embedded links for additional information: https://ttlc.intuit.com/replies/3300445
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