ksucat93
New Member

Can I deduct any taxes paid on my per diem since the per diem is included as income on Box 1 of the W2?

I started a two year assignment on June 1, 2015 and began receiving per diem on that date.  The income associated with the additional per diem is reported on the W2 box 1 along with my base salary.  Since the per diem is to pay for the rent and meals that I am paying while on assignment, is there a deduction possible based upon these expenses?
RayW1
New Member

Education

Yes, any deductible expenses would be reported on Form 2106 (Employee Business Expense).  

The amount of expense from 2106 must be included with other expense that are lowered by 2 % of AGI,  Employee business expenses are included with itemized deduction.  In many cases, there is no benefit to itemized deductions until the amount exceeds standard deductions.  

The section for non-accountable plans are covered in Publication 463.  Types of expenses to deduct are covered here.

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