I am a traveling therapist and my employer pays me per diem as I am away from my tax home during my contracts, usually 13 weeks at a time. My employer had me in town A starting on 03/05/15 through 03/14/15 which is 100 miles away from my home. I then had a new contract in town B on 03/16/15 through 06/13/15. Town B is 120 miles away from town A and 120 miles away from my home. On 6/15 I started a new contract in town C which is 90 miles from my home and 30 miles from town A. It is my understanding of IRS code that per diem is taxable if I am in an area for 1 year. It is also my understanding that the calendar year starts new with a significant break in time. The IRS does not specify what a length of time is but says more than 3 weeks. I had a 13 week break between town A and town C. Does my per diem calendar year for town B start on 06/15/15 and go for 1 year or is my per diem in town C considered taxable on 03/05/16? If the letter towns are too hard to follow I would be happy to give the names of the towns. thanks "
