topic Employer Pays Less than GSA for M&IE in Deductions & credits

Employer Pays Less than GSA for M&IE

mitch101 — Wed, 04 Jan 2023 23:24:28 GMT

Hello-

I am a contractor and am paid a flat rate per diem for Meals and Incidentals that is below the set GSA rates.

(i.e. $35/day tax free regardless of location). Lodging is covered.

When deducting M&IE in place of actual meal and incidental expenses do I deduct the full GSA rates? The flat rate that I actually received? Or the difference between GSA and the flat rate that I received(the unreceived portion)?

Re: Employer Pays Less than GSA for M&IE

Critter-3 — Thu, 05 Jan 2023 00:45:18 GMT

You mention "EMPLOYER" so if you are a waged employee that gets a W-2 at the end of the year then you cannot deduct any expenses.

However if you are self employed then ALL of the income including the per diem is reported as such and then you can deduct the full GSA rate and the allowed percentage will be calculated by the program ... enter them carefully in the correct places in the travel and meal expenses section.

Re: Employer Pays Less than GSA for M&IE

mitch101 — Thu, 05 Jan 2023 01:00:32 GMT

Thanks for clarifying my post - I am a self employed contractor, so technically I guess it's my client rather than Employer that pays.