If I work/live in NY and have to travel for business by car to NC, but stop in VA (about halfway) for the night, what state do I use for the per diem for each day?

[DanielV01]

Do you need the per diem to claim deductions or reimbursement from your job?  Are you employed by a company or self-employed?  Are you talking about the lodging rate or the meal and entertainment rate?  There are different rules depending on your situation.

Keep in mind that if you are an employee, none of these expenses are deductible on your Federal Tax return for the changes made in the Tax Cuts and Jobs Act of 2018.  New York still allows you to claim Unreimbursed Employee Expenses on the NY State return, but neither VA nor NC will allow the expense, if you must file a nonresident state return for either state.

[MB86]

I should have clarified, that I am self-employed so the travel would be deductible.  I have previously used actual expenses but may do better with the per diem for future years.  If I'm traveling from NY in the morning, sleep over in VA for the night, and arrive in NC the next day, which state I use per diems for.  I know the first and last day are different per diem rates as well, so is it the state I wake up in, or end up in?  Thank you!

[MB86]

Also I'm talking about the meal and hotel per diems.

[MB86]

Sorry, the meal per diem and incidentals, not the lodging.

[DanielV01]

@MB86  Sorry I couldn't get back to you sooner.  You are thinking through your situation in the right way.  As you have corrected, lodging is not expensed per diem, but actual cost.  Meal and Incidental may use the per diem rate, but you are not required to do so (but you either use per diem throughout the year or the actual expenses, you can't go back and forth throughout the year).  If you are not subject to DOT regulations, you will be entitled to 50% of the rate or actual expense as a deduction.  (DOT workers are allowed 80%).  

As far as which method is better, you do best to compare.  The following website is very helpful:  GSA per diem rate.  The M&I rate is usually the same country-wide except in certain "more-expensive" urban regions.  

[MB86]

Thanks, if the amounts were different (as you said in a more urban area) I wasn't sure if I needed to break down the amounts by meal in each state.  For instance, if I had breakfast in New York, and lunch in PA, should I look at the individual amounts per state per meal?  And then what about incidentals?  It would probably be easier to use the standard amounts even if they are lower which are daily.

[DianeC958]

You can choose to use the different rates for each of the states.

To use the various state rates will take more work to find the various rates.

The other option is to use the overall rate for meals and incidentals for 2019 which is $55 per day.

For more information 2019 Federal Per Diem Rates