Per Diem deductions

Forum|Forum|6 years ago
February 10, 2020
2 replies
18 views

I am in communication tower construction so I travel for work. If my company gives me $80 a day per diem total, but the federal rate for the area is $96 for lodging and $55 for M&I, can I claim the remaining amount on my taxes as a deduction?

Not A Product Question

Carl

Level 11

If you are a W-2 employee then you are no longer allowed *any* W-2 employment deductions. Not a penny. In fact, the $80 per day is taxable income to you and will be included as such in box 1 of your W-2 when you get it.

You need to talk with the employer about what is called an "accountable reimbursement plan".

That's where you pay your job related expenses up front out of your own pocket. Then you submit the receipts to your employer and they reimburse you dollar for dollar. With this method, what you are reimbursed is *not* included on your W-2 anywhere.

But if you were paid $80/day per-Diem in 2019, it's to late for the 2019 tax year. It's all taxable income to you. Every penny of it.