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khlovell
New Member

My company policy for PerDiem for MORE than one year is that it is listed and taxed as Block 1 income on W2. Are my business expenses away from my home state deductible?

I have been working in a state other than my home state for a few years and have been receiving per diem through a policy that makes it taxable income and it is included in my W2-Block 1 income.  There are NO indications on W2 that I receive Per Diem. There is no 1099.  I have been paying rent, utilities, etc. and other business expenses during these years and have not ever claimed business expenses.  If the business expenses are eligible, that would mean that I have approx. $12K expenses per year for the last 3 or 4 years. I now owe large amounts of money to the IRS back through 2014 and am curious if I should have claimed these business expenses or if it is even legal and proper.???

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IsabellaG
Expert Alumni

My company policy for PerDiem for MORE than one year is that it is listed and taxed as Block 1 income on W2. Are my business expenses away from my home state deductible?

No, you can only deduct travel expenses if you have a temporary job that is expected to last for one year or less. If you have been working at this job for a few years, it wouldn't qualify as temporary. See this link: https://www.irs.gov/publications/p463/ch01.html

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IsabellaG
Expert Alumni

My company policy for PerDiem for MORE than one year is that it is listed and taxed as Block 1 income on W2. Are my business expenses away from my home state deductible?

No, you can only deduct travel expenses if you have a temporary job that is expected to last for one year or less. If you have been working at this job for a few years, it wouldn't qualify as temporary. See this link: https://www.irs.gov/publications/p463/ch01.html

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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