Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mmrh1120
New Member

Self employed ind. contractor. Received $59/day perdiem for meals, included in income Box 7 on 1099-Misc. Does the 50% ded for meals on Sch C line 24 apply to perdiem?

Confused about the 50% meals deduction on Sch. C Line 24b as it pertains to daily per diem amount.  It is added as income to Box 7 on non-employee compensation and I think I should be able to deduct the full amount received as per diem?

1 Best answer

Accepted Solutions
MinhT
Expert Alumni

Self employed ind. contractor. Received $59/day perdiem for meals, included in income Box 7 on 1099-Misc. Does the 50% ded for meals on Sch C line 24 apply to perdiem?

Unfortunately, you can only deduct 50% of your meals when traveling on business even if your client reimbursed you on a per-diem and included the amount on your 1099-MISC.

The only way not to have a tax "hit" on your meal expenses is when you are reimbursed on an accountable plan (where the employer or client reimburses you the exact amount of your meals on presentation of supporting documents).

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

View solution in original post

3 Replies
MinhT
Expert Alumni

Self employed ind. contractor. Received $59/day perdiem for meals, included in income Box 7 on 1099-Misc. Does the 50% ded for meals on Sch C line 24 apply to perdiem?

Unfortunately, you can only deduct 50% of your meals when traveling on business even if your client reimbursed you on a per-diem and included the amount on your 1099-MISC.

The only way not to have a tax "hit" on your meal expenses is when you are reimbursed on an accountable plan (where the employer or client reimburses you the exact amount of your meals on presentation of supporting documents).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
mmrh1120
New Member

Self employed ind. contractor. Received $59/day perdiem for meals, included in income Box 7 on 1099-Misc. Does the 50% ded for meals on Sch C line 24 apply to perdiem?

Thank you for responding.
drdively
Level 2

Self employed ind. contractor. Received $59/day perdiem for meals, included in income Box 7 on 1099-Misc. Does the 50% ded for meals on Sch C line 24 apply to perdiem?

So, just to clarify, a 1099 fee basis contractor [paid flat fee per visit completed] who receives a flat per diem reimbursement [with no provision for submitting expense receipts to the contractor]  will see the per diem total amount paid broken out on the 1099 in a separate box.  And that amount can only be offset as taxable income by deductions on Schedule C.

 

If so, I am glad I upgraded to Turbo Tax Home and Business, as this is the first year BACK in to a 1099 scenario in a bigger way.  

Dynamic AdsDynamic Ads
Privacy Settings
v