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: 
dericg510
New Member

Why is my lodging perdiem taxed.

Why is the $280 I get a week for lodging perdiem taxed and can I use the hotels as a tax deduction.

1 Best answer

Accepted Solutions
Critter
Level 15

Why is my lodging perdiem taxed.

If you are an employee, the employer can add a flat per diem to your wages to cover your costs.  Now it is up to you to document the actual expenses and if you itemize deductions you may be able to deduct these expenses. However, only the amount in excess of 2% of your AGI is deductible and your total of your itemized deductions must exceed the standard deduction before you will see any benefits. 

View solution in original post

3 Replies
Critter
Level 15

Why is my lodging perdiem taxed.

If you are an employee, the employer can add a flat per diem to your wages to cover your costs.  Now it is up to you to document the actual expenses and if you itemize deductions you may be able to deduct these expenses. However, only the amount in excess of 2% of your AGI is deductible and your total of your itemized deductions must exceed the standard deduction before you will see any benefits. 

View solution in original post

Hal_Al
Level 15

Why is my lodging perdiem taxed.

When an employer provides an expense allowance (per diem), instead of reimbursing the employee for his actual expenses; the IRS requires that the allowance be included on the W-2 as income. The employee then gets to deduct his actual expenses, subject  to the restrictions described by Critter#2
TaxGuyBill
Level 9

Why is my lodging perdiem taxed.

You may want to discuss this with your employer.  It would save your employer money if they set things up as a tax-free accountable plan.
Dynamic AdsDynamic Ads
Privacy Settings
v