I am on an international assignment and getting meals and incidentals per diem allowance set according to the US Federal Govt rates. However, I am not using the entire amount i.e., I am able to save some of it. Is this saved amount taxable?? Consider the following facts:
1. This is an accountable plan
2. Per diem amount is not reported on W2
3. When I checked pub 463, this example was given which means I don't need to report anything:"In April, Jeremy takes a 2-day
business trip to Denver. The federal rate for
Denver is $173 per day. As required by his
employer’s accountable plan, he accounts for
the time (dates), place, and business purpose of
the trip. His employer reimburses him $173 a
day ($346 total) for living expenses. Jeremy’s
living expenses in Denver are not more than
$173 a day. Jeremy’s employer does not include any of
the reimbursement on his Form W-2 and Jeremy
does not deduct the expenses on his return."
If I understood this wrongly, how does one report this? Tax form??
2007-02-05
22:06:19
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4 answers
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asked by
Sai P
3
in
United States