I receive an extra 18 dollars a day when I work out of town for meals. Is that a taxable income?
2007-01-05 08:53:30 · 4 answers · asked by musickjp1 1 in Business & Finance ➔ Careers & Employment
If the employer includes it in your taxable income, then you can deduct it on form 2106 with your itemized deductions. If you don't itemize, then ask the employer to stop including it because you are not able to take the deduction. They should give you a choice since they can deduct it either way. By the way, depending on the city you are in, you can actually take a higher per diem when you are out of town on business. The IRS allows an amount per day for standard meal allowance depending on which city you are in.
2007-01-05 09:08:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I have never been taxed on mine from 4 different companies.
However when I did travel it was alway a per diem within the government rate for the city I stayed in.
If you exceed that rate - yes it can be taxed. That would depend on if you just got lunch money or if you stayed over night. 18 is very low for a overnighter.
google federal per deim rates and read up on the rules.
2007-01-05 17:08:21 · answer #2 · answered by Carl P 7 · 0⤊ 0⤋
per diem is not considered reimbursement, it is considered a fee which can be taxable.
2007-01-05 17:02:01 · answer #3 · answered by dihollywood 2 · 0⤊ 0⤋
no
2007-01-05 16:58:12 · answer #4 · answered by golferwhoworks 7 · 0⤊ 0⤋