i am a flight attendant and not real sure what to do with the per diem i know i was not taxed on it during the year. so do we have to claim it and then show how much we used of it on meals? or do we not have to do anything with it.
2007-01-17 10:38:28 · 2 answers · asked by tammy g 1 in Business & Finance ➔ Taxes ➔ United States
No. Per diem is intended to reflect the "business" expense you incurred. If it was already taxed you would be able to claim a deduction for it. What the IRS and many companies do is save their employees the trouble by using IRS-approved rates. It would be very rare indeed for the actual expenditure to equal what you received.
2007-01-17 10:44:49 · answer #1 · answered by skip 6 · 0⤊ 0⤋
Per diem is generally not taxed, as it is not income. It is a return of your employment related expenses. It will not appear on the year end tax forms you receive from your employer and is not entered onto your tax return forms.
The full explanation is in the IRS per diem leaflet, link attached.
2007-01-17 18:47:35 · answer #2 · answered by oakhill 6 · 0⤊ 0⤋