Is unused per diem taxable? How do you report it?

Question

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??

Answer 1

Nope it is free money.

The company gets to claim the expenses, and you get to keep the money.

This is one of the RARE instances where the IRS actually allows you to keep the difference without paying tax on it.

Enjoy!

Answer 2

It relies upon on the way you outline in retaining with diem. if you're touching on food in common words, then that is in common words taxable no matter if that is over that allowed in retaining with diem in retaining with the IRS. reckoning on the area of the project, the in retaining with diem can determination from $30 to $sixty 4 an afternoon in food. See the link below for the present costs. If the in retaining with diem is his earnings for each day, then that is taxable.

Answer 3

No. Per diem allowance is a standard reimbursement of expenses. As far as the IRS is concerned, this amount is exactly what is cost you feed and/or lodge yourself.

Answer 4

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