If working as a contractor, how do I calculate per diem?

Question

How do I know how much per diem I can have deducted?

Is it just the rent at the new city where I'm going to move, or do I include utilities, food or what else?

Answer 1

Your question makes only half sense. I believe you are asking about the I.R.S. code that allows you to write off a per Diem amount when you file your taxes next year?

If so, go on line and request the circular or publication for the per Diem information. It will have information on all the states, and you must find the state you are working in.

You have to document the days you are there, and the days you go home. And it will give you an amount for just housing (rent) and housing and food. I think your utilities are reported together with the rent. Keep you receipts, you know Uncle Sam.

Answer 2

it's best to speak with a tax lawyer or a CPA as each city & state & nation have different values.