Per diem and possible tax deductions?

February 28th, 2010

I will be working a a temp about 200 miles from my home. My company will provide a per diem of 80 dollars per day. Can I deduct other expensives such as mileage from my tax home to my temp home and any other deductions.

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  1. tro - February 28th, 2010 at 4:46 pm

    costs of your expenses for work away from home overnite are deductible
    if you keep an accounting of those and compare with what you are being paid, whatever you expense greater than the company pay can be deducted, and yes mileage would be one

  2. the tax lady - February 28th, 2010 at 4:46 pm

    1. The temporary assignment MUST be less than 1 year. It cannot be indefinite.

    2. The per diem of $80 is for what? Lodging and food? If you spend more and want to try to deduct it, the IRS requires proof of lodging expenses. The food can be the federal amount (at 50%).

    3. The left over amounts are added to the 2% section of schedule A–meaning it’s reduced by 2% of your AGI, then added to the itemized deductions if anything is left over. Then if you can itemize, it reduces your taxes.

    In 17 years of business travel, I never had enough extra to make a difference.

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