Another tax and per diem taxes question

[great cornholio]

I was wondering if you have to itemize you tax return in order to throw you per diem onto the tax refund. I didn't really have enough write offs this year to be close the the $5000 standard deduction, but I know per diem always adds atleast a few hundred bucks to the return and want to be able to put in on if I can without itemizing.

 

[atrdriver]

I was wondering if you have to itemize you tax return in order to throw you per diem onto the tax refund. I didn't really have enough write offs this year to be close the the $5000 standard deduction, but I know per diem always adds atleast a few hundred bucks to the return and want to be able to put in on if I can without itemizing.

Yes you have to itemize to use any type of business expense.

 

[great cornholio]

That was quick and easy....thanks for the reply.

 

[ksu_aviator]

Not so fast my friend.

Is your per diem above the maximum daily limit? If so, then yes, you need to itemize. If not, my understanding is that you don't report per diem as income.

http://www.irs.gov/publications/p463/ch01.html#en_US_publink100033773

Maybe you can glean some info from that page. Its all greek to me.

 

[atrdriver]

Not so fast my friend.

Is your per diem above the maximum daily limit? If so, then yes, you need to itemize. If not, my understanding is that you don't report per diem as income.

http://www.irs.gov/publications/p463/ch01.html#en_US_publink100033773

Maybe you can glean some info from that page. Its all greek to me.

Daily per diem is reported as income by the company, RON per diem normally isn't. And if it's not on your W2 you don't report it. Deducting the difference between what you get and the maximum requires itemizing.

 

[ikillbigfoot]

Daily per diem is reported as income by the company, RON per diem normally isn't. And if it's not on your W2 you don't report it. Deducting the difference between what you get and the maximum requires itemizing.

That's how I've always understood that too.

 

[Nevets]

I was wondering if you have to itemize you tax return in order to throw you per diem onto the tax refund. I didn't really have enough write offs this year to be close the the $5000 standard deduction, but I know per diem always adds atleast a few hundred bucks to the return and want to be able to put in on if I can without itemizing.

Actually, for 2008, the standard deduction is $5450 if you are filing as single. And yes, you have to itemize to deduct unreimbursed employee expenses. It is also subject to the 2% of AGI limit.

 

[ksu_aviator]

Daily per diem is reported as income by the company, RON per diem normally isn't. And if it's not on your W2 you don't report it. Deducting the difference between what you get and the maximum requires itemizing.

That's weird. I've never had any company report per diem.

 

[atrdriver]

That's weird. I've never had any company report per diem.

Most companies report your daily per diem (day trips only) as income, because the IRS views it as such. But most of us have very little of it, so it isn't a big deal.

 

[Nevets]

That's weird. I've never had any company report per diem.

Per diem for day trips is included in box 1 of your W2 as part of your wages, tips, or other income. All other per diem is included in box 12 of your W2.