Per Diem Rates and Practices

[Bandit60]

without this straying too far from the original topic of the thread...

I talked to several people while at school about per diem and they say it isn't taxable. Turns out that one of our guys (forgive me, i'm not sure of the proper terminology) gets all of the taxes taken out of "normal" per diem returned to him at tax time. I don't know if this is correct or not...anyone know more? Is per diem taxable? Can you get the taxes taken on per diem returned to you when you file your taxes?[/QUOTE

Its been awhile since I was on a perdiem. Now I am on expenses. However, I do remember that the IRS only allows a certain amount per day to be tax-free. Anything over that amount(which I dont know what it is) is taxable income.

 

[banned username 2]

I do remember that the IRS only allows a certain amount per day to be tax-free. Anything over that amount(which I dont know what it is) is taxable income.

You are correct, the max used to be $1.25/hr, anything over was taxable... Not sure what the current non-taxable rate is... this was info from about 8 years ago...

 

[FracCapt]

You are correct, the max used to be $1.25/hr, anything over was taxable... Not sure what the current non-taxable rate is... this was info from about 8 years ago...

Now it's $41 per day for CONUS, and $46 for "OCONUS"(which, I assume they mean anything outside the Continental US - but try eating 3 meals in Paris for $46). If you really want to wade through a bunch of crap to see what all the requirements/limitations are, go to:

http://www.irs.ustreas.gov/irb/2003-45_IRB/ar17.html

 

[falconpilot]

We operate just like the company G200 works for.... We pay for everything on our company AMEXs plus we get a $2000 cash expense account for interantional trips just incase some places don't accept AMEX, and for tips and handling fees. Company pays for our cell phones, but if you go over your plan, you pay the difference. The perks of flying corporate can be great. Just don't abuse them.