Tax Per Diem Question?

robair73

robair73

Well-Known Member
Is anyone familiar with the per diem deduction you can do for your income taxes? All I know is that you have to go through the year and figure out which cities you layed over at and how much the company paid you in per diem for that layover. Then there's a formula you have to use in order to figure how much to deduct depending on the maximum allowable by the city. Anyone familiar with this?
 
I just use the government approved standard of $52 per city. Save a LOT of hassle and 9 times out of 10, I come out ahead anyway since I don't do a lot of overnights in expensive cities like NYC or LAX. If it's the beginning day or end day of a trip, you can only count a percentage of the $52.

From there, I take what I SHOULD have been paid in per diem, subtract what the company paid me, and you can deduct a percentage of that. It was 75% last year, but I'm hearing you can do 80% this year.
 
Thanks for the good info. That will save me a ton of time. Any idea what form to look for to do this?
 
robair73 said:
Thanks for the good info. That will save me a ton of time. Any idea what form to look for to do this?
Click to expand...

If you use Form 1040 - you need Schedule A suppported by Form 2106
Don't know what forms you need if you're doing 1040EZ or 1040A

kellwolf said:
It was 75% last year, but I'm hearing you can do 80% this year.
Click to expand...

Form 2106 is where it says you can do 80%, even though the IRS Pubs haven't been updated yet.
 
I did this for 2007 and had no issues with Fed, but my state sent me a letter asking for documentation. I wrote back with copies of my logbook and cited the IRS law, and they never acknowledged that letter that I sent, isntead, they sent another letter, exactly the same as the first. I replied to that again, and a few months later they sent yet another letter.

The phone number on the form is always busy...and I mean always...i called for 3 months, 3-4 times a week....always busy.


Soo yea..havent done anything with it since.


anyway, just sharing.
 
kellwolf said:
I just use the government approved standard of $52 per city. Save a LOT of hassle and 9 times out of 10, I come out ahead anyway since I don't do a lot of overnights in expensive cities like NYC or LAX. If it's the beginning day or end day of a trip, you can only count a percentage of the $52.

From there, I take what I SHOULD have been paid in per diem, subtract what the company paid me, and you can deduct a percentage of that. It was 75% last year, but I'm hearing you can do 80% this year.
Click to expand...

Can you email that excel sheet to me?
 
woodreau said:
Form 2106 is where it says you can do 80%
Click to expand...
YAY!!!

Propilot said:
I did this for 2007 and had no issues with Fed, but my state sent me a letter asking for documentation. I wrote back with copies of my logbook and cited the IRS law, and they never acknowledged that letter that I sent, isntead, they sent another letter, exactly the same as the first. I replied to that again, and a few months later they sent yet another letter.

The phone number on the form is always busy...and I mean always...i called for 3 months, 3-4 times a week....always busy.


Soo yea..havent done anything with it since.


anyway, just sharing.
Click to expand...
Sort of the same situation here. I keep getting a "bill" for someone else's taxes. They've got my name on the envelope, my address, someone else's SSN. No one wants to talk to me. I really feel bad for whoever owes $15,000 (last month's notice including fees and penalties and interest) on $600 worth of taxes.

-mini
 
Dang, that makes me really want to get to the bottom of it. I don't know what else to do though..ive sent letters, tried to call for weeks.... they just keep sending the same exact letter saying I need to send documentation for the deductions. uhhh, hello I did...twice. They dont even acknowledge my letters or copies of logbook....its like I never sent them.


If i end up getting a bill for some huge amt with fees im going postal!
 
You must log in or register to reply here.
Back
Top