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Originally Posted by katbuad  Christykay, not to beat up on you here. . . as this this statement is typed it is not a correct statement. A true statement would be "we couldn't deduct travel charges because his company is reimbursing him." Reimbursing means hubby is turning in receipts to his company and they are paying him back dollar for dollar. Reimbursements net no income and no expense and have no tax effect.
Per diems, on the other hand, are flat amounts that are given for expected business expense. If my hubby gets $40 a day per diem but takes leftovers, he has income of $40. Or if hubby eats fancy restaurants that cost $60, he has additional business expense of $20. Income and expenses are what taxes are all about.
There are different type of per diems, taxable and non taxable, and excessive per diems. Per diems can be giving to cover lodging, meals, or other. Heck per diems are different for transporation workers than any other type of employee per diem. Because there is so many variations of per diems, you can't apply a general statement of "we couldn't deduct travel charges because his company is paying him per diem." I would suggest you dig deeper on this issue. |
My apologies...aparently I mis-typed, but my pilot isn't turning in receipts to his company for reimbursement he is paid a per diem amount for the time that he spends away from base. This amount is paid to him once a month.
I understand completely that there are different types of per diem, I was just confused considering we had gotten different information from the family IRS agent. (Whom obviously isn't a pilot
) As for your sound advice and suggestion to dig deeper into the per diem tax issue- I thought that is what I was doing when I brought up this question in the first place here on the forum. I appreciate your help as well as Jan's, but I guess the next step is to take my per diem tax questions to our Certified Public Accountant.