Career Path > Tax Q&A

Department of Labor and Per Diem Payments - The IRS continues its audits

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hamsamich:
The small company I worked for at SRS recently (2012) for 2 years told all of us if we wanted to come back to work for them and get per diem we had to wait 18 months.  They had some sort of corporate financial lawyer on retention, it came from him.  I think 18 months is overkill.  I actually had a break in my work for 2 months (did an outage they let me come right back). They taxed our per diem as wages after a year, which makes sense, even though I had a 2 month break at 11 months then came back to finish my 2 years.  There aren't any per diem jobs anymore at SRS now I don't think anyway for RP, but this was an if-then type of thing.  That company folded in 2013.

traveltax:

--- Quote from: hamsamich on Jul 16, 2014, 06:08 ---The small company I worked for at SRS recently (2012) for 2 years told all of us if we wanted to come back to work for them and get per diem we had to wait 18 months.  They had some sort of corporate financial lawyer on retention, it came from him.  I think 18 months is overkill.  I actually had a break in my work for 2 months (did an outage they let me come right back). They taxed our per diem as wages after a year, which makes sense, even though I had a 2 month break at 11 months then came back to finish my 2 years.  There aren't any per diem jobs anymore at SRS now I don't think anyway for RP, but this was an if-then type of thing.  That company folded in 2013.

--- End quote ---

Remember that a tax home is your "principal place of income" - Travelers maintain tax homes under a narrow exception to that rule for temporary jobs. Too much time and too many visits to the same place create a tax home (principal place of income) regardless of how "temporary" each individual assignment is.

hamsamich:
Yep my tax home changed that year.

SloGlo:
spend all the diem, don't worry, bee happy. if you're away from home 'n diem gets tacks yew got an o.t. increase, bee happy. :)

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