Quote from: Silverback on Mar 16, 2010, 11:08 That is only if you do not return to your "Tax Home" or like myself have a wife at my permanent residence. If I am maintaning a "Tax Home" and work a contract for more than a year, but I maintain my home of record and intend to return to it at the completion of the job, not only is perdiem legal, it is not taxable. Going home does not change the fact that you are continuing to receive income from the same source and tax homes are judged individually, not as a family even if you file joint. Any job expected to last longer than a year is considered "permanent" or "indefinite" in the eyes of the IRS (IRS Publication 463) and do not qualify for tax free allownaces or per diems. One thing that can be confusing is the fact that a "tax home" and a permanent home/residence are not the same thing. A tax home is based on economic factors, primarily, where the taxpayer makes his/her income, not where they actually keep a home. The income based determination of a tax home is changed when the job or series of engagements are temporary, which is defined as less than 12 months