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all perdiam is a deduction unless u have no home and your employer reported it as income.. them u are screwed, its fully taxable then...you may even take more than the provided perdiam if you can prove your expenses.. dont forget the cost of job hunting, phone calls, lost deposits etc
cut and paste is a wonderful thing... perdiam may be taxable if you exceed the conus or exceed the limitations of the perdiam.. if you dont have a perm tax home perdiam as provided by the employer is fully taxable as income.
From my experience, and please correct me if I am wrong, some employers will provide an offer letter stating the per diem is issued either on an accountable or nonaccountable plan. Accountable means you account to them all expenses and they reimburse you with per diem. On the nonaccountable plan, you have to account for your expenses to the Internal Revenue Service, if audited. For example: nonaccountable plan-you receive $86/day diem for meals and lodging. Your actual expenses are $50/day. You have to report the excess, $36/day as income.On the accountable plan, the IRS believes you accounted for your expenses to your employer, therefore, no tax on that money. They will ask for copies of offers of employment, etc., to make the determination. BE VERY CAREFUL!
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