Get Revenue Procedure 2001-47 - Per Diem Allowances.. This Procedure Provides Rules For Deeming

Per diem paid under a nonaccountable plan is reported as income on line 1 of the employee's W-2.

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As an employee, you may qualify for a per diem tax deduction by using the per diem rates to determine your lodging, meal, and incidental expenses. To find per diem rates, visit .gsa.gov. Report your per diem tax amounts on Form 2106. You don't need to keep a record of your actual costs.

The per diem rates in lieu of the rates described in Notice 2022-44 (the meal and incidental expenses only substantiation method) are $74 for travel to any high-cost locality and $64 for travel to any other locality within CONUS.

Rates vary by location and time of year and are broken down into two categories: lodging and meals and incidental expenses (M&IE). As long as your payments do not exceed the maximum federal per diem rate, they are non-taxable; if per diem payments exceed federal limits, any excess will be taxed as ordinary income.

The per diem rates in lieu of the rates described in Notice 2022-44 (the meal and incidental expenses only substantiation method) are $74 for travel to any high-cost locality and $64 for travel to any other locality within CONUS.

As of October 1, 2023, the special meals and incidental expenses (M&IE) per diem rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS).

Per diem payments aren't subject to income tax since they aren't included in an employee's wages. However, your payments will be taxable if the following apply to you: You didn't file an expense report with your employer.