The new per-diem numbers are now out, effective October 1, 2018. These numbers are to be used for per-diem allowances paid to any employee on or after October 1, 2018, for travel away from home on or after that date. The new rates include those for the transportation industry; the rate for the incidental expenses; and the rates and list of high-cost localities for purposes of the high-low substantiation method.
Per diem rates are a fixed amount paid to employees to compensate for lodging, meals, and incidental expenses incurred when traveling on business rather than using actual expenses.
The IRS permits taxpayers to use general predefined rates to substantiate business expenses under Internal Revenue Code Sec. 274(d) for lodging, meals, and incidental expenses incurred while traveling away from home for business purposes.
The General Services Administration (GSA) released the federal domestic per diem rates for periods effective from 10/1/17 through 9/30/18 (aka fiscal year 2018). Read More
Employees who travel out-of-town for business typically have their expenses reimbursed by their employer. If properly documented, such reimbursements are tax-free to the employee.
If you travel for work surely you are in tune with per diem rates for lodging meals and incidental expenses. Did you know that your per diem changes based on where you hang your hat for the day or night? This list below will help you dial in your claims.
The US GSA has the rates detailed by tax year back to 2003 along with interesting break outs. The most important message to be shared is to make sure to substantiate your specific business purpose for each business related travel expense claimed.