Calculating deductions on your own!
I am new to the regional and to the tax system.
I do taxes myself and it has been fairly simple.
However, I wanted to ask regarding per diem deductions. I am not able to figure out how to add the rates. If someone can help me would be great.
For eg. lets say I start a 4 day trip on 1st of a month (I am based out of IAD). I overnight on the 1st at Cleveland, OH; on the 2nd overnight at Norfolk, VA; on the 3rd overnight at Houston, TX.
The GSA rates for Meals and incidental for those cities are - $56, $61 and $71- for a total of $188.
If i use standard rates of $59x3, the total is $177
(I understand I can only use one type of deduction, either the GSA rates or standard)
I get paid $1.70 per hour and for a total of TAFB 80 hours= $136.
Just to make it easier lets just use the standard rate of $59 for calculations.
So my additional deduction is $41.00 ($177-$136)
But they is the 80% rule- if i use that then do I take 80% of first overnight at Cleveland, Oh and last overnight at Houston, TX- the total now would be (59x0.8)+59+(59x0.8)=$153.4
Now my total additional deduction would be = $153.4-$136= $17.4
Is this is correct or am I doing something wrong?
Thank you