Ref the court decision: I agree that the tips are incidentals meant to be covered by per diem payments from the company, and as such would not be deductible if you claim the city allowance as your deductible.

However, if you keep a log of your actual meal and other incidental expenses, and exceed your per diem payments, then it is all deductible including tips, taxi, haircuts and shoeshines when away from home for a long trip, (say a ten day trip to Asia). The general philosophy of the law is that you can deduct expenses you have for work when you are away from home that duplicate those that are already paid for at home. So, if you have a gym membership, and you pay a $10 fee for a single use of a gym away from home then that would be deductible. Trying to deduct a $300 green fee in Maui because you would only be paying $30 at home might be pushing it.

Don't forget to include union dues on form 2106. Make sure that your tax preparer understands the special rules for workers covered by DOT hours of service for meal and incidental expenses.

Joe