Originally Posted by
arthur106
Can anyone explain to me how taxes work with per diem? A few questions I have specifically:
-Do I have to keep track of receipts spend on M&IE throughout the year?
-If I receive non-taxable per diem, is it still withheld from my check (only to get it back when I file a return)?
-Is there a limit to non-taxable per diem per year? (I had read something indicating this was the case, but could never find a dollar value).
Pretty much if you could share anything I need to know so I don't have any surprises at the end of the year.
Thanks!
The per diem tax deduction is no longer allowed under the new tax law starting in 2018.
Your non-taxable per diem is just that - non-taxable. Nothing is withheld from it when you receive it.
If you received more per diem in a year than someone flying the same trips getting the government rate, then the excess would be seen as taxable income. Given historical airline per diem rates, this is rarely an issue.