Originally Posted by
md11phlyer
Stupid question for ya. If your perdiem is based on the government rate is the tax writeoff the same?
I'm glad you posted this, next time in PVG when I run into you guys I will politely indicate that I am out of per diem and that I know for a fact that you have 20 bucks left. So the last round's on you!
MD Phlyer,
At the risk of being totally wrong and publicly corrected, I'll take a stab at your question.
As our UPS per diem goes up our tax writeoff is less. Here is my amateur reasoning.
Simplified, if you itemize and file a form 2106 Employee Business Expenses you can add up your Meal and Entertainment Expenses (basically what the government thinks you will spend in each city) and then multiply it by 75% since your are a transportation worker. So let's call this number "Your expenses/your writeoff"
On the other hand, your company pays you a per diem which is used to offset, "Your expenses/your writeoff".
The more you are paid in per diem, the less you will be able to writeoff on From 2106.
I hope I answered your question, and I hope my info is accurate.
Regards,
FF