Tax questions (per diem, etc..)
02-02-2018 | 06:00 PM
#12
Gets Weekends Off
Joined: May 2008
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From: 737
02-02-2018 | 06:18 PM
#13
Line Holder
Joined: Sep 2015
Posts: 39
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From: ERJ 175, CA
02-02-2018 | 06:44 PM
#14
Gets Weekends Off
Joined: May 2008
Posts: 268
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From: 737
LOL
Here's this specifically:
It's not that bad.
Get an Excel spreadsheet fired up with all your overnights for the year. If you stayed in larger cities, try looking up the GSA rates. Otherwise, use the standard for DOT workers, $63 or $68/night. You must use either the GSA rates or the DOT Standard Rates for the entire year (can't mix and match from GSA to DOT during the year).
For each trip, determine the "travel days" (or the first and last day of the trip) to get the prorated figure. Here, you can use Method 1 or Method 2. For each trip, you can only use one method for the entire trip.
For Method 2, the example given alluded to the fact that "Jen" took about a day's worth of work to travel on her travel days, therefore she took credit for the entire day. Whereas Method 1 would have just given her 75% for each of the travel days.
With the spreadsheet, I figured out which method for each trip got me the highest allowance. When using Method 2, I pretty much came up with if my FDP for the day was about 8 hrs or more, it was counted as 100%, then prorated from there. So long as it's "consistent and IAW reasonable business practice".
Whenever I had one of the per diem companies figure it out, it was always less than what I came up with. I think it's because they only use Method 1.
Anyway, if you're bored during the SuperBowl, maybe that'll give you something to do.
Here's this specifically:
Amount of standard meal allowance.
The standard meal allowance is the federal M&IE rate. For travel in 2017, the rate for most small localities in the United States is $51 a day. Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances.
You can find this information (organized by state) at GSA.gov/Perdiem. Enter a zip code or select a city and state for the per diem rates for the current fiscal year. Per diem rates for prior fiscal years are available by using the drop-down menu.
If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. If you work in the transportation industry, however, see Special rate for transportation workers, later.
Federal government's fiscal year. Per diem rates are listed by the federal government's fiscal year which runs from October 1 to September 30. You can choose to use the rates from the 2017 fiscal year per diem tables or the rates from the 2018 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return
for the year. See Transition Rules, later. Standard meal allowance for areas outside the continental United States. The standard meal allowance rates above don’t apply to travel in Alaska, Hawaii, or any other location outside the continental United States.
The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U.S. Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. The Department of State establishes per diem rates for all other foreign areas. You can access per diem rates for non-foreign areas outside the continental United States at
Per Diem Rates Query. You can access all other foreign per diem rates at State.gov/travel/. Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates.
Special rate for transportation workers.
You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:
Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.
Travel for days you depart and return.
For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods.
Method 1: You can claim 3/4 of the standard meal allowance.
Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.
Example. Jen is employed in New Orleans as a convention planner. In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. She left her home in New Orleans at 10 a.m. on Wednesday and arrived in Washington, DC, at 5:30 p.m. After spending 2 nights there, she flew back to New Orleans on Friday and arrived back home at 8 p.m. Jen's employer gave her a flat amount
to cover her expenses and included it with her wages.
Under Method 1, Jen can claim 2 1/2 days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday.
Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice.
For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2 1/2 days.
See Part of Trip Outside the United States, later.
The standard meal allowance is the federal M&IE rate. For travel in 2017, the rate for most small localities in the United States is $51 a day. Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances.
You can find this information (organized by state) at GSA.gov/Perdiem. Enter a zip code or select a city and state for the per diem rates for the current fiscal year. Per diem rates for prior fiscal years are available by using the drop-down menu.
If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. If you work in the transportation industry, however, see Special rate for transportation workers, later.
Federal government's fiscal year. Per diem rates are listed by the federal government's fiscal year which runs from October 1 to September 30. You can choose to use the rates from the 2017 fiscal year per diem tables or the rates from the 2018 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return
for the year. See Transition Rules, later. Standard meal allowance for areas outside the continental United States. The standard meal allowance rates above don’t apply to travel in Alaska, Hawaii, or any other location outside the continental United States.
The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U.S. Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. The Department of State establishes per diem rates for all other foreign areas. You can access per diem rates for non-foreign areas outside the continental United States at
Per Diem Rates Query. You can access all other foreign per diem rates at State.gov/travel/. Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates.
Special rate for transportation workers.
You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:
- Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck; and
- Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.
Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.
Travel for days you depart and return.
For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods.
Method 1: You can claim 3/4 of the standard meal allowance.
Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.
Example. Jen is employed in New Orleans as a convention planner. In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. She left her home in New Orleans at 10 a.m. on Wednesday and arrived in Washington, DC, at 5:30 p.m. After spending 2 nights there, she flew back to New Orleans on Friday and arrived back home at 8 p.m. Jen's employer gave her a flat amount
to cover her expenses and included it with her wages.
Under Method 1, Jen can claim 2 1/2 days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday.
Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice.
For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2 1/2 days.
See Part of Trip Outside the United States, later.
Get an Excel spreadsheet fired up with all your overnights for the year. If you stayed in larger cities, try looking up the GSA rates. Otherwise, use the standard for DOT workers, $63 or $68/night. You must use either the GSA rates or the DOT Standard Rates for the entire year (can't mix and match from GSA to DOT during the year).
For each trip, determine the "travel days" (or the first and last day of the trip) to get the prorated figure. Here, you can use Method 1 or Method 2. For each trip, you can only use one method for the entire trip.
For Method 2, the example given alluded to the fact that "Jen" took about a day's worth of work to travel on her travel days, therefore she took credit for the entire day. Whereas Method 1 would have just given her 75% for each of the travel days.
With the spreadsheet, I figured out which method for each trip got me the highest allowance. When using Method 2, I pretty much came up with if my FDP for the day was about 8 hrs or more, it was counted as 100%, then prorated from there. So long as it's "consistent and IAW reasonable business practice".
Whenever I had one of the per diem companies figure it out, it was always less than what I came up with. I think it's because they only use Method 1.
Anyway, if you're bored during the SuperBowl, maybe that'll give you something to do.
02-03-2018 | 05:27 AM
#15
Used to get weekends off
Joined: Sep 2008
Posts: 244
Likes: 3
https://www.watsoncpagroup.com/free-per-diem-calculator/
This website will figure both methods for you and is free. All you must do is enter all your overnights, which you can find on your activity sheets. (Note: add your home base for the last day of the trip).
This website will figure both methods for you and is free. All you must do is enter all your overnights, which you can find on your activity sheets. (Note: add your home base for the last day of the trip).
02-03-2018 | 08:41 AM
#16
Gets Weekends Off
Joined: Dec 2005
Posts: 1,413
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Great find and good additional information on the other pages.
02-03-2018 | 01:46 PM
#17
On Reserve
Joined: Dec 2015
Posts: 35
Likes: 0
I actually just went through this last night with turbo tax. They need the full amount of what you are writing off and then they will break it down to the 80% maximum, and take out the 2% “upper limit” also. The only thing you need to do is to either take the standard $51 per day or find the daily rates for each city you overnighted in. I made a spreadsheet to keep track of all of this.
Only other thing is the first and last days of your trip aren’t considered full days so you need to reduce your rates to 75% for them. Once you put in the total claiming and the total you were paid, the system subtracts the 2 and gives your final write off total.
Like most said now, unless you have a bunch of other write offs, next year when the standard deductions double this is probably going to not be worth the hassle. And honestly don’t even know if it’s allowed in the new tax code.
Feel bad for the perdiem tax calc site, as they are going to lose a lot of business starting next year.
Only other thing is the first and last days of your trip aren’t considered full days so you need to reduce your rates to 75% for them. Once you put in the total claiming and the total you were paid, the system subtracts the 2 and gives your final write off total.
Like most said now, unless you have a bunch of other write offs, next year when the standard deductions double this is probably going to not be worth the hassle. And honestly don’t even know if it’s allowed in the new tax code.
Feel bad for the perdiem tax calc site, as they are going to lose a lot of business starting next year.
02-03-2018 | 02:04 PM
#18
Used to get weekends off
Joined: Sep 2008
Posts: 244
Likes: 3
I actually just went through this last night with turbo tax. They need the full amount of what you are writing off and then they will break it down to the 80% maximum, and take out the 2% “upper limit” also. The only thing you need to do is to either take the standard $51 per day or find the daily rates for each city you overnighted in. I made a spreadsheet to keep track of all of this.
Only other thing is the first and last days of your trip aren’t considered full days so you need to reduce your rates to 75% for them. Once you put in the total claiming and the total you were paid, the system subtracts the 2 and gives your final write off total.
Like most said now, unless you have a bunch of other write offs, next year when the standard deductions double this is probably going to not be worth the hassle. And honestly don’t even know if it’s allowed in the new tax code.
Feel bad for the perdiem tax calc site, as they are going to lose a lot of business starting next year.
Only other thing is the first and last days of your trip aren’t considered full days so you need to reduce your rates to 75% for them. Once you put in the total claiming and the total you were paid, the system subtracts the 2 and gives your final write off total.
Like most said now, unless you have a bunch of other write offs, next year when the standard deductions double this is probably going to not be worth the hassle. And honestly don’t even know if it’s allowed in the new tax code.
Feel bad for the perdiem tax calc site, as they are going to lose a lot of business starting next year.
02-03-2018 | 03:49 PM
#19
Line Holder
Joined: Sep 2015
Posts: 39
Likes: 0
From: ERJ 175, CA
LOL
Here's this specifically:
It's not that bad.
Get an Excel spreadsheet fired up with all your overnights for the year. If you stayed in larger cities, try looking up the GSA rates. Otherwise, use the standard for DOT workers, $63 or $68/night. You must use either the GSA rates or the DOT Standard Rates for the entire year (can't mix and match from GSA to DOT during the year).
For each trip, determine the "travel days" (or the first and last day of the trip) to get the prorated figure. Here, you can use Method 1 or Method 2. For each trip, you can only use one method for the entire trip.
For Method 2, the example given alluded to the fact that "Jen" took about a day's worth of work to travel on her travel days, therefore she took credit for the entire day. Whereas Method 1 would have just given her 75% for each of the travel days.
With the spreadsheet, I figured out which method for each trip got me the highest allowance. When using Method 2, I pretty much came up with if my FDP for the day was about 8 hrs or more, it was counted as 100%, then prorated from there. So long as it's "consistent and IAW reasonable business practice".
Whenever I had one of the per diem companies figure it out, it was always less than what I came up with. I think it's because they only use Method 1.
Anyway, if you're bored during the SuperBowl, maybe that'll give you something to do.
Here's this specifically:
It's not that bad.
Get an Excel spreadsheet fired up with all your overnights for the year. If you stayed in larger cities, try looking up the GSA rates. Otherwise, use the standard for DOT workers, $63 or $68/night. You must use either the GSA rates or the DOT Standard Rates for the entire year (can't mix and match from GSA to DOT during the year).
For each trip, determine the "travel days" (or the first and last day of the trip) to get the prorated figure. Here, you can use Method 1 or Method 2. For each trip, you can only use one method for the entire trip.
For Method 2, the example given alluded to the fact that "Jen" took about a day's worth of work to travel on her travel days, therefore she took credit for the entire day. Whereas Method 1 would have just given her 75% for each of the travel days.
With the spreadsheet, I figured out which method for each trip got me the highest allowance. When using Method 2, I pretty much came up with if my FDP for the day was about 8 hrs or more, it was counted as 100%, then prorated from there. So long as it's "consistent and IAW reasonable business practice".
Whenever I had one of the per diem companies figure it out, it was always less than what I came up with. I think it's because they only use Method 1.
Anyway, if you're bored during the SuperBowl, maybe that'll give you something to do.
Thanks for the help. TurboTax said the same stuff.
02-04-2018 | 06:03 AM
#20
Gets Weekends Off
Joined: Oct 2007
Posts: 2,741
Likes: 1
From: Sr. VP of button pushing
It's not, along with deducting union dues and FAA medicals.
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