Per Diem
11-17-2008, 06:42 AM
#2
Gets Weekends Off
Joined APC: Apr 2007
Position: Looking out the window
Posts: 148
GSA - Domestic Per Diem Rates
Pretty self-explanatory if you just spend a couple minutes looking at it.
Pretty self-explanatory if you just spend a couple minutes looking at it.
11-17-2008, 09:33 AM
#3
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,293
Here's what I remember, but you should verify this with an accountant. I now use pro-diem pilot tax service, they calculate it all for you.
In general, you may take the allowed federal government per diem rate for federal employees (see previous post), subtract out the per diem you were actually paid, and deduct the difference.
The per diem rate you will use is the federal M&IE (Meals and Incidenatal Expenses) rate...do not include the lodging rate since your airline provided a hotel (unless you work for mesa).
There are two ways to do this...
- You can take the standard daily federal per diem and use it for all of your overnights OR
- You can itemize each travel day and use the city-specific MIE rate for each destination. The city-specific rate can be higher or lower than the stanard rate, depending on the cost-of-living. If you fly a 1900 and overnight in tiny towns in the sticks, the average rate will probably give you a larger deduction than the city rate. If you overnight in HNL or SFO, the city-specific rate will probably allow you to deduct your entire annual salary if you are a regional FO...
For first and last days of the trip I think you use 75% of the applicable MIE.
For day trips out of your domicile, I'm not sure if you can deduct anything at all, I think not. That is why company per diem for ready reserve and day trips is taxed.
Also if you are on a multi-day trip and flow through your domicile with a break, that does NOT stop the trip for per diem purposes unless you get a long break. I think that would have to be duty-off (ie overnight), but it might be something like 6 hours, not sure on that.
Also note that you should not read the federal travel manual and try to apply those rules to yourself...that is only for government employees. The tax code is what applies to you, and it simply allows you to use the federal per diem rates.
Example:
Day 1
Depart Domicile, arrive SFO: 75% of SLC rate
Day 2
Depart SFO, arrive TUL: 100% of SFO rate
Day 3
Depart TUL, arrive IAD: 100% of TUL rate
Day 4
Depart IAD, arrive Domicile: 75% of IAD rate.
IIRC, for any given day you use the rate for the city you woke up in. Commuters have to use your domicile, not your actual home.
In general, you may take the allowed federal government per diem rate for federal employees (see previous post), subtract out the per diem you were actually paid, and deduct the difference.
The per diem rate you will use is the federal M&IE (Meals and Incidenatal Expenses) rate...do not include the lodging rate since your airline provided a hotel (unless you work for mesa).
There are two ways to do this...
- You can take the standard daily federal per diem and use it for all of your overnights OR
- You can itemize each travel day and use the city-specific MIE rate for each destination. The city-specific rate can be higher or lower than the stanard rate, depending on the cost-of-living. If you fly a 1900 and overnight in tiny towns in the sticks, the average rate will probably give you a larger deduction than the city rate. If you overnight in HNL or SFO, the city-specific rate will probably allow you to deduct your entire annual salary if you are a regional FO...
For first and last days of the trip I think you use 75% of the applicable MIE.
For day trips out of your domicile, I'm not sure if you can deduct anything at all, I think not. That is why company per diem for ready reserve and day trips is taxed.
Also if you are on a multi-day trip and flow through your domicile with a break, that does NOT stop the trip for per diem purposes unless you get a long break. I think that would have to be duty-off (ie overnight), but it might be something like 6 hours, not sure on that.
Also note that you should not read the federal travel manual and try to apply those rules to yourself...that is only for government employees. The tax code is what applies to you, and it simply allows you to use the federal per diem rates.
Example:
Day 1
Depart Domicile, arrive SFO: 75% of SLC rate
Day 2
Depart SFO, arrive TUL: 100% of SFO rate
Day 3
Depart TUL, arrive IAD: 100% of TUL rate
Day 4
Depart IAD, arrive Domicile: 75% of IAD rate.
IIRC, for any given day you use the rate for the city you woke up in. Commuters have to use your domicile, not your actual home.
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