Per Diem Calculation
12-28-2015, 01:13 PM
#1
On Reserve
Thread Starter
Joined APC: Feb 2015
Posts: 21
Per Diem Calculation
I apologize if this has been addressed already, but after searching the forums I did not find a suitable answer.
When calculating per diem for tax purposes, how does one use the rates for each city and how does one apply the 75% rule for first and last days? For example, let's say I'm MSP based on a 4 day.
Day 1 - Leave MSP, overnight MKE.
Day 2 - Leave MKE, overnight MCO.
Day 3 - Leave MCO, overnight ATL.
Day 4 - Leave ATL, arrive MSP.
If rates for these cities are (I'm making this up):
MSP - $30
MKE - $40
MCO - $50
ATL - $60
What numbers would I put together to come up with my "how much the IRS thinks I would have spent" number?
Note: I know there are a lot of great per diem services out there, and I'll probably use one however this is more for my curiosity.
When calculating per diem for tax purposes, how does one use the rates for each city and how does one apply the 75% rule for first and last days? For example, let's say I'm MSP based on a 4 day.
Day 1 - Leave MSP, overnight MKE.
Day 2 - Leave MKE, overnight MCO.
Day 3 - Leave MCO, overnight ATL.
Day 4 - Leave ATL, arrive MSP.
If rates for these cities are (I'm making this up):
MSP - $30
MKE - $40
MCO - $50
ATL - $60
What numbers would I put together to come up with my "how much the IRS thinks I would have spent" number?
Note: I know there are a lot of great per diem services out there, and I'll probably use one however this is more for my curiosity.
12-29-2015, 04:49 AM
#2
Gets Weekends Off
Joined APC: Jul 2007
Position: 767 Captain
Posts: 3,988
Originally Posted by sunglasses
I apologize if this has been addressed already, but after searching the forums I did not find a suitable answer.
When calculating per diem for tax purposes, how does one use the rates for each city and how does one apply the 75% rule for first and last days? For example, let's say I'm MSP based on a 4 day.
Day 1 - Leave MSP, overnight MKE.
Day 2 - Leave MKE, overnight MCO.
Day 3 - Leave MCO, overnight ATL.
Day 4 - Leave ATL, arrive MSP.
If rates for these cities are (I'm making this up):
MSP - $30
MKE - $40
MCO - $50
ATL - $60
What numbers would I put together to come up with my "how much the IRS thinks I would have spent" number?
Note: I know there are a lot of great per diem services out there, and I'll probably use one however this is more for my curiosity.
When calculating per diem for tax purposes, how does one use the rates for each city and how does one apply the 75% rule for first and last days? For example, let's say I'm MSP based on a 4 day.
Day 1 - Leave MSP, overnight MKE.
Day 2 - Leave MKE, overnight MCO.
Day 3 - Leave MCO, overnight ATL.
Day 4 - Leave ATL, arrive MSP.
If rates for these cities are (I'm making this up):
MSP - $30
MKE - $40
MCO - $50
ATL - $60
What numbers would I put together to come up with my "how much the IRS thinks I would have spent" number?
Note: I know there are a lot of great per diem services out there, and I'll probably use one however this is more for my curiosity.
01-31-2016, 05:59 AM
#4
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Joined APC: Jan 2016
Position: Retired American B767/757 Captain
Posts: 26
You can try Online Per Diem - Home - Per Diem It really is free. Enter you data and get a report emailed immeadiatly. Use or don't doesn't cost anything. They only ask for a small donation if it saves you some bucks.
01-31-2016, 06:06 AM
#5
Line Holder
Joined APC: Jan 2016
Position: Retired American B767/757 Captain
Posts: 26
I tried it with your example and got the following results (sorry about the formatting, I cut it out of the PDF hat they send you):
STANDARD METHOD: using (3/4 rate for partial days)
MKE MILWAUKEE, WI Government Rate:61
Sequence: 1-0603 FY2015 GSA Table
PerDiem Start FROM: MSP on 03 Jun 2015 Layover at: MKE
PerDiem End: 04 Jun 2015 at MCO Based on GSA Domestic rates.
0.75 + 0.50 Days yields: $76.25 Running Total: $76.25
MCO ORLANDO, FL Government Rate:56
Sequence: 1-0603 FY2015 GSA Table
PerDiem Start FROM: MKE on 04 Jun 2015 Layover at: MCO
PerDiem End: 05 Jun 2015 at ATL Based on GSA Domestic rates.
0.50 + 0.50 Days yields: $56.00 Running Total: $132.25
ATL ATLANTA, GA Government Rate:56
Sequence: 1-0603 FY2015 GSA Table
PerDiem Start FROM: MCO on 05 Jun 2015 Layover at: ATL
PerDiem End: 06 Jun 2015 at MSP Based on GSA Domestic rates.
0.50 + 0.75 Days yields: $70.00 Running Total: $202.25
STANDARD METHOD: using (3/4 rate for partial days)
MKE MILWAUKEE, WI Government Rate:61
Sequence: 1-0603 FY2015 GSA Table
PerDiem Start FROM: MSP on 03 Jun 2015 Layover at: MKE
PerDiem End: 04 Jun 2015 at MCO Based on GSA Domestic rates.
0.75 + 0.50 Days yields: $76.25 Running Total: $76.25
MCO ORLANDO, FL Government Rate:56
Sequence: 1-0603 FY2015 GSA Table
PerDiem Start FROM: MKE on 04 Jun 2015 Layover at: MCO
PerDiem End: 05 Jun 2015 at ATL Based on GSA Domestic rates.
0.50 + 0.50 Days yields: $56.00 Running Total: $132.25
ATL ATLANTA, GA Government Rate:56
Sequence: 1-0603 FY2015 GSA Table
PerDiem Start FROM: MCO on 05 Jun 2015 Layover at: ATL
PerDiem End: 06 Jun 2015 at MSP Based on GSA Domestic rates.
0.50 + 0.75 Days yields: $70.00 Running Total: $202.25
01-31-2016, 01:53 PM
#6
Gets Weekends Off
Joined APC: Jul 2007
Position: 767 Captain
Posts: 3,988
Originally Posted by zoomie78
I tried it with your example and got the following results (sorry about the formatting, I cut it out of the PDF hat they send you)
Day 1: .75 x $61(MKE) = $45.75
Day 2: $56(MCO)
Day 3: $56 (ATL)
Day 4: .75 x $56(ATL) = $42
So total government rate for this trip is $199.75. If you were paid $100 in per diem by your company for the same trip, your deduction for just that trip would be 80% of $99.75.
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