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Does per diem pretty much cover taxes?

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Does per diem pretty much cover taxes?

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Old 12-07-2010 | 06:48 AM
  #31  
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From: Captain 121
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Originally Posted by Delta1067
Per diem is income. Although not w-2 iincome, it is tax free money coming into my pocket. To me that = income. Furthermore, it meets the basic definition of "income". Last year I made $4,600 in per diem tax free. For me to net $4,600 I would have had to have grossed approx $7,000. PLUS, when I itimized my per per diem on my tax return I got me an extra $900 on my refund. So my "realized" income when it comes to per diem is the same as had I made an extra $7,900 of 2-w earnings. The beauty is is that it is all tax free. I come out way ahead on mine and so will you unless you really spend/plan foolishly.
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