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    divya4753's Avatar
    divya4753 Posts: 5, Reputation: 1
    New Member
     
    #1

    Feb 10, 2010, 12:20 PM
    Is the Federal Per Diem for meals 50%, 80% or 100% Non Taxable for 1099 employees
    Contract employees receive a 1099 that does not have separate boxes for pay and federal per diem. Business meals are generally allowed at 50% . The per diem is different and may be 100% allowed for contract employees out of town for under one yr.
    I can not find a clear answer in the IRS publications (17,1542,463,535 and topics 511 and 512) for contractors. Have these regulations changed recently?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Feb 11, 2010, 03:18 AM

    If per diem is included in your 1099-misc, then take deduction on schedule C or C-EZ (Form 1040).
    divya4753's Avatar
    divya4753 Posts: 5, Reputation: 1
    New Member
     
    #3

    Feb 11, 2010, 06:38 AM
    Where on the schedule C do you take this?
    Do you subtract it from the gross income at the top or as a misc. deduction below?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Mar 5, 2010, 03:11 PM
    On the MEALS line.

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