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    masiero's Avatar
    masiero Posts: 1, Reputation: 1
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    #1

    Feb 17, 2011, 11:03 AM
    Independent contractor per diem
    I am a freelance Travel Director, and work for various companies. All companies either add my per diem on my 1099-MISC or they don't. The per diems for every company that I freelance for are a set rate for any city USA, and do not fluctuate per destination unless it is international travel. I do not have to show receipts for meals, it is just given in a lump sum. I am itemizing.

    Scenario A: My per diem is not added to the 1099, but I am entitled to more for the cities I have visited than they gave me. Can I subtract the difference from my net pay and report that total?

    Scenario B: My per diem is added to the 1099 as income, and I am entitled to more than they gave me. Can I subtract the total per diem per city from my reported income on the 1099?

    I am worried if I put a different amount that shows on my 1099 in the "box" that I might get a nasty note from the IRS. Where can I report this discrepancy?

    Thank you!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 9, 2011, 01:57 PM
    In either case, use the per diem rates specified in IRS Pub 1542 and claim thoseexpenses on the Schedule C.

    Add the per diem reimbursement to your gross income on Schedule C even if it is NOT added to the Forms 1099-MISC provided by the companies.

    That is the correct and accurate way to report both the per diem income and your expenses in this matter.

    If you need professional help filing your return, email me at [email protected].
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