Paul:
If your company uses an
accountable plan (you must submit an expense report against which your expenses are reimbursed), then the reimbursement is considered tax-free.
However, it looks like your company uses an
non-accountable plan (they pay a set amount each day with no accounting for how they money is spent). In that case, the reimbursement is considered taxable for income tax purposes.
Unfortunately, meals are only deductible on Form 2106 on a 50% basis. Further, you have to meet the 2% AGI floor and claim all the expenses as an itemized deduction. It is not fair, but no one has EVER said the U.S. income tax system is fair.
If you need professional tax help on this or other issues, contact me at
![[email address]](http://www.askmehelpdesk.com/?emailimage=1eed3809d833e77cf5b9ec55bf2bce6d)
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