wages and per diem on 1099?

mooseye · #1 Jan 30, 2008, 01:32 PM

Quote:
Originally Posted by AtlantaTaxExpert
Form W-9 is used for the person to provide his name, address and SSN to whomever needs it for tax filing purposes, usually the 1099.

Per diem can be reported on Form 1099, or on Form W-2, whichever the company decides.

If they report it on Form 1099 as "non-employee compensation", file Schedule C and claim the per diem expense (as specified in IRS Pub 1542) to offset the per diem reimbursement. I know it's a pain, but that is the BEST way to handle it.

If the per diem is included in box 7,form 1099, and there is no distinction from hourly wages, what should be reported on schedule C? The IRS allowence or...? I am confused.



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