Log in

View Full Version : Is the Federal Per Diem for meals 50%, 80% or 100% Non Taxable for 1099 employees


divya4753
Feb 10, 2010, 12:20 PM
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
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
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
Mar 5, 2010, 03:11 PM
On the MEALS line.