We pay travel expense to our contractors with a per diem for meals. It is my understanding that if the contractor provides receipts, then it is not considered taxable income and you do not need to report it on their 1099. The per diem is based on the location traveled per the GSA website. Is this considered 1099 MISC income?

Please advise.

Thanks

There are two aspects of your reimbursement: Accountable and NOT Accountable.

The Accountable portion is the airfare and hotel for which you get receipts from the contractors. That portion is NOT taxable.

The NOT Accountable portion is the meal per diem. That part IS taxable, but if the contractor claims the same per diem on his Schedule C, he will get a 50% deduction.