I am currently working in Guam as a nurse, how do I file for per diem deductions from taxes that my employer does not cover? They give us a small living stipend that covers rent only--how do I deduct for meals, car, phone, clothing, entertainment, etc?

If you work under Form 1099-MISC as a contractor, you deduct those costs (enterainment is NOT deductible) on your Schedule C.

If you ae working under a W-2, it becomes a LOT harder, because you must claim the costs on Form 2106, reduce the expenses by 2% of your Adjusted Gross Income, then claim the costs as an ITEMIZED deduction.

PLUS, once your expenses hit a certain income level, the Alternative Minimum Tax kicks in and negates the beneift of the deduction.

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