Per Diem for contrctors, how to write it off.
I am a contractor for company A. I travel to provide services for their client companies.
Company A reimburses me for meals at flat rate $42 a day for domestic and international traveling. Company A included all the reimbursement amounts in my 1099 form as part of payments to me.
Questions:
1. Is it correct to report per diem paid to me on Form 1099 which makes these payments taxable? Per Diem should not be taxable by definition.
2. If it is correct, can I write off this per diem amount at the same rate $42 or I can write off legal maximum for each location.
3. I do not have all the receipts to cover $42 a day. Do I have to write off what I can prove I spent or I still can write off legal maximum?