[Shwethaa]

Hi,

My Employer used to give me a perdiem (actually per hr) as 10/hr (cutting from my pay). I work in Missouri (since 1 year) and my employer location is in Ohio.
Recently, I received a mail from him saying:
Employer: " As per latest IRS instructions, we are not supposed to pay Per Diem until unless you do long distance travel to work every week. Moving forward please provide evidence that you traveling to you work every week. Evidence could be your flight tickets/residence lease agreement etc. Please let me know if any questions."

So am I not eligible to get the perdiem amount as I used to get earlier?:confused:
(I recently got an offer to move my H1 to primary vendor as fulltime employer but didn't as my employer threatened me showing the non-competent agreement I've signed. I feel that he is removing my perdiem amount from my pay as some grudge may be..??:()..so just want to confirm.

Thanks in advance...
Shwethaa

[MukatA]

You employer may reimburse you a fixed daily amount for your lodging, meal, and incidental expenses when you are away from home on business.
If you do not stay overnight away from your tax home, you are not eligible for per diem.

Also even if your employer is paying you for travel expenses, it must be reported as income unless you are paid under accountable plan.

[Shwethaa]

Thanks for the clarification Mukata...
That helps..!

[MukatA]

If you have to report the travel expenses received from the employer as an income, then you can claim your business related expenses as itemized deduction on schedule A (Form 1040).