Ask Experts Questions for FREE Help !
Ask
    2step's Avatar
    2step Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 16, 2008, 03:37 PM
    1099 for Per Diem?
    Are people supposed to get a 1099 for their per diem if they were working out of state? Are they supposed to fill out a W-9 for per diem if they are paid as an employee on a W-4 as well?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 16, 2008, 07:35 PM
    Form W-9 is used for the person to provide his name, address and SSN to whomever needs it for tax filing purposes, usually the 1099.

    Per diem can be reported on Form 1099, or on Form W-2, whichever the company decides.

    If they report it on Form 1099 as "non-employee compensation", file Schedule C and claim the per diem expense (as specified in IRS Pub 1542) to offset the per diem reimbursement. I know it's a pain, but that is the BEST way to handle it.
    mooseye's Avatar
    mooseye Posts: 6, Reputation: 1
    New Member
    		  
    #3

    Jan 30, 2008, 02:09 PM
    Quote Originally Posted by AtlantaTaxExpert
    Form W-9 is used for the person to provide his name, address and SSN to whomever needs it for tax filing purposes, usually the 1099.

    Per diem can be reported on Form 1099, or on Form W-2, whichever the company decides.

    If they report it on Form 1099 as "non-employee compensation", file Schedule C and claim the per diem expense (as specified in IRS Pub 1542) to offset the per diem reimbursement. I know it's a pain, but that is the BEST way to handle it.
    If the per diem is included in box 7,form 1099, and there is no distinction from hourly wages, what should be reported on schedule C? The IRS allowence or.. I am confused.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 31, 2008, 11:44 AM
    You report the figure in Box #7 as income on the schedule C.

    You then use the rates in IRS Pub 1542 to offset the income against meals, incidental expenses, and lodging.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Per Diem in CA [ 8 Answers ]

I have received a daily per diem from a company I work for in San Francisco. I have now been in CA for a year, but still travel home for a week every month. The company has now taken my Per Diem saying that the new CA law states that after a year of subsistence it can be taxed. I have looked for...

Per diem [ 2 Answers ]

Can per diem be paid to employees who commute 40 miles or more to work, but do not stay away from home overnight? If so is this non taxable and if so, are receipts required? Or is the amount paid all taxable

1099-G and 1099-INT, filing as a non-resident [ 1 Answers ]

Hi, I am a citizen of India and filing my taxes as a non-resident for 2006. 1.> I received 1099-G of my 2005 state tax refund. In my 2005 federal tax return I had used the standard deduction on line 11 of 1040NR-EZ i.e "Itemized deductions" line since it is entitled to students from India. Is...

Per Diem for Contractor on 1099-Misc [ 3 Answers ]

I am a Canadian Citizen came from Canada to VA state for a short term 2 months contract which was further extended to 6 months, in 2006 I was paid hourly rate, and my pay was on 1099-misc form Question 1) Can I claim per diem as when I asked from my employer, he told me that you can do so in...

Per Diem [ 1 Answers ]

As an employer, we pay per diem. I know I do not report it on their 1099's, but where would I claim it on our company tax return?

View more questions Search