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    Ray Porteous's Avatar
    Ray Porteous Posts: 1, Reputation: 1
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    #1

    Aug 29, 2008, 10:58 AM
    Per Diem for 40 - 60 % Travel Position
    I am starting for a new firm which supports their equipment at various places worldwide. I well be getting something around $65.00 daily for perdiem which basically covers food and incidentals.
    How is this dealt with in regards to taxes? Most of this travel will be out-of-country. The company does not care how I deal with per diem.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Sep 1, 2008, 11:55 AM
    I suspect that the per diem will be added to your salary as taxable income.

    If so, you can deduct your daily living expenses as an employee business expense, which is an ITEMIZED deduction. The expenses will be more than enough to exceed the 2% of Income rule and to overcome the standard deduction of $5,450.

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