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    chuck3737's Avatar
    chuck3737 Posts: 1, Reputation: 1
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    #1

    Nov 30, 2010, 01:20 PM
    Is per deim taxable.
    My son is adhd bipoler and has odd.the school he went to sead that they could not transport him because he is so violent.thay sent him to a special school.the school paid for the car we transport him in. it is 104 miles a day I drive him.I have a contract with the school that says they will pay me 50.00 a day to transport him.and in the contract it clearly stats per deim. Now they want me to fill out a i9 tax form and a 1099.is this a breach of contract.the money gos 4 gas and upkeep on the car.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Nov 30, 2010, 02:15 PM

    This sems a bit odd - they sem to be treating you as an employee or contractor of the school (that's why the need the I9, so you can be legally hired), and have given you a per diem to cover your commuting costs to work. You should be filing expense reports with the school to document your actual travel costs, and then they should reimburse you for those costs - are you doing that? Per diems are tax-free only if the job is considered to be temporary (meaning expected to last no more than 1 year). Otherwise it's taxable.

    I am surprised that they are treating this as a per diem, as opposed to reimburseent for your out of pocket expenses. I guess this simplifies their book-keeping. Someone else may have a better idea, but I suppose you could file schedule C as being self-employed, and deduct the costs you incur for performing your job as business-related expenses. At least that way you won't owe any taxes on it.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Dec 2, 2010, 03:34 PM
    I agree with ebaines that it seems odd on how they are treating you as a contractor.

    I also agree with his idea of completing Schedule C to document the travel expenses so you would owe no tax.

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