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    chiliman1369's Avatar
    chiliman1369 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 18, 2015, 01:40 PM
    Per diem
    My employer has recently started taxing my per diem. Can they do that?
    CravenMorhead's Avatar
    CravenMorhead Posts: 4,532, Reputation: 1065
    Adult Sexuality Expert
    		  
    #2

    May 19, 2015, 07:27 AM
    Depends on the labour laws in your area, but as a rule I don't believe so. When I got perdiem it wasn't taxed. The way that it was looked at was that when you were away there are costs incurred that you can't have control over, food, laundry, having someone come in a feed your cat, or the neighborhood kid coming in to shovel your walk in the winter. It isn't a wage but an allowance because they're putting you out.

    Talk to your local government and see if it is legal, and then fire back at your company.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    May 22, 2015, 08:24 AM
    Let's step back and take a breath.

    Per diem CAN become taxable if it is for a job that exceeds a year in length, because then, in the eyes of the IRS, the job is no longer temporary in nature and the per diem, which is supposed to reimburse the employee for expenses incurred on a temporary job, is just considered to be added taxable compensation.
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