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JunKzrus · May 5, 2007, 10:44 AM

Hi

I would be transferred to Plano, TX on an L1 VISA for a period of ~2 years. I would only be paid charges in US for housing etc. (actuals), per-diem (1600 per month) and car-expenses. I will continue to be paid my basic salary at my primary place of employment.

What are the tax implications? Would I be required to pay taxes on the per-diem / house charges and car-expenses?

I tried to find out about this on several websites (google,IRS/GSA), but could not find information of much help. Any pointers to sites would be really appreciated.

Thanks

Regards
Jun

AtlantaTaxExpert · May 5, 2007, 09:07 PM

Since you will be in the U.S. for over 183 days, your salary IS subject to U.S. income taxes.

The per diem and other charges may also be subject to taxes unless they are on an accoutnable plan.

JunKzrus · May 8, 2007, 10:25 PM

Thanks for the quick answer. What if the per-diem amount is lower than the GSA specified standard? Will it still be taxable? Will the house and car-rentals (at actuals) also be taxable?

Normally, my company would put me up in a hotel and provide cab service- but since it is a longer duration of time; they're opting for a house & car on rent.

Regards
Shishir

AtlantaTaxExpert · May 9, 2007, 12:57 PM

Per diem is generally taxable, because, by definition, it is NOT an accountable plan.

However, if the per diem is taxable, you can at least partially offset it by claiming the GSA-specified per diem as an employee business expense.

JunKzrus · May 13, 2007, 03:47 PM

Originally Posted by AtlantaTaxExpert

Per diem is generally taxable, because, by definition, it is NOT an accountable plan.

However, if the per diem is taxable, you can at least partially offset it by claiming the GSA-specified per diem as an employee business expense.

Thanks a ton. Does that mean that if the expenses are below the GSA specified per-diem, then there should not be a problem at all :)

Regards
Jun Kzrus

RetiredNavy · May 13, 2007, 05:12 PM

Originally Posted by JunKzrus

Hi

I would be transferred to Plano, TX on an L1 VISA for a period of ~2 years. I would only be paid charges in US for housing etc. (actuals), per-diem (1600 per month) and car-expenses. I will continue to be paid my basic salary at my primary place of employment.

What are the tax implications? Would I be required to pay taxes on the per-diem / house charges and car-expenses?

I tried to find out about this on several websites (google,IRS/GSA), but could not find information of much help. Any pointers to sites would be really appreciated.

Thanks

Regards
Jun

I am a US citizen and have receive per diem, lodging and auto expenses both from the Government and as a Department of Defense Contraactor and have never had tax's taken for those expenses. Those expesnses are considered business expenses and not as personal income tax, thus is falls into the coroporate accounting books.

AtlantaTaxExpert · May 14, 2007, 09:23 AM

Per diem as paid to military and defense contractors IS considered as part of an accountable plan because it follows the GSA-specified amounts.

Per diem paid by corporations often do NOT follow the GSA-specified amount, which means they have to meet other requirements to be considered part of an accountable plan.

Ve cc · Oct 27, 2007, 11:04 AM

Originally Posted by AtlantaTaxExpert

Per diem paid by corporations often do NOT follow the GSA-specified amount, which means they have to meet other requirements to be considered part of an accountable plan.

Hi. I am an S-corp paying myself. I have a temporary project in a different state. Can you direct me wher to find information on the requirements to be part of an accountable plan? Thanks.

The Texas Tax Expert · Oct 27, 2007, 03:05 PM

Since the person was going to be in Plano for 2 years, the per diem would be fully taxable. That's because the assignment is no longer temporary.

AtlantaTaxExpert · Oct 28, 2007, 07:04 AM

Go to Internal Revenue Service for the accountable plan requirements.