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  • Mar 7, 2010, 02:53 PM
    Can I claim per diem on 1099 tax income??
    Hello experts,

    I recently decide to work as an independent consultant for the first time. I am from Chicago. I got a contract to consult for an end client in Ohio but will get paid from a Florida based company. This agent will pay me an all inclusive hourly rate on 1099 form.

    What I did was to find a temporary apartment in OH close to client location. Durng weekends, I will either drive or fly back to Chicago where my husband and I live.

    I know that I am going to pay HUGE amount of taxes. So I wonder whether I can claim a daily Per diem allowance as my tax deductions??

    I used to talk to a friend she said it might raise some red flags to IRS and suggested that I should go by the receipts for expenses instead. But then I would not be able to deduct for things that I do not have receipts like rent.. Plus, I think daily per diem allowance would give me a bigger tax deduction amount anyway..

    Can experts throw some lights on this question please? If I can claim per diem, then which state should I reference the rate from? Shoud it be Ohio where I work or Florida where the company I get paid is located?

    Thanks much,

  • Mar 7, 2010, 03:04 PM

    What I'm wondering is why you think you won't have receipts for things, like rent. You pay your rent using a check. You enter a memo on the check like: Mar Rent 123 Elm, Columbus OH. Voilą, you have a receipt.
  • Mar 7, 2010, 03:11 PM

    Thank you for a quick response. Yes, for rent, I put in the memo - lodging. And, I asked my landlord and she agreed to signs a receipt I print out with the details e.g. her name, address and the date she receives the payment..

    But since I would mostly run groceries and cook my own foods which I think are non tax deductible.. I would not have meal expenses to deduct the tax then..

    I think if I can claim per diem allowances let say 120$ a day, I think it would just be much easier for me and at the same time would give more tax deduction??
  • Mar 8, 2010, 08:19 PM

    Yes, you can deduct travel expenses that include transportation, lodging and meals. Use Form 2106 or 2106-EZ to figure your allowable expenses that you will claim on schedule C or C-EZ. You can also claim per diem. Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor
  • Mar 9, 2010, 08:17 AM
    Thank you MukatA for your advise and the helpful link. Speaking of per diem, would you be able to reference on IRS form/publication that mention about claiming per diem for a self employed? I just wonder what form I should fill out and the rules I need to follow?

    Any help would be appreciated!
  • Apr 28, 2010, 10:27 AM
    IRS Pub 1542 has all of the per diem rates across the board, whether they are for self-employed person or employees/
  • Jun 14, 2010, 06:20 PM
    Hi Monica,

    I am in the same situation as yours. My questions :

    1- Can you use the max per Diem allowed by IRS Pub 1542 or should you have receipts for any amount up to the IRS limit?

    2- What key city applies? The client company's city or the paying company's city?

    3- If you take the standard deduction in personal taxes, can you still take per-diem to offset income or do you HAVE to itemize deductions in order to take advantage of the per diem offset? OR am I confusing schedule C with 1040?


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