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    pinkidoo's Avatar
    pinkidoo Posts: 2, Reputation: 1
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    #1

    Dec 21, 2009, 09:02 PM
    Is per diem taxable when out of state working
    This is my situation, I am working out of state and I am receiving $50 a day per diem for food, etc... is this taxable? I alos would like to know how much tax would be taken out of $3000?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Dec 22, 2009, 10:58 AM
    The taxability of the per diem reimbursement depends on the type of plan used by your employer.

    If the plan is an accountable plan (meaning that you must submit periodic expense reports to justify receipt of the money, then the per diem is NOT taxable because it is reimbursement for specific, identified expenses associated with your travel.

    If the plan is a non-accountable plan (no requirement for any type of expense report), then the per diem will probably be considered to be taxable income in terms of state and federal income taxes (but NOT FICA taxes).

    If taxable, the amount withheld will be driven by your status and the number of allowances claimed on the W-4 (and state-equivalent documents) submitted to the employer by you.
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