Per Diem?

[RayT]

Client lives in Achorage, AK and company is based in Anchorage. Travels throughout AK for employer. Employer pays transporation and lodging, plus $20/day meals. Client is not required to account for costs. As I understand, client may claim the federal meals rate for the area, which is higher than $20/day, at 50% minus employer payments, on Form 2106. Am I correct?

Thanks for comments.

[solomon]

Client is not required to account for costs.

This does not appear to be an accountable plan unless client substantiates place, business purpose, and time. Are any of these expenses included on client's W-2?

At any rate, I do not think client can deduct more than actual cost above the $20 for meals. Someone else can chime in here.

[rgtaxservice]

...

The client would use the per diem rate (less 20/day) in place of receipts. This would still require substantiation. TTB-8-2

I'm not sure what the per diem for AK is.

[joanmcq]

And you only get half of the per diem as a deduction.

[Jesse]

But if a nonaccountable plan the $20 should be included in box 1 wages so you would not decrease the per diem by the $20, (but still @ 50%),correct?

[solomon]

But if a nonaccountable plan the $20 should be included in box 1 wages so you would not decrease the per diem by the $20, (but still @ 50%),correct?

I would agree. That was confusing to me in the OP as to whether it was an accountable or non-accountable plan.

[joanmcq]

Sounds like an accountable plan with a $20/day per diem for meals.