Client works for a construction company and travels to various jobs both in and out of state. When they are required to be away overnight, employer pays them $35 a day for meals. Employer issued a 1099-MISC with an amount in box 3 for the total from last year. Not sure why they chose the 1099 route instead of including on W-2, but that is what they do.
The more I think this over, the more confused I get. Here is what I am thinking:
1. The amount from 1099 must be included as income on Line 21.
2. Employee could file form 2106 and claim per diem or actual meals, then reduce by the amount of the reimbursement, and then take 50% of this amount on line 21 of Sch A.
Does this sound right? Thanks.
The more I think this over, the more confused I get. Here is what I am thinking:
1. The amount from 1099 must be included as income on Line 21.
2. Employee could file form 2106 and claim per diem or actual meals, then reduce by the amount of the reimbursement, and then take 50% of this amount on line 21 of Sch A.
Does this sound right? Thanks.
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