Per Diem

[Duane Anderson]

I have a client who was paid $15,000 in per diem in 2009 which is included in box 1 of his W-2. What is the best way to report this and be able to reduce his reportable wages for that amount....Thanks, Duane Anderson

[Jiggers]

Per Diem on W-2?

I have a client who was paid $15,000 in per diem in 2009 which is included in box 1 of his W-2. What is the best way to report this and be able to reduce his reportable wages for that amount....Thanks, Duane Anderson

1. Why was it included on the W-2? No accountable plan?
2. You report the expenses on the 2106. That carries to Schedule A, subject to 2% haircut. Assuming he can itemize?

Remember that meals are subject to 50% cut. Lodging must be actual expenses.