Per Diem

[photoman]

I have a plumber that worked out of town for 2 months last year. He was not reimbursed for motel, meals or gas or milage. He drove about 150 miles from his home to the job and of course came home some weekends. He basically ate out every night. He ask if I could give him the Per Diem rate. In my research I'm not sure I can give him Per Diem. It looks to me like the employer must have a plan. It seems I should just give him motel, meals and milage on the 2106 but not based on Per Diem. Does this seem like I am correct in my thinking.

[BOB W]

I have a plumber that worked out of town for 2 months last year. He was not reimbursed for motel, meals or gas or milage. He drove about 150 miles from his home to the job and of course came home some weekends. He basically ate out every night. He ask if I could give him the Per Diem rate. In my research I'm not sure I can give him Per Diem. It looks to me like the employer must have a plan. It seems I should just give him motel, meals and milage on the 2106 but not based on Per Diem. Does this seem like I am correct in my thinking.

If the employer HAS a plan for reimbursement, the employee is required to get reimbursed from the employer. IRS will not allow a tax deduction if reimbursement is available.

If there is no reimbursement plan from employer, the employee is expected to pay all costs. When this happens, employee either takes actual expenses or per diem.

I'm not sure where you read what you are stating.

[AJsTax]

Individual can take

per diem for meals and incidentals. must take actual for lodging. Hope he has a good log because he has a very large deduction owed to him.

[Gretel]

...and SMR for mileage or actual expenses, whichever is better.

[photoman]

Thanks for the responses and Additional Question

This is my second year at preparing and I have only had a few clients and they had temp jobs out of town , but no overnight. I seemed to somewhere in my study of this thought determined that the employer must offer a plan in order to use the per diem.
Please tell me if you agree with my understanding of this now after more review and looking back at some older post.

1. I can use Per Diem on an employee for unreimbursed expenses even if the employer does not have a reimbursement plan or reimburse the client.

2. I can use the Per Diem for both lodging and m&ie .

3. If i use the milage for vehicle I can use the milage from his main home to the job and back one time and then use the milage from the motel to and from job while staying at the temp location.

Please let me know any comments

I enjoy all 3 of your post and actually daily look at some of your other post. There is a lot to be said about your experience and length of time in the business