Can a skilled craftsman claim Per Diem for his work away from his tax home? He was away for less than one year, and over 300 miles from his home. He does not have receipts, but can prove by his pay records and a letter from the employer that he did live temporarily near the jobsite. He received no reimbursement from his employer. Also can he claim mileage to and from his living quarters to the jobsite?
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With these situations it's important to verify the tax home and the temporary work. The tax home is generally your regular place of business or post of duty regardless of where you maintain your family home. So as long as the regular place of business is that location 300 miles away from the temporary job it sounds like that is fine. If there was no regular place of business it becomes more complicated.
Then is the job assignment a temporary assignment or job? That will depend more on the nature of the temporary job assignment. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. When they started the job was it expected to last 1 year or less? Or was it expected to be more permanent and then it ended up becoming temporary later on?
Assuming those are not an issue, per diem can be used for deducting meals & incidental expenses. For lodging expenses they will need to use the actual expenses. -
thanks!
Your information confirms what I was thinking. Also I did a search for per diem in the TaxLibrary and confirmed. I love the forum and the library! Thanks!Comment
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FWIW I fully concur with David1980's response above.
Standard, IRS-accepted per diem rates vary from location to location, and many states have different rates for certain counties and/or cities within that state. The GSA publishes the rates and updates them every year. Here's a link to the GSA's web site, which I trust will not violate Brad Imsdahl's recently announced linkage rules:
This web site can be a little confusing and tricky to use the first time or two, so read the instructions for using it carefully. Also note that if the rates change, you have a choice of using the new rates starting on October 1st or continuing the old rates for the rest of the calendar year. For your client you will be using the M&IE rates.Roland Slugg
"I do what I can."Comment
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