A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging, meals, and incidental expenses when you are away from home on business.
Therefore your per diem deduction is $2,800 (80% of $3,500) which at a tax rate of 15% equals $420 in your pocket. International crewmembers can easily see a $10,000 deduction which is $1,50 Per Diem Deduction is actually a misnomer that pertains to airline pilot tax preparation and flight attendant tax preparation. A more correct name for per diem deduction would be meal expenses and incidental expenses tax deduction. The term Per Diem Deduction is not a term that pilots and flight attendants will find in the tax code, yet this term describes a very lucrative tax write-off for flight crews. This deduction is limited to the regular federal per diem rate (for lodging, meals and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees and tolls. Claim these expenses on Form 2106 or Form 2106-EZ and carry them to the appropriate line on Form 1040. If the per diem amount is not sufficient to cover employee business expenses, then the employee may take a deduction for unreimbursed expenses. File Form 2106, showing both the documented expenses and the amount of per diem received as a reimbursement. Form 2106 - Per Diem Meals Deduction. To enter meals as an unreimbursed employee expense on Form 2106: 1  From within your TaxACT return (Online or Desktop) click the Federal Q&A tab. 2  Click Itemized or Standard Deductions to expand the section, then click Unreimbursed employee expenses-Subject to 2% of AGI limit. In the view of the IRS, an employee who receives a per diem allowance for business travel is receiving reimbursement from the employer. Any per diem allowance over and above the expenses reported by the employee is income and is reported on the employee's W-2 form. A more correct name for per diem deduction would be meal expenses and incidental expenses tax deduction. The term Per Diem Deduction is not a term that truckers will find in the tax code, yet this term describes a very lucrative tax write-off for truckers. A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging, meals, and incidental expenses when you are away from home on business. (The term incidental expenses is defined in chapter 1 under Standard Meal Allowance. The IRS allows people who travel for business to deduct their meal expenses from their income. The Per Diem rate is set by the IRS. The current rate (as of October 1, 2015) is $63 per day in the Continental US and $68 per day while in Canada. You may hear the amount of the deduction quoted as $50.40.
http://www.watsoncpagroup.com/per-diem-methods-and-rate-tables/ http://aviationtaxglossary.com/per_diem_deduction/ https://www.irs.gov/taxtopics/tc511.html http://finance.zacks.com/per-diem-tax-deductions-working-outoftown-3194.html https://www.taxact.com/support/14308/form-2106---per-diem-meals-deduction/ http://www.ehow.com/about_5270829_per-tax-deductions-working-outoftown.html http://truckertaxglossary.com/per_diem_deduction/ http://www.taxmap.ntis.gov/taxmap/pubs/p463-014.htm http://www.atbsshow.com/perdiemtaxes
per diem deduction