Maximize Your Tax Savings: How to Claim Per Diem

How to Claim Per Diem on Taxes: A Guide for Taxpayers

Let`s talk about everyone`s favorite topic: taxes. But specifically, let`s dive into the world of per diem expenses and how you can claim them on your taxes. It might not sound like the most exciting topic, but trust me, understanding per diem and how it relates to your taxes can potentially save you money and headaches in the long run.

What Per Diem?

Per diem refers to a daily allowance that an employer provides to employees to cover expenses while traveling for work. This could include meals, lodging, and other incidental expenses. The IRS sets per diem rates for different locations, and employers can use these rates to reimburse employees for their travel expenses without having to require them to submit receipts for each expense.

How Can You Claim Per Diem on Taxes?

So, you`ve received per diem from your employer for your work-related travel expenses, and now you`re wondering if you can claim it on your taxes. The short answer is yes, you can! However, there are some important things to keep in mind:

  • You can`t claim per diem expenses that were already reimbursed by your employer.
  • You can only claim per diem work-related travel, not personal trips.
  • You will need itemize your deductions on Schedule A of Form 1040 claim per diem expenses.


Let`s say you traveled to Los Angeles for a business conference and received a per diem allowance from your employer to cover your meals and lodging. If the per diem rate for Los Angeles is $71 for meals and $156 for lodging, you can claim these expenses as deductions on your taxes as long as you meet the IRS requirements for deducting travel expenses.

Why Should You Care About Per Diem?

Claiming per diem on your taxes can help you lower your taxable income, which in turn can reduce your overall tax liability. This means more money in your pocket come tax time! Additionally, understanding how per diem works can help you maximize your tax deductions and ensure that you`re not leaving any money on the table.


Year Percentage Taxpayers Claiming Per Diem
2018 12%
2019 15%
2020 18%

Final Thoughts

While navigating the world of taxes can be complex, understanding how to claim per diem on your taxes can be a valuable tool for maximizing your deductions and minimizing your tax bill. Remember to keep accurate records of your work-related travel expenses, and don`t hesitate to seek the guidance of a tax professional if you have questions or concerns. Happy tax-saving!

Per Diem Tax Claim Contract

This contract outlines the legal obligations and responsibilities for claiming per diem on taxes.


This Per Diem Tax Claim Contract (the “Contract”) is entered into on this day __________________, 20__, by and between the party claiming the per diem (the “Claimant”) and the relevant tax authority or agency (the “Authority”).

WHEREAS the Claimant seeks to claim per diem expenses incurred while on business travel for tax purposes; and

WHEREAS the Authority is responsible for administering tax laws and regulations;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. The Claimant shall provide accurate and detailed records of all expenses incurred during business travel, including receipts and other supporting documentation, in accordance with the relevant tax laws and regulations.

2. The Claimant shall submit the per diem claim to the Authority in a timely manner, following the prescribed procedures and formats as stipulated by the tax laws and regulations.

3. The Authority shall review and assess the per diem claim in accordance with the applicable tax laws, regulations, and guidelines, and notify the Claimant of the decision in a timely manner.

4. The Claimant agrees to cooperate with the Authority in the event of an audit or inquiry related to the per diem claim, providing additional information or documentation as requested within a reasonable timeframe.

5. The Authority reserves the right to deny or adjust the per diem claim if it is found to be inaccurate, incomplete, or in violation of the tax laws and regulations.

6. This Contract shall be governed by and construed in accordance with the laws of the relevant jurisdiction, and any disputes arising out of or in connection with this Contract shall be subject to the exclusive jurisdiction of the courts in the relevant jurisdiction.

IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.

[Signature Claimant] [Date]

[Signature Authority Representative] [Date]

Claiming Per Diem on Taxes: Your Ultimate Guide

Question Answer
1. Can I claim per diem on my taxes? Absolutely! Per diem expenses can be claimed on your taxes if you meet certain criteria. It`s a great way to save on your tax bill and make the most of your business travel expenses.
2. What are the requirements for claiming per diem on taxes? To claim per diem on your taxes, you must be traveling away from your tax home and have expenses for lodging, meals, and incidental expenses. Additionally, you must maintain adequate records and receipts to support your claim.
3. How do I calculate my per diem expenses for tax purposes? Calculating your per diem expenses for tax purposes is relatively simple. The IRS provides standard per diem rates for different locations, and you can use these rates to calculate your deductible expenses. It takes the guesswork out of tracking individual expenses and simplifies the process.
4. Can I claim per diem if my employer reimburses me? If your employer reimburses you for your expenses using the per diem method, you generally cannot claim those expenses on your taxes. However, if your employer reimburses you using the actual expense method, you may still be able to claim per diem on your taxes.
5. Are there limits to how much per diem I can claim on my taxes? Yes, the IRS sets maximum per diem rates for different locations, and you cannot claim more than the allowable amount. It`s important to stay within these limits to ensure that your claim is valid and compliant with tax regulations.
6. What documentation do I need to claim per diem on my taxes? To support your per diem claim on your taxes, you`ll need to keep detailed records of your travel dates, locations, and expenses. This includes receipts for lodging, as well as a daily breakdown of meal and incidental expenses. Keeping thorough documentation is key to a successful tax claim.
7. Can I claim per diem if I work from home? If you have a tax home and you are traveling away from that home for work, you may be able to claim per diem on your taxes. However, if you work from home and have no tax home, per diem expenses may not be deductible.
8. Are there special rules for claiming per diem on international travel? International travel may have different per diem rates and rules compared to domestic travel. It`s important to familiarize yourself with the specific regulations for the countries you are visiting and ensure that your claim complies with both IRS guidelines and international tax laws.
9. What if I have a mix of business and personal travel expenses? If you have a combination of business and personal travel expenses, you can still claim the portion that is attributable to your business activities. It`s crucial to accurately allocate your expenses and only claim the deductible portion on your taxes.
10. What should I do if I`m audited for my per diem claim? If you`re audited for your per diem claim, it`s important to have all the necessary documentation to support your expenses. This includes receipts, travel itineraries, and any other relevant records. Be honest and transparent in your dealings with the IRS, and seek professional assistance if needed.

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