Articles, Blog

TTT Per Diem

February 9, 2020


hey everyone welcome to another tax tip
Tuesday today I’m gonna be talking about per diem and so some of you might be
familiar with it maybe not but basically if you are an employee or better yet a
independent contractor especially those that positions that do a lot of local
work you want to be very familiar with per diem so for those of you that are
not reimbursed or have expenses covered for things like travel and lodging per
diem is really great because a lot of times you’re allowed to go and deduct the actual cost of you know lodging travel meals and
incidentals as well and to them mostly things like dry cleaning while around or
out on the road for example and so you’re allowed to deduct those things
but some people don’t like to keep those receipts and some of them will or they
don’t like or sometimes their costs are so low and the per diem rates are
actually more that it’s better for you to take the per diem rate so what I like
to tell my clients is you know I want to look at both I want to see if your
actual is more versus the per diem rates and then go from there so this website
that I’m showing you right now is gsa.gov and it’s a really great website
so basically and I use this one preparing taxes I go to this website you
can you know click on they’ve on all the way back to 2011 so even if you want to
go and possibly amend your return to see if you can get a better rate using the
per diem so let’s just do 2019 and we’ll do California I won’t put a city at the
moment but you’ll see with you go and search the rates it’ll go and tell you
based on you know thank you where you’re where you’re at so let’s just say
Los Angeles so they say for each of these months for
lodging by month this is how much you get per day for lodging so and then
this down here is for meals and incidentals so you can see sixty six
dollars a month in Los Angeles is quite a bit and then also I want you to notice
the first and last day of travel they don’t give you that full 66 seller
amount they only give you forty nine and a half so just make sure that you’re
cognizant of that when when when calculating everything out but so for a
lot of locum positions usually your hotel then your travel are covered so
the only thing that you having to worry about is really the meals and
incidentals and so now there are certain circumstances where you’re not going to
be eligible for taking the per diem and that’s a whole nother tax tip Tuesday
but basically if you are eligible you’ll want to go and look up you know what
city that you’re working in and then apply these rates and so
the standard rate if you’re if you don’t see your city here I believe it’s fifty
four dollars but basically it’ll tell you of standard
rates sorry fifty-five dollars my not the dollar that’s great um so basically
I mean I know a lot of people when when they’re doing their their local work and
they don’t they don’t spend fifty five dollars a day on meal sentence and then
also I mean you know most of them hardly eat at all you guys are so busy you know
or they get something quick at the hospital so obviously you know looking
at these rates would really beneficial because most of the time they’re
actually going to be higher and then you can take these as a deduction so I hope
that you enjoyed this tax tip and if you did like it please subscribe to my
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little bit more finesse when it comes to your taxes I hope you like I said I hope
you enjoy this and see you next week Thanks

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