correct; Instead of deducting actual expenditures, taxpayers can use the per diem amounts for food and lodging in revenue procedure 93-50.
You only can take a tax deduction for work-related lodging expenses incurred outside of your business tax home. The IRS defines your business tax home as the municipality or general area in which you primarily work; For instance, if you own a home in LA CA, work in an office full time in San Diego and rent a room in San Diego for your work lodging, you cannot take a deduction for your San Diego lodging expenses. In certain cases, an employer may pay you a fixed travel allowance each pay period as part of your wages. In such cases, your employer typically requires you to pay your own travel costs, with no reimbursement arrangement. However, the IRS allows you to itemize your travel expenses to take a tax deduction.
If you receive a per diem or reimbursement that does not cover your entire travel costs, you can claim a tax deduction for qualified out-of-pocket expenses. In such cases, the IRS requires you to report your reimbursement or per diem as earned wages, but allows you to take a tax deduction by itemizing your expenses. These deductions are subject to the Internal Revenue Service's 2 %rule, so you can only deduct the total amount that exceeds 2% of your AGI. If your per diem or reimbursement covers all of your lodging and travel expenses, you cannot take a tax deduction. lodging costs associated with moving expenses are tax deductible directle on line 26 1040 not on sch A of 1040.