| “Can I claim my mileage as per diem from my employer?”---->No, you CAN’T claim your mileage from your ER as per diem; generally speaking, the per diem allowance applies only to meals and lodging and other incidentals. your ER (may) reimburse(s) your mileage and provides a per diem for other travel expenses,i.e., meals,lodging and incidentals if you incur them. For example, your ER reimburses your mileage instead of requiring actual expense records. Your ER who reimburses you for travel expenses using an accountable plan can choose a per diem method of substantiation. The per diem is common in business, where the employer picks up expenses of an employee. The purpose of a per diem allowance is to cover expenses incurred by the employee while travelling on company business. Per diem is NOT taxable, as long as the intent is that the assignment is of short duration - meaning less than one year for an I.C. If the assignment was to extend beyond a year then it could become taxable income. The max per diem rate is dependent on precisely where the assignment is, and in some cases on the time of year. You can claim the difference between the standard rates and the amount reimbursed if you itemize your deductions on Sch A of 1040. The per diem allowance covers your round-trip travel time. Round-trip travel time from your home or office to the site of the function includes only your actual travel time. Time taken in transit for personal reasons is not covered. The travel reimbursement will cover the cost of the least expensive means of transportation available.As you choose to drive and the cost claimed is more than air travel would have been, your reimbursement will be limited to that airfare plus ground transportation cost and parking.
Please go to IRS Website and find the most recent IRS Pub 1542,Per Diem Rates.
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