per diems - taxable or not?

joek · #1 (**permalink**) 08-11-2010, 08:29 AM

I am working away from my home for the next 2.5 years, as a part of relocating, I am given a per diem that is in line with CONUS rates for where I am relocated to. Is this a taxable item that will show as income? If so, can you deduct this item as it is reimbursement for actual incurred costs?

Thank you in advance.

TaxGuru · #2 (**permalink**) 08-12-2010, 11:58 AM

Per diem pay is not generally taxable especially if it confirms with CONUS rates. The IRS has provided a special provision in the tax code that would preclude these payments from being taxable!

joek · #3 (**permalink**) 08-12-2010, 12:29 PM

Quote:

Originally Posted by TaxGuru

Per diem pay is not generally taxable especially if it confirms with CONUS rates. The IRS has provided a special provision in the tax code that would preclude these payments from being taxable!

Can you steer me in the direction of where I can foind this reading material?

Thanks

TaxGuru · #4 (**permalink**) 08-12-2010, 03:52 PM

Please refer to the following website for more information regarding the Per Diem rules. Additionally, you will be "find the current Per Diem rates in the continental United States ("CONUS Rates").

Per Diem Overview