- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Per Diem & Tax Treatment
Posted on 5/22/17 at 11:51 am
Posted on 5/22/17 at 11:51 am
I'm looking to get some more information on per diem and tax treatment.
Looking at a potential job out of state that is paying $120 a day per diem. I currently rent now here in the New Orleans area and would be moving to that location for 2.5 years. Would I be taxed on the per diem for the whole 2.5 years? If so, is it taxed at the same rate as ordinary income?
Its my understanding that you have to maintain a local home for per diem to be non-taxable and it will only be non-taxable for the first year (if job is longer than a year).
Looking at a potential job out of state that is paying $120 a day per diem. I currently rent now here in the New Orleans area and would be moving to that location for 2.5 years. Would I be taxed on the per diem for the whole 2.5 years? If so, is it taxed at the same rate as ordinary income?
Its my understanding that you have to maintain a local home for per diem to be non-taxable and it will only be non-taxable for the first year (if job is longer than a year).
5
Posted on 5/22/17 at 12:15 pm to JasonL79
Per diet no taxes, I got it for 2 years when on BP spill - food only since they provided housing.
Now, make sure you fill out and submit whatever form it is for your per diem. Don't let them just pay you it as wages or you will owe taxe. It should be separated out.
A co-worker is dealing with the tax implications now on just getting reimbursed for his expenses, they are treating it like regular income now, and he's paying up a bunch of taxes. Yeah he's mad.
They just switched him to per diem which is what he originally wanted in the first place.
Now, make sure you fill out and submit whatever form it is for your per diem. Don't let them just pay you it as wages or you will owe taxe. It should be separated out.
A co-worker is dealing with the tax implications now on just getting reimbursed for his expenses, they are treating it like regular income now, and he's paying up a bunch of taxes. Yeah he's mad.
They just switched him to per diem which is what he originally wanted in the first place.
Posted on 5/22/17 at 2:27 pm to JasonL79
quote:
Looking at a potential job out of state that is paying $120 a day per diem. I currently rent now here in the New Orleans area and would be moving to that location for 2.5 years. Would I be taxed on the per diem for the whole 2.5 years? If so, is it taxed at the same rate as ordinary income?
Its my understanding that you have to maintain a local home for per diem to be non-taxable and it will only be non-taxable for the first year (if job is longer than a year).
Completely non-taxed for first year.
Will not even show up on W2.
After 1 year, it is supposed to be taxed, but I have had a company still pay it to me untaxed and unrecorded.
Posted on 5/22/17 at 3:16 pm to JasonL79
Per Diem is tax free. You should never pay taxes on this.
Posted on 5/22/17 at 3:50 pm to trident
quote:
Per Diem is tax free. You should never pay taxes on this.
Its supposed to be a temporary business expense, therefore not taxed because its an expense. I can see how after a year it could become that though but I'm not a CPA.
Honestly, if you have a CPA it may be something to ask them about as that's $3600/ month so it would add up. If it does become taxed, a CPA could assist you in expensing out what needs expensing ahead of time so as not to make a huge mess for yourself.
Posted on 5/22/17 at 4:01 pm to JasonL79
I worked at one location out of state for 3 years with tax free per diem and I didn't own a home back here in Louisiana. We had a couple of projects in that facility going on my company always let me work at least two projects in a year so I'd get paid from two different charge numbers. Also I'd get multiple bonuses a year from both our Louisiana location and our local office where I was working. As long as I had several W2's come tax time I was good to go according to my CPA.
Posted on 5/23/17 at 6:09 am to trident
quote:
Per Diem is tax free. You should never pay taxes on this.
Most of the oil and gas staffing firms I've dealt with in the past start taxing after a year. According to the IRS code if the job or project is longer than a year it is deemed permanent and is taxed as ordinary income.
I spoke with the hiring company and they said they would increase the rate to cover for the taxed portion after a year. So that is good.
Posted on 5/23/17 at 10:50 am to JasonL79
quote:
JasonL79
Do you mind sending me an email? I have a couple of questions for you.
This post was edited on 5/23/17 at 10:35 pm
Posted on 5/23/17 at 8:23 pm to Girth Donor
quote:
Do you mind sending me an email? I have a couple of questions for you.
chawbruh@gmail.com
Emailed you.
This post was edited on 5/24/17 at 5:26 am
Posted on 5/24/17 at 8:27 am to JasonL79
Most companies if your assignment is over a year you get taxed right at the start, that's the law. You can deduct what you pay for expenses in the new location. Sometimes a company will give you an 11 month assignment and then extend after and you would then start paying taxes. I traveled with work for 8 years in 5 locations, I know.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News