Is it possible to deduct the difference between the government per diem rates and what my company actually pays? i.e. My company pays $100 a day for working in Atlanta but the 2009 government rate is $190 a day. Can I deduct $90 per day that I work in Atlanta?
Start over. The $190 rate is BOTH lodging and food and is only for government employees.
If you spend more than $100 a day on *both* food and lodging, you could theoretically take a deduction, but it's difficult and not likely to get you much.
Eg, the meal per diem is $49. Your hotel bill (which you have the copy of) is $90. On the form 2106, you'd list $90 for the hotel, $24.50 for food (you only get to claim half) and then subtract the $100 from the company. That leaves an excess of $14.50 for you tax return.
You do this, for what, 60 days and have $870 for the 2% section of the schedule A--after you subtract 2% of your AGI, anything that's left is added to your itemized deductions and if you can itemize, it lowers your taxes.
(Hint, in 17 years of business travel, I *never* was able to itemize my excess expenses.)
I just spoke with 2 different co-workers and they've been deducting the difference for a few years now. One of them says he got the advice from his H&R Block rep. He said last year alone he got just over a $10K reimbursement. Is he just asking to be audited or will he get away with it? Report Abuse
No. That would be a marvelous scam to get the rest of us paying your non-existent expenses. You might be able to use it as an argument to get your company to raise its rates, but not to claim it. If you think it is wonderful, go to work for the government.
With a car, you can claim a specific amount per mile, as an alternative to keeping detailed records of car expenses, but that is spelled out in the tax instructions. Claiming higher per diem and adding in what you were paid is not.
No, but if you spend more than the reimbursement on allowable expenses, you might be able to take some of the excess as an itemized deduction if you itemize - if you don't, it's your nickel.
only if you paid the other$90 out of pocket.