I work for a company where I get paid by the load and when I spend the night out of town in a motel my company pays me $100 per diem or if I spend the night in the sleeper i get $40. I was wondering since I get paid per diem for my motels or nights spent in the sleeper can I claim my expenses on my taxes?
per diem question
No, you can't.
There is a way to recover monies that don't meet the allowance. Only if you took the $40 route. But it would be a lesson in frustration to bother with it, based on your company policy. Which is REALLY good IMO.
Personally, I would take the $100 route and stay in the motel, and pocket the change. I'm guessing you get the $100 regardless of the motel cost. So long as you provide receipt.
Hell, if my company offered $100 a night. I would be in a motel 7 nights a week. And actually pocket an extra $3-400 a week.
who pays for the motel? you pay it out of the 100 dollars?
you are allowed as a employed driver 80 per cent of 59 dollars a day for expense. if the motel expense leaves less than that you could claim part of that daily deduction.
but you have to itemize deductions for that. as one said does that money show up and you are taxed on your w-2 or not?
Yeah I pay for the motel then just call my boss tell him how many nights I spent in a motel for the week then they send check for those nights x $100
This summer I will be spending a lot of time away from home so the per diem is really nice! I usually get a motel that I can earn points from and that doesn't go over 60 bucks a night. When I earn free night stays with my choice rewards membership thats just a flat $100 in my pocket.
Thanks for the info guys I really appreciate it!
----- anyway, back to the question
Where I work hotels are paid for, we are paid a perdiem and receive company provided meals... and can still use the federal perdiem deduction with success. (as confirmed by numerous tax attorneys and 100's of thousands of employees in this exact same field to substantiate this claim)
My daily perdiem rate is much lower, $40.80. I'm only intimately familiar with using the Federal Standard perdiem rates for MI&E, but if you are required to cover the cost of the hotel, and it costs $100 for a hotel, then you should still be eligible to use the standard rate for meals.
Food for thought:
Hotel $74, you are paid $100. Tax code says you must provide receipts for all expenses over $75. So now you have a $26 surplus in perdiem paid to you. using the standard rate, if you are in a big city, the max is $71, so you still have $71-$26 in deductions for that day.
I'll have to discuss this scenario with a tax attorney and see why they think. We are required to turn in all our hotel receipts, but all of our hotels are over $75.