H & R Block and food allowance

You fall under the Transportation part of the Per Diem.

http://www.irs.gov/pub/irs-pdf/p463.pdf

Page 12 (para 5)
page 35.



Day of going/leaving Domicile - 75% of daily rate (currently $59)
Days falling under "overnight rule" - 80% of the daily rate (currently $59)

 

H & R told me it depended on which state you reside in.. In my case it was $61.00 per working 24 hr day, meaning home time or legitimate time off isn't included. You have to keep track/record.. anyway H & R have a list, they can look it up, though I itemize as a company driver

 

All these arguments are just a few of the 298,465 reasons to work w/an Accountant well versed in the Transportation Industry! And H&R Block is really for people who can't figure out a 1040 EZ form......seriously?

 

Point being per diem went up from $59.00 to $61.00 in my state this year

 

Each state/city does have a set $ amount. You can look up each state/city and keep track of those states/cities or you can claim the flat Per Diem. H&R block is looking at your taxes as an person on a business trip instead of the Transportation Per Diem. Look at the Link and that is the Publication.

The IRS came out with the Flat Per Diem so you would not spend hours looking up cities/states. I would suggest you spend some time and read publication 463 and understand the Per Diem % you are allowed for transportation. I gave you the pages in post #11.

But if you wish to go by what your tax preparer says, you are in for many hours of researching the Per Diem rates each night. Personally I would claim the flat rate for each day and be done with it. The difference is only about a $1k or so.

Publication 463 - http://www.irs.gov/pub/irs-pdf/p463.pdf

Per Diem rates - http://www.gsa.gov/portal/content/104877

 

And I did claim the flat rate for the three years I drove, I was audited for 2008 and passed with flying colors after I had to provide Log pages. I claimed about $16k each year for Per Diem.

Again, YOU fall under the Transportation M&IE part of Per Diem, not company business Per Diem.