Versions: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28. 000 FXUS62 KKEY 171823 AFDKEY Area Forecast Discussion National Weather Service Key West FL 223 PM EDT WED AUG 17 2016 .DISCUSSION... .CURRENTLY... Skies are partly cloudy with temperatures ranging from the upper 80s to near 90 degrees along the Florida Keys.
The IRS treats a per diem payment as a reimbursement for business expenses. As such, the amount is not taxable income, as long as the per diem does not exceed the actual expenses incurred. Employees are expected by IRS rules to keep track of itemized expenses and return any excess per diem payment to the employer, otherwise the excess is reported as wages on the W-2, and taxed as income.
If the total amount paid by the taxpayer is less than the Federal Per Diem Rate, no amount is reported on the tax return. If the allowance was more than the federal rate, then the employer will include this amount up to the federal rate in box 12 of Form W2. This will be reported as if it is wage income.To display instructions for entering per diem on Form 2106 in the tax program click here. The employer will issue the Per Diem amount to the employee. 2  If the entire Per Diem was not used, then the employee may keep the remaining portion. 3  If the employee used more than the Per Diem allowance, then the remaining portion can be deducted on Form 2106.