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The IRS allows people who travel for business to deduct their meal expenses from their income. The Per Diem rate is set by the IRS. The current rate (as of October 1, 2015) is $63 per day in the Continental US and $68 per day while in Canada.You may hear the amount of the deduction quoted as $50.40.he IRS allows people who travel for business to deduct their meal expenses from their income. The Per Diem rate is set by the IRS. The current rate (as of October 1, 2015) is $63 per day in the Continental US and $68 per day while in Canada.
1 You receive a per diem allowance of $75. 2  You pay the cost of the goods and services for which the allowance is paid. 3  The payer has to deduct withholding tax from $15 of each daily payment as the payment exceeds the $60 threshold on a daily basis. You receive a per diem allowance of $60. 2  You are also provided with all meals while working, either on the set or at some other location. 3  You haven't incurred the expense so the determination doesn't apply. 4  The payer has to deduct withholding tax from the per diem allowance of $60.