AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Question I am an independent contractor working on a long term project. How long can I remain on this job before my per diem is subject to taxation.
Answer Mike,
Thank you for your question. As an independent contractor, per diem becomes subject to taxation once your employer pays you more than
what the standard allowance is. You report your income from a from 1099 and can then take deductions to offset some of the travel, motels, meals and incidental expenses.
Usually, once a contract goes over a year, the employer has to review the subcontractor vs W-2 status. There are guidelines that determine whether an individual is an employee or an independent contractor.
if your contract goes over a year, it may be suggested that you form a
corporation so as to solidify your status , if you choose. You can then choose what your salary will be and be able to take advantage of the benefits afforded a corporation.
