Expert: Ivan Roth - 9/1/2009

Question
My husband has a construction job that recently started putting their perdiem's on his paycheck as part of his gross income (only if he is staying away from home) they stated when they started this process that their perdiems were not to be taxed. But as I keep repeatedly seeing on his paystubs his perdiems are included in his gross income and taxed afterward. Are we supposed to be deducting his expenses from our income taxes because they are taking taxes out of his perdiems?

Answer
Hi Jennifer depending on various facts a per diem payment may be taxable or  non taxable

It appears that the company has decided that it will be up to the recipient to determine their tax nature

I suggest that you become familiar with form 2106  and instructions "employee expenses"  at

wwwirs.ustreas.gov.