AboutIvan Roth Expertise Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.
Experience Eight years as tax manger for a real estate company
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