Submitted By: someone
Answered: October 6, 2019 10:45 pm

I am a contract engineer who normally works on projects away from home for less than a year. Are my per diem reimbursements tax free?

If you are reimbursed under an accountable plan, then reimbursements may be tax free. For example, if reimbursements for your mileage exceed the IRS standard mileage rate, then only amounts up to the rate are tax free; excess reimbursements are taxable.

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Tax Glossary

At-risk rules

Rules limiting loss deductions to cash investments and personal liability notes. An exception for real estate treats certain nonrecourse commercial loans as amounts “at risk.”

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