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Per diem

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Rodney

Junior Member
What is the name of your state? WV

I am a subcontractor in the CATV industry, during the recent hurricanes, I worked with a Contractor in FL, TX, MS, LA. He sent us our 1099's in Feb, then yesterday, I got an ammended 1099...the only difference is that he added all of the perdiem that we recieved as taxable income...is this legal?
I thought that perdiem was non taxable. I would like to try to resolve this as it is getting close to that time and it affects many other people that have the same question. Thanks in advance for any info.
 


efflandt

Senior Member
An employer can deduct and should not tax per diem within the federal guidelines (or if employee accounts for actual expenses). But that is regarding a W-2.

If your pay and per diem were on a 1099, you are considered an independent contractor (not employee). Therefore, you are responsible to account for all related income taxes or deductions.

But I am no expert (just an employee who has service customers send us W-9's). So you might want to filter through IRS info beginning with http://www.irs.gov/publications/p1542/ar01.html
 

LdiJ

Senior Member
Rodney said:
What is the name of your state? WV

I am a subcontractor in the CATV industry, during the recent hurricanes, I worked with a Contractor in FL, TX, MS, LA. He sent us our 1099's in Feb, then yesterday, I got an ammended 1099...the only difference is that he added all of the perdiem that we recieved as taxable income...is this legal?
I thought that perdiem was non taxable. I would like to try to resolve this as it is getting close to that time and it affects many other people that have the same question. Thanks in advance for any info.
Since it was a 1099 it was appropriate for the per diem to be included. You simply file a schedule C and deduct the expenses that the per diem covered. Your end result will be the same.
 

Rodney

Junior Member
We all received a daily perdiem, per man from the Cable system operators. You got it every day that you worked, if you didnt work, you didnt get it. At the time, we received 2 checks, one for hours worked and one for perdiem. Everyone that I have talked to said the same thing, that it wasnt taxable, the reason that it was so high, was because sometimes it wouldnt even cover your room for the day, much less any food. I wonder about the ramifications of doing this during the hurricane restoration, if he could face legal issues as a result. Thanks for all of the imput so far.
 

justalayman

Senior Member
Rodney said:
We all received a daily perdiem, per man from the Cable system operators. You got it every day that you worked, if you didnt work, you didnt get it. At the time, we received 2 checks, one for hours worked and one for perdiem. Everyone that I have talked to said the same thing, that it wasnt taxable, the reason that it was so high, was because sometimes it wouldnt even cover your room for the day, much less any food. I wonder about the ramifications of doing this during the hurricane restoration, if he could face legal issues as a result. Thanks for all of the imput so far.
go back and read LdiJ's post.

You seem to be getting worked up over nothing. You were paid on a 1099 which means you should not have had any taxes withheld.
Now follow LdiJ's direction on filing.

LdiJ (I believe) deals with taxes for a living. She would know what's up. The thing I don't understand is: how/why would an independant contractor recieve a per diem payment. Wouldn't that just be a part of the whole payment agreement and not be differentiated as to what it was for?

The other thing that makes no sense is this:

the reason that it was so high, was because sometimes it wouldnt even cover your room for the day, much less any food. I wonder about the ramifications of doing this during the hurricane restoration, if he could face legal issues as a result.
What in the world is that supposed to mean?
 

Snipes5

Senior Member
Look, you were paid correctly, even if they chose to give it to you in separate checks. If you spent all the money and didn't save any to pay your taxes, that is your problem and not your employer's problem. If your expenses were higher than normal, and you can document this, I see no issue for you. If you have no documentation, you are up a creek, but again, that is your problem, not your employer's.

As far as the per diem rates being higher due to the situation in the hurricane areas, that is certainly possible, though I have had no need to research it thus far.

Unknot your knickers and re-read LdiJ's post. It has all been properly explained to you.

Snipes
 

Rodney

Junior Member
Thank You....

Thanks for all of the information. The reason that the question came up to begin with, is out of all of the people that were 1099'd, approximately 30-35, only 2 of us from the same state had recieved ammended 1099's. I just found that strange and wanted some advice on the subject. I have enough reciepts for the perdiem, just didnt understand the reasoning for the ammendment. But thank you all.
 

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