Question

Independent contractor

Forum|Forum|5 years ago
March 4, 2021
1 reply
0 views

My husband has income as an independent contractor. His employer included his per diem and traveling expenses as part of his wages. Does he have to pay taxes on those items as wages?

TurboTax Business Windows

RayW7

Yes, if your per diem payments were reported to you on Form 1099, you will include this income on your tax return.

Payments will be taxable to the employee when any of these situations are true:

· No expense report is filed with the employer,

· The expense report filed does not include the date, time, place, amount and business purpose of the expense,

· A flat amount is given to the employee and no expense report is required, or · Per diem is paid in excess of the allowable standard federal rate.

These per diem payments listed above would be treated as wages and employment taxes are due from the employer.

-follow this link for more information-

Per Diem Payments Frequently Asked Questions - Internal ...

S

SweetieJean

Employee

I see that you are asking from TT Business. This is only used for Corporations, S Corps, Partnerships and Estates/Trusts. It is not used for regular self-employment income.

And not that "wages' are usually reported on form W-2.