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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10163
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am a contractor who has worked 330 days abroad and am filling

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I am a contractor who has worked 330 days abroad and am filling out form 2555. I have gotten to Lines 21 and 22 where it asks about meals and allowances that were paid for by my company. I received the federal per diem rate for each day that I was abroad, which I believe is not taxable. Is this per diem something that I need to report here? FYI, I am over the $95,100 limit in base pay, so I am trying to keep the other income from per diem off the books.

Also, I haven't started my MA taxes yet... will I have to pay state taxes? Or am I exempt because I lived abroad? I was not abroad the whole year, (started in March) so do I prorate it somehow?

Customer:

HI, the per Diem (if part of an "accountable plan,") and you employer will be able to verify that, is NOT taxable

Customer:

On the MA part, they're pretty aggressive about whether your are domiciled there

Customer:

They'll use things like, if you intend to return, own assets there, etc

Customer:

Massachusetts IS, however, one of the states that uses Federal AGI as the starting point for figuring state taxes

Customer:

SO the exclusion will be out of that number

JACUSTOMER-7wzghm6d- :

Beautiful. The per diem is at the government determined per diem rate and has been accounted for in my company's expense reporting software. Sounds like I'm covered here.

I own an apartment in MA, which I consider to be my principal residence, so it sounds they've got me there.

Customer:

looking now, to see if I can find more details on the residency requirement in MA

Customer:

OK, yep

Customer:

sorry just saw your first comment

Customer:

Good, sounds like you're ok there too

JACUSTOMER-7wzghm6d- :

So to be clear, my federal gross adjusted income, after I've gone through form 1040 will be the starting point for my MA forms yes?

JACUSTOMER-7wzghm6d- :

Great, good to know. Thanks for the help.

Customer:

You're welcome.

Lane and other Tax Specialists are ready to help you


Thanks for the rating Erik.



 

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Thanks again,

Lane

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