The key in such determination is temporary -
According to the IRS - you must determine whether your assignment is temporary or indefinite when you start work. If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise.
So - if that is a temporary assignment - you may deduct Per Diem, lodging and other travel expenses.
You may refer to the IRS publication 463 -
page 5 - Table 1-1. Travel Expenses You Can Deduct
Regarding Per Diem rate ...you can use the standard meal allowance method as an alternative to the actual cost method. It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs.Your allowable lodging expense deduction is your actual cost.
Receipts are required fro lodging. If you are using you car to travel to temporary job locations - you may deduct car expenses - either actual OR based on teh standard mileage rate.All these are DEDUCTIBLE job related expenses.
So subsistence payments are included into wages and reported on W2.
If paid under an accountable reimbursement plan - may be classified as business related reimbursements and not taxable.
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