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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 22923
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a small consulting business and report on schedule C.

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I have a small consulting business and report on schedule C.
This year a client out of town (300 miles away), hired me for most of a week.
I was paid $2,000 for the job on a 1099 and as per our contract, she also paid me 'per diem' meals. That came to $284. It was just below the figure I looked up for the federal limit. I did not keep receipts on my meals as I knew I was getting the per diem. How do I report this? Do I put the $284 in with income and then turn around and also enter it as a meals expense. If so, would that be subject to the 50%? Thanks

Hello, I'm Robin. Welcome to JustAnswer. I'm typing up my reply. After you read my answer, post below so I know you understand or let me know.

Yes that is exactly how you report. There are some who would say if they did not list on the 1099MISC you do not need to include the extra bu that is not really correct.

Yes yo will be subject to the 50% rule on meals.

Going forward remember that PER DIEMS are only for EMPLOYEES not independent contractors.

You are most welcome

A 5 star positive rating would be appreciated.

Any call offer is site generated, not from me. I physically cannot use phone.

Offers of phone calls are site generated as a courtesy not a requirement

 

Customer: replied 10 days ago.
Thanks so much!

You are most welcome

A 5 star positive rating would be appreciated.

Any call offer is site generated, not from me. I physically cannot use phone.

Offers of phone calls are site generated as a courtesy not a requirement

 

Customer: replied 10 days ago.
OK - so in the future, I won't have client pay me for per diem. Just so I understand however, when I am on a trip as a sole prop, can I use the per diem rates rather than keep my receipts for meals?

Yes you can use the rates

You are most welcome

A 5 star positive rating would be appreciated.

 

Robin D. and other Tax Specialists are ready to help you
Customer: replied 10 days ago.
Thanks, that is all I needed for now!