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Biz travel per diem rates up­dated

Wash­ing­ton, D.C. — The In­ter­nal Rev­enue Ser­vice is­sued its an­nual no­tice de­scrib­ing the daily rates that tax­pay­ers can use for lodg­ing, meals and in­ci­den­tal ex­penses when trav­el­ing for busi­ness. The no­tice also pro­vides the spe­cial trans­porta­tion in­dus­try rate, the rate for the in­ci­den­tal ex­penses only de­duc­tion, and the rates and list of high-cost lo­cal­i­ties for pur­poses of the high-low sub­stan­ti­a­tion method. The spe­cial meal and in­ci­den­tal ex­pense rates for tax­pay­ers in the trans­porta­tion in­dus­try are $66 for the con­ti­nen­tal U.S. and $71 for travel out­side the con­ti­nen­tal U.S. The rate for any lo­cal­ity of travel for the in­ci­den­tal ex­penses only de­duc­tion is $5 per day.

For pur­poses of the high-low sub­stan­ti­a­tion method, the per diem rates are $287 for travel to a high-cost lo­cal­ity and $195 for travel to any other lo­cal­ity within the con­ti­nen­tal U.S. The amount of the $287 high rate and $195 low rate that is treated as paid for meals is $71 for travel to any high-cost lo­cale and $60 for travel to any other lo­cal­ity within the con­ti­nen­tal U.S. The per diem rates in lieu of the rates for the meal and in­ci­den­tal ex­penses only sub­stan­ti­a­tion method are $71 for travel to any high-cost lo­cal­ity, and $60 for travel to any other lo­cale within the con­ti­nen­tal U.S.

The IRS of­fers a break on em­ployee mov­ing ex­penses

Wash­ing­ton, D.C. — The IRS is al­low­ing peo­ple to con­tinue to deduct em­ployer pay­ments or re­im­burse­ments for em­ployee mov­ing ex­penses, as long as they hap­pened be­fore this year, although the Tax Cuts and Jobs Act will change that for this year and go­ing for­ward. The IRS said that em­ployer pay­ments or re­im­burse­ments in 2018 for em­ploy­ees’ mov­ing ex­penses that were in­curred prior to 2018 can be ex­cluded from an em­ployee’s wages for in­come and em­ploy­ment tax pur­poses.

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