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.