Cash In Lieu 1099 B


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Cash In Lieu 1099 B

Cash In Lieu 1099 B

If your work takes you away from home, you are entitled to various travel expenses. Airline tickets, hotel costs, rental cars, etc., all of these are obvious deductions, for which you need a receipt and proof of payment. However, a travel deduction often missed is called M&IE (Meals and Incidental Expenses). This deduction does not rely on any receipt. You only have to prove that you were away from home on business.

"Away from home" means you are out of your general work area longer than an ordinary day's work. Most people who travel for business know that they can take per diems, but ironically, commercial fishermen and boat captains who are most often away from home in order to do their job, fail to take per diem deductions. When asked why not, most didn't realize that they could, presuming that the travel was part of doing their job. Others thought they needed receipts, and some relied on their tax preparer to advise them. Unfortunately, many preparers aren't aware of this deduction either.

Per Diems for Meals and Incidental Expenses (M&IE)

Meals are self-explanatory -- you have to eat. Incidentals cover such costs as taxi cabs, tips, tolls, parking meters, etc. and you seldom ever get a receipt for these. IRS understands this and has set up a comprehensive list of what is generally spent during a day away from home in any given city and state. A day in New York City would cost you more than a day in a small town in Ohio, for instance, so the daily allowance, called a per diem, is based on the averaged cost for each city. As well, many destinations are seasonal (e.g. a day in December in Florida is more expensive than a day in July in Florida) so there are usually two daily rates reflecting high season and low season.