What is a Per Diem and Who Can Use it?
A per diem is a great deduction for those who are contract workers whose mileage is not reimbursed by their employers. Truck drivers and salesmen are the ones who use the per diem most often. The per diem is a daily allowance for meals and lodging while out of town on business. There are rules that govern the usage of these per diems. All you need to know is included in IRS Publication 1542.
To use the per diem you need to keep records of the dates you were out of town, your mileage and the names of towns you stayed in overnight. A simple log book will suffice. This is so much simpler than having to keep tract of receipts. You may qualify to take the standard meal allowance when you are out of town but not gone overnight.
Publication 1542 will tell you all you need to know about taking this deduction. If you need additional information or are unsure if you qualify, visit the IRS website or contact and Enrolled Agent or other tax professional.