518-373-4111
New IRS per diem rates for 2017-2018 were recently announced, impacting business travelers who incur expenses on the road. The new rates are effective from October 1, 2017 through September 30, 2018 and include rates for transportation industry meals and incidental expenses, incidental-expenses-only deduction rates, and the rates and list of high-cost localities for purposes of the high-low substantiation method.
The incidental-expenses-only deduction per diem rate is unchanged at $5 per day, regardless of locality. Incidental expenses include fees and tips for baggage carriers, hotel staff, and staff on ships.
The rates for special meals and incidental expenses for transportation industry taxpayers are:
- $63 for travel within the continental United States, and
- $68 for anywhere outside the continental U.S.
There are special rates for certain destinations, due to the varying travel costs depending on the location. Using the high-low substantiation method, the per diem rates are slightly higher than last year’s rates, with a $284 rate for travel to any high-cost locality and $191 for travel to any other locality within the continental United States. The per diem rates for meals & incidental expenses only is $68 for travel to a high-cost locality and $57 for travel to any other locality within the continental United States. The list of high-cost cities can be found on page 3 of the IRS Notice. These localities have a federal per diem rate of $238 or more.
For more information on how GTM keeps clients informed of labor law changes, contact us at (518) 373-4111.
