1. What is IRS Per Diem?

The IRS per diem rates are the federal government's daily allowance for lodging, meals, and incidental expenses when traveling away from home for business purposes. These rates vary by location and are updated annually.

2. How Does the Calculator Work?

The calculator uses the IRS per diem rates:

Where:

• \( IRS\ Rate\ for\ Location \) — The standard daily allowance for the selected city
• \( Number\ of\ Days \) — Duration of business travel

Explanation: The calculator multiplies the daily rate by the number of travel days to calculate the total per diem allowance.

3. Importance of Per Diem Rates

Details: Using per diem rates simplifies expense reporting and ensures compliance with IRS regulations for business travel deductions.

4. Using the Calculator

Tips: Select your travel location and enter the number of days. The calculator will show both the daily rate and total per diem amount.

5. Frequently Asked Questions (FAQ)

Q1: Are these rates updated annually?
A: Yes, the IRS typically updates per diem rates each fiscal year (October 1).

Q2: Can I use the full per diem for partial days?
A: For travel days, you can typically claim 75% of the daily rate.

Q3: What if my city isn't listed?
A: Use the "Other Standard Rate" option for the standard continental US rate.

Q4: Do these rates include taxes?
A: Yes, the lodging portion of per diem rates includes taxes.

Q5: Can I claim more than the per diem rate?
A: Amounts above per diem rates may be taxable as income to the employee.