Per Diem as Independent Contractor?

V

Vincent

Member
Jurisdiction
Illinois
Hello,

I had a few questions about Per Diem.

My State is IL.

County is Cook.

I do I.T work and a lot of the work starts in the evening and goes well into the next morning / day. I only bring this up because I am not sure how that would effect my Per Diem if I can take it at all.

I dont have an LLC or S-Corp.

I just receive money under my own Social Security Number.

I usually either get a 1099-K or 1099-NEC from some platforms or companies I do work for.

So far I have only have taken the actual cost for transposition, Lodging, and meals.

I keep all my receipts and notes about each business trip and use the actual dollar amount expense each year.


I am traveling more and more and wanted to know as an Independent Contractor without a company (LLC, S-Corp ect) can I use Per Diem?

I have been looking at the GSA.gov website and alot of the places I travel to work are in higher cost areas.


Last question is I don't live in the City of Chicago, but I do travel ( some times by car, by train) to work in Chicago from the suburbs of Chicago. (Still in the same County if that makes a difference)

Can I claim Per Diem or even just actual cost for in this question meals?

Do I have to be X amount away from the location I am working to be able to deduct meals on either situation? (Actual cost or Per Diem)

Thank you!
 
Vincent said:
Hello,

I had a few questions about Per Diem.

My State is IL.

County is Cook.

I do I.T work and a lot of the work starts in the evening and goes well into the next morning / day. I only bring this up because I am not sure how that would effect my Per Diem if I can take it at all.

I dont have an LLC or S-Corp.

I just receive money under my own Social Security Number.

I usually either get a 1099-K or 1099-NEC from some platforms or companies I do work for.

So far I have only have taken the actual cost for transposition, Lodging, and meals.

I keep all my receipts and notes about each business trip and use the actual dollar amount expense each year.


I am traveling more and more and wanted to know as an Independent Contractor without a company (LLC, S-Corp ect) can I use Per Diem?

I have been looking at the GSA.gov website and alot of the places I travel to work are in higher cost areas.


Last question is I don't live in the City of Chicago, but I do travel ( some times by car, by train) to work in Chicago from the suburbs of Chicago. (Still in the same County if that makes a difference)

Can I claim Per Diem or even just actual cost for in this question meals?

Do I have to be X amount away from the location I am working to be able to deduct meals on either situation? (Actual cost or Per Diem)

Thank you!
Click to expand...

I suugest you avoid seeking free tax advice from all unknown parties.

It would behoove you to discuss your concerns with a licensed CPA, if you wish to avoid defending yourself in the future from allegations from the IRS and state or local taxation agencies.
 
You can never go wrong by keeping a log (in written form with receipts) of your actually travel expenses. That way, your accountant or you will be able to justify a per diem or actually expense.
 
As a self-employed person, you may use the per diem method; it's not just for employees. But if you work in an area with high expenses, taking the deductions for the actual expenses you pay may provide you a better tax benefit. The IRS publication that Jack linked spells out the travel expense rules in detail for both self-employed persons as well as employees. Note that currently employees cannot take those deductions, but that will change after 2025 when the Trump tax act expires, unless Congress acts to keep that rule in place after the act expires. Whatever method you use, keep accurate records of your travel expenses. As welkin mentioned, you can't go wrong doing that and the records may be extremely valuable to you not only for supporting your deductions in the face of an IRS challenge, but also to help you see what you are actually spending for the travel as an aid to your business planning.
 

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