Per diem taxed by employer - can I deduct meal expenses on my taxes?

12 Wait, so even though my employer is taxing the per diem, I still can't really deduct it because of the 2% rule? What if I have other business expenses too that push me over that threshold?

8 The 2% threshold can be difficult to cross. For example, if your AGI is $70,000, you'd need more than $1,400 in total job expenses before you could start deducting anything, and even then, you'd only deduct the amount over that threshold. As for combining with other expenses, yes, you can add other qualified unreimbursed employee business expenses like professional dues, required work equipment, or work-related education. However, remember you'd still need to itemize deductions instead of taking the standard deduction, which is $14,600 for single filers in 2025. Most people find the standard deduction more beneficial unless they have significant mortgage interest, charitable donations, or other large itemized deductions.

22 Does this actually work for W-2 employees though? I thought those deductions were eliminated for employees but still available for self-employed people?

14 How accurate is it though? I've tried tax software that claims to find deductions but they usually just ask the same basic questions.

15 For W-2 employees, you're right that most unreimbursed employee expenses were suspended under the current tax law through 2025. However, there are certain categories of workers who can still claim these expenses "above the line" (without itemizing), like military reservists, qualifying performing artists, fee-basis state officials, and employees with high-expense business conditions. The tool helped me understand which category I might fall into based on my specific situation. Regarding accuracy, what impressed me was that it's not just asking generic questions. It actually reads and interprets your documents - like when I uploaded pay stubs showing the taxed per diem and my expense records, it identified specific patterns that could be reclassified under the remaining allowable deductions. It's way more detailed than the standard tax software questionnaires.

19 How does this actually work though? The IRS hold times are insane - like 2+ hours. Is this just paying someone to wait on hold for you?

7 Sounds like a scam honestly. Nobody can get through to the IRS these days, especially not in 20 minutes.

18 It's not someone waiting on hold - it's a system that uses their technology to hold your place in line and calls you when an agent is actually ready to talk. Basically you don't have to stay on hold yourself. Yes, it really works! I was incredibly skeptical too. I tried calling the IRS four separate times, waiting over an hour each time before giving up. With Claimyr, I submitted my call request through their site, went about my day, and got a call back when an agent was on the line. The whole process took about 17 minutes from submission to talking with someone.

1 I've never heard of an "accountable plan" - is that something specific in tax law? My company is pretty small and I doubt they even know about these distinctions.

11 Yes, it's a specific IRS term. An accountable plan requires three things: 1) expenses must have a business connection, 2) you must adequately account to your employer for these expenses within a reasonable time, and 3) you must return any excess reimbursement within a reasonable time. With an accountable plan, per diem payments aren't included in your wages and don't get taxed if they're equal to or less than the federal per diem rate. Your employer would need to change how they handle the paperwork, but it's definitely worth asking about. Many smaller companies don't realize this option exists and it's beneficial for both employers and employees since it reduces payroll taxes for them too.

21 This is actually a really good point. If you have ANY self-employment income, you might be able to allocate some of these expenses to that business depending on the circumstances.

This is really helpful! I had no idea about the "qualified performing artist" exception - that could be a game changer for people in our industry. Do you know what the specific requirements are to qualify? I'm wondering if I might meet the criteria since I work for multiple production companies throughout the year and my meal/travel expenses are definitely more than 10% of my film income. Also, the accountable plan suggestion is brilliant. I'm going to bring this up with the production coordinators on my next job. It seems like it would benefit everyone involved if they could structure it properly.

The qualified performing artist requirements are pretty specific but definitely worth checking! You need to meet all of these criteria: 1) You performed services as an employee for at least two employers during the tax year 2) Your aggregate amount of allowable deductions related to performing arts is more than 10% of your gross income from performing arts 3) Your adjusted gross income doesn't exceed $16,000 (before deducting these business expenses) That last requirement is the tough one - the $16,000 AGI limit means this exception really only helps lower-income performers. But if you qualify, you can deduct things like meals, travel, and other unreimbursed business expenses on Form 2106 and carry it to line 24 of Form 1040. For the accountable plan, definitely bring it up! The production company would need to require proper documentation (receipts, business purpose) and set reimbursement rates at or below federal per diem limits, but it eliminates the tax headache for everyone. Many don't realize they can do this.