New Per Diem Rates for Business Travel Deductions

The IRS has revised their simplified per diem reimbursement rates for lodging, meals, and incidental expenses effective October 1, 2019.

These rules provide convenience to employers and employees by eliminating the need to save detailed receipts for employee travel reimbursements.

Employees can be separately reimbursed for the actual costs of transportation and meal expenses, in addition to the flat daily $5 amount for “incidental expenses”.

The new per diem rates are $297 for travel for any high-cost locality and $200 for any other place. The new meals only rates are $71 for a high cost locality and $60 for anywhere else.

These rates are an increase from those allowed earlier. High-cost localities no longer include Duluth, Minnesota. There are no longer any high cost localities in Minnesota.

See IRS Notice 2019-55 for complete details.

– Mark S Gleason CPA

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