PER DIEM RATES FOR OCTOBER 2017 – SEPTEMBER 2018 ANNOUNCED

The General Services Administration has released the fiscal year (FY) 2018 travel per diem rates, which will take effect on October 1, 2017.

 

To find specific CONUS per diem rates go here.

 

The GSA establishes the per diem rates meals and incidental expenses and lodging each year for the fiscal period October through September.  These rates are “based on Average Daily Rate (ADR) data from the lodging industry, which GSA obtains through a contract with a leading provider of lodging industry data”.  

 

The new maximum standard per diem rate for travel locations not specifically identified in the per diem rate tables will increase from $142 to $144 ($93 for lodging, $51 for M&IE).   Fiscal 2018 meals and incidental per diems remain at the fiscal 2017 standard range of $51 to $74. 

 

A refresher course –

 

The GSA per diem rates can be used by employers to reimburse employees for business travel, and the per diems for meals and incidental expenses can be used by unreimbursed employees and the self-employed to claim a tax deduction for business travel.

 

Self-employed taxpayers filing a Schedule C, and employees who are not covered by an employer reimbursement plan, cannot use the per diem method that includes lodging. To claim a deduction for lodging expenses these taxpayers must substantiate the actual cost.  And corporations cannot use the per diem that includes lodging for owner-employees with more than 10% ownership, based on direct or indirect ownership.

 

Similar to how the Standard Mileage Allowance works for business use of your automobile, you can elect to deduct either the actual amount of your out of pocket expenses for meals and “incidental” expenses while away from home on business, or claim the appropriate federal per diem allowance determined by the location of the trip.  If you claim the per diem allowance you do not have to save receipts for actual expenses.

 

The per diem rates are based on the city where you “lay your head” at night. If your business meetings are in New York City, but you stay overnight at a hotel in New Jersey to get a lower room rate, you would use the New Jersey location to determine the appropriate per diem amount.

 

You can decide whether to deduct the GSA meals and incidental per diem rate or actual expenses on a trip by trip basis, but you must use the same method for all days within any single business trip. I can use the actual expenses for my trip to Washington DC last week to attend the NATP National Conference and the per diem rate for my upcoming September trip to Atlantic City for the NATP Forum.

 

The per diem rate for meals and incidental expenses includes tips given to porters, baggage carriers, bellhops, hotel maids (the “incidental” expenses) – so the actual out of pocket for these incidentals are not deductible if you claim the per diem.

 

There is also a separate per diem rate for incidental expenses only, to use if you do not incur meal experiences while traveling.  It is currently $5.00 per day.

 

On the first and last day of a business trip you claim 75% of the per diem amount, unless you can show you leave before breakfast on the first day and return after dinner on the last.

 

Any questions?

 

TTFN