Taxpayers are not required to use a method described in this revenue procedure. Instead, they may substantiate actual allowable expenses provided they maintain adequate records.

As a reminder, the TCJA suspended the miscellaneous itemized deduction that employees could take for non-reimbursed business expenses. Certain individuals such as the self-employed, Armed Forces reservists, and qualified performing artists that deduct unreimbursed expenses for travel away from home may still use per diem rates for meals and incidental expenses, or incidental expenses only.

Special meal and incidental expenses rates for taxpayers in the transportation industry are $69 for any location in the continental United States and $74 for any locality outside the continental U.S. The rate for the incidental-expenses-only deduction is $5 per day and applies to any travel locale inside or outside the continental United States.

Per diem rates and the list of high-cost localities for purposes of the high-low substantiation method are also updated. For travel to any high-cost locality, per diem rates are $296. The per diem rate is $202 for travel to any other locality within the continental U.S. The amount that is treated as paid for meals is $74 for travel to any high-cost locale and $64 for travel to any other locality within the continental U.S. Travel to areas on the list of high-cost localities have a federal per diem rate of $249 or more.

Please call the office if you have any questions about per diem rates.