IRS releases special per diem rates
Posted by DaveMoll on Sep. 24, 2024 / Subscribe 0
The IRS has released the 2024-2025 special per diem rates. Taxpayers use the per diem rates to substantiate certain expenses incurred while traveling away from home. These special per diem rates include:
- the special transportation industry meal and incidental expenses (M&IE) rates,
- the rate for the incidental expenses only deduction,
- and the rates and list of high-cost localities for purposes of the high-low substantiation method.
Transportation industry special per diem rates. The special M&IE rates for taxpayers in the transportation industry are:
- $80 for any locality of travel in the continental United States (CONUS), and
- $86 for any locality of travel outside the continental United States (OCONUS).
Incidental expenses only rate. The rate is $5 per day for any CONUS or OCONUS travel for the incidental expenses only deduction.
High-low substantiation method. For purposes of the high-low substantiation method, the 2024-2025 special per diem rates are:
- $319 for travel to any high-cost locality, and
- $225 for travel to any other locality within CONUS.
The amount treated as paid for meals is:
- $86 for travel to any high-cost locality, and
- $74 for travel to any other locality within CONUS.
Instead of the meal and incidental expenses only substantiation method, taxpayers may use:
- $86 for travel to any high-cost locality, and
- $74 for travel to any other locality within CONUS.
Taxpayers using the high-low method must comply with Rev. Proc. 2019-48, I.R.B. 2019-51, 1392. That procedure provides the rules for using a per diem rate to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home.
Notice 2023-68, I.R.B. 2023-41 is superseded.
SOURCE: Notice 2024-68, I.R.B. 2024-41, October 7, 2024.
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