Do I have to itemize if I take the standard Foreign Per Diem rate?

The Federal M&IE rate may be used for meals ONLY, subject to the normal 50% meals limitation. You must use the same method for the entire year, either actual meals or theM&IE rate. If you use the actual amounts you don't need receipts unless a single item is greater than $25.00 IF you maintain a contemporaneous diary of all expenses. You need a diary to substantiate the number of meals if you use the M&IE rate.

The lodging rate is useless to you. You can only claim the actual lodging costs as evidenced by receipts. Receipts are mandatory for ALL lodging costs, regardless of amount.

All other legitimate business expenses are limited to the actual cost as long as it meets the reasonable and necessary criteria. The $25 rule applies for receipts on these expenditures as well.

Assuming that you are an employee you claim unreimbursed business expenses on Form 2106. The total flows to Schedule A as a miscellaneous itemized deduction, subject to a 2% AGI minimum.

For tax purposes, the IRS accepts the consistent with diem rates it publishes. You deduct from those rates the quantity of reimbursement and declare the distinction as dwelling faraway from abode expenditures. verify the tax regulations to ensure how the dimensions of your stay overseas impacts the deduction.