Understanding Per Diem Allowances: Reporting and Deductions

QUESTION REVIEWING 2 OF 2 ANSWER INCORRECT Marta's employer provides a per diem allowance while traveling. [f the . allowance is within federal guidelines, how will the allowance be reported 0 (D 0 WHAT YOU NEED TO KNOW on Marta's tax return? THE CORRECT ANSWER Marta does not need to include the allowance in income nor document the expenses on her tax return. Marta does not need to include the allowance in income but she must submit a detailed statement concernng the expenses. Marta must include the allowance in income and deduct the expenses provided she submits a detailed accounting. YOU WERE UNSURE AND INCORRECT Marta must include the allowance in income but cannot deduct the expenses. IDDN'T KNGWYET Per diem allowances that fall within federal guidelines are not included in the employee's tax return.