Earlier this year, my employer reimbursed $500 that I paid out of my own pocket for travel expenses as per diem. I was not charged any tax on that, so I was wondering whether it would be taxable at the end of the year and at what rate?
Per-diem is not taxable, if all the conditions are met. Conditions include:
- Expense report from the employee, which includes the dates, business purpose and receipts for lodging (if meal only per diem is provided).
- Per diem is less or equal to the Federal per-diem rate.
- Report submitted within reasonable period (usually within 60 days of the trip)
You can find this and more in this IRS FAQ document re the per-diem.