Per diem tax question

[NavyWife2001]

Hey ya'll!

I am not sure if this is the right place to post, but I have a tax question for the guys that have had per diem.

Do they send you a W-2 for per diem? OR... Is it like BAH where you don't claim it as income?

Thanks!!!

 

[Thisguy]

I think it's non-taxed income. I've never gotten a W-2 for it, nor have I worried about it

 

[NavyWife2001]

Awesome! That is what I needed to hear! I have been waiting to send in our taxes cause I thought we would get a W-2 for the per diem.
We did get a W-2 for a small amount, and I can't figure out what it is? Do they tax travel money?

 

[ChunksJR]

Awesome! That is what I needed to hear! I have been waiting to send in our taxes cause I thought we would get a W-2 for the per diem.
We did get a W-2 for a small amount, and I can't figure out what it is? Do they tax travel money?

It could be taxes for any bonuses that you may have gotten over the past year (or in previous years that were paid this year). Otherwise the only thing you should see FEDERALLY taxed is Base and special pays (flight pay, sea pay, etc) unless you were in a tax free zone...in which case you'll probably have a different SSec tax amount than FICA.

Hope that helps.
~D

 

[Kathy]

I think we receive separate W-2s for partial DITY moves as well. I know your husband moved a couple of times last year, so it could be that.

 

[digitalepiphany]

Anything with the word "pay" in it is taxed. Flight pay, hazardous-duty pay, etc. BAH and BAS are non-taxable income.

 

[NavyWife2001]

I didn't think that per diem would be taxed, but you never know. LOL!
Thanks guys, for all of the info!

Thanks and Blessings!

 

[bennett4362]

when you look at a travel voucher AOP it doesn't say any taxes are taken out, so that seems to say you don't pay taxes on it, right?

 

[NavyWife2001]

Right, but I didn't know if per diem would be considered "income". But since it is like BAH and BAS, etc...then it can't be taxed and it won't add to your income.
I was getting worried because we wouldn't be getting as much back if we had to add in per diem as income! LOL!

 

[Schnugg]

Per diem is not taxed. It is re-imbursement for expenses you pay out of pocket on already taxed income.

 

[ChunksJR]

I was getting worried because we wouldn't be getting as much back if we had to add in per diem as income! LOL!

OK, I've failed in convincing my wife of this, but in the big scheme of things...you WANT to owe...consider it a tax-free loan! Just invest it and you'll owe it back, minus what you've made in the meantime...making you the ultimate winner.

Either way...no prob. Good luck.
~D

 

[digitalepiphany]

What I was told by the finance office when I was AD AF is that if the name of the compensation (i.e, BAH, BAS) does not have the word "pay" in it, then it is not taxed. While in, I received BAH, BAS, per diem, moving expenses, you name it. The only thing that was ever taxed was my base pay and foreign language proficiency pay.

However, it does seem like bull**** that combat veterans have to pay taxes on "combat pay." Seems a bit ridiculous if you ask me.

 

[zippy]

However, it does seem like bull**** that combat veterans have to pay taxes on "combat pay." Seems a bit ridiculous if you ask me.

Thats why they have designated war zones... serve in any for one day in a month, that entire months pay is tax free...they don't have to pay taxes on any of any of their pay if it was earned in a combat zone.

Not sure of the mechanics of though (ie get taxes taken out first then get it all back at tax time, or some sort of waiver so you get the whole thing up front etc.).

 

[Brett327]

Not sure of the mechanics of though (ie get taxes taken out first then get it all back at tax time, or some sort of waiver so you get the whole thing up front etc.).

Nope, federal taxes are not withheld, and the money does not show up in Block 1 of your W-2. You do pay FICA/Medicare etc. on it though.

Brett

 

[zippy]

I see...