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Feds Recently Freeze Travel Reimbursements for 2013
Date:1/2/2013

example, United Airlines compensates each of their crewmembers $1.80 for each hour traveling, or about $43 per day. But the per diem allowance for San Francisco, Chicago and several other high-cost cities is $71. The difference of $28 is tax deductible. This is common for most pilots and flight attendants.

Besides DOT workers, other organizations and businesses are not excited about the frozen rates. When tackling the per diem rates for 2013, the U.S. GSA wanted a 30% decrease. But the American Hotel and Lodging Association and the U.S. Travel Association lobbied heavily to at the very least maintain 2012 per diem levels. Many government workers, military personnel and business travelers use Federal per diem rates when making lodging decisions and reservations.

Therefore if rates are frozen then hotels must be careful when considering raising lodging rates in 2013. If a hotel exceeds the Federal per diem rate, a traveler might look elsewhere. Hotel and travel lobbyists will continue to work with the U.S. GSA office to ensure economic per diem rates for the future.

For a free online per diem calculation for meals and incidentals visit the Watson CPA Group’s website.

The Watson CPA Group is a progressive tax consultation and preparation firm embracing internet technology to provide worldwide tax service from offices in Colorado USA. A secure online Client Portal allows remote taxpayers to exchange financial information, tax documents and tax returns saving valuable time and resources.

Since 1997, they are a team of Colorado Springs CPAs preparing individual and corporate tax returns for a flat fee, and specializing in LLCs, small business and corporate taxes, pilot and flight attendant tax deductions, per diem deductions, rental property owners and expat tax clients.<
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