The IRS has released the 2023-2024 special per diem rates. Taxpayers use the per diem rates to substantiate certain expenses incurred while traveling away from home. These special per diem rates include:
- 1. the special transportation industry meal and incidental expenses (M&IE) rates,
- 2. the rate for the incidental expenses only deduction,
- 3. and the rates and list of high-cost localities for purposes of the high-low substantiation method.
Transportation Industry Special Per Diem Rates
The special M&IE rates for taxpayers in the transportation industry are:
- $69 for any locality of travel in the continental United States (CONUS), and
- $74 for any locality of travel outside the continental United States (OCONUS).
Incidental Expenses Only Rate
The rate is $5 per day for any CONUS or OCONUS travel for the incidental expenses only deduction.
High-Low Substantiation Method
For purposes of the high-low substantiation method, the 2023-2024 special per diem rates are:
- $309 for travel to any high-cost locality, and
- $214 for travel to any other locality within CONUS.
The amount treated as paid for meals is:
- $74 for travel to any high-cost locality, and
- $64 for travel to any other locality within CONUS
Instead of the meal and incidental expenses only substantiation method, taxpayers may use:
- $74 for travel to any high-cost locality, and
- $64 for travel to any other locality within CONUS.
Taxpayers using the high-low method must comply with Rev. Proc. 2019-48, I.R.B. 2019-51, 1390. That procedure provides the rules for using a per diem rate to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home.
