IRS Meal Allowance (Per Diem)

Instead of keeping detailed records of deductible meals and incidentals while traveling on business, you may prefer to claim the IRS meal allowance. In government tables, the allowance is referred to as the “M&IE” rate (meals and incidental expenses). In the military it is known as “per diem”. The allowance covers meals, tips, tips for luggage handlers, newspapers, etc. while traveling on business. The normal rate was $30 per day for 2002, $31 per day for 2003. The rate is higher in major cities or resort areas. You can check the higher per diem rates by going online to the GSA (General Services Administration) website at www.policyworks.gov/perdiem . When using this website, note that the government rates change at the beginning of the government fiscal year (October 1 through September 30 each year).