Per Diem Expensesm -- Mel in Hawaii?

[taxtrio]

I have been tossing around a question with a new client.

He works as a chief butcher on a cruise ship that cruised around the Hawaiian Island Last year.

He is from Michigan, has Michigan Drivers License and address, his Mother took care of the house while he was gone. But took a job on a cruise ship 2007. Was "away from home overnite" for 259 days last year working on cruise ship. He has worked on cruise ships for the past few years, this year more days away. He wants to claim per diem expenses for Meals and incidental expenses while away from home overnite. (subject to DOT rules, allowed 75 percent instead of 50 percent)

Someone said there is a court case ruling concerning this and that he is only allowed the 3.50 per day for incidentals, not the meals of about 40.00 per day for Hawaii cities.

What say you out there, and Mel in Hawaii, have any input on this?

Note: It only makes a few hundred dollars difference on his refund as without this deduction he would be standard deduction anyway.

But I would like to nail this down for sure.

P.S.

[Maura]

If he is being provided meals on board ship by his employer he is limited to just the incidental rate.

[Mel in Hawaii]

I may be in Hawaii, but I do NOT do tax preparation. My history and reason for being on the board is due to the fact that I USED to work for ATX back in the wee early years (till 1999) and that I am working on a tax program of my own. There is a big difference in being able to program a program to carry numbers and follow directions rather than knowing court cases.

Sorry I can't be of any help, although there ARE other people from Hawaii on the board.

[Lloyd Hudson]

I think that he is pushing the envelope. No work in home state, makes tax home under flag of ship. maybe. Notwithstanding tax home, I would concur that he probably has no meal expense at sea. Interesting to think about.

[joelgilb]

Maura is correct.

He only gets incidentals if the employer provides the meals. I do a number of people in the boating industry in LA as my step son lives there and is a boat captain (oil in Gulf). Many of them try to take the whole thing and accountants down there do give it to them. THIS IS INCORRECT! And IRS is now auditing several down there and adjusting their returns.

Lucky for my step-son, that all his whining and complaining did not make me any more aggressive, as his return did not get adjusted on audit!

[joelgilb]

I may be in Hawaii, but I do NOT do tax preparation. My history and reason for being on the board is due to the fact that I USED to work for ATX back in the wee early years (till 1999) and that I am working on a tax program of my own. There is a big difference in being able to program a program to carry numbers and follow directions rather than knowing court cases.

Sorry I can't be of any help, although there ARE other people from Hawaii on the board.

And I thought you knew it all! And you don't need to be from Hawaii to know the answer to this one. the transportation area, whether trucking, boating or airlines are essentially all treated the same. Minor differences if any at best.

So how is everything coming along?

[Mel in Hawaii]

Things aren't progressing as fast as I would like unfortunately.

As for having to be in Hawaii, I figured people would chime in an answer no matter where you are, but I do know a couple people from Hawaii are on here, just as I know there are ATX people in Hawaii as I have run into a few of you. But if you do run into me in the store while I am wearing my ATX polo shirt, please don't rag on me... It just happens to be my favorite shirt, I haven't worked for them since 1999.