newlease09
06-03-2009, 10:57 AM
I was wondering if anyone can help me out? I am going to file pro se,but I have a question that has me stumped. I cannot find info on per diem and if you have to claim it as income. Let me explain a little my husband works construction and is paid a daily per diem. I had a free consult with and attorney and asked him about it he said not to worry. I like to have all my facts ahead of time so that I don't have to jump through hurdles if I don't include it as income. Thanks for any help any one can give.
justbroke
06-03-2009, 04:54 PM
Unless your employer reports per diem as income (Block 1 of your W-2), then it is not income. There are some times where it can become income, but my Trustee never questioned me on my "Expense Reimbursement" on my paystubs. These amounts are not included in my gross income nor are they taxable.
While the Bankruptcy Code defined "current monthly income" as all income received (over the prior 6 months), per diems are tricky in that they may exceed the expense incurred. Generally, they are not treated as income. Mine are actual reimbursements with not to exceed per diems.... so my expenses equal or exceed the actual reimbursements.
Unless you're actually benefiting from the per diem -- which you could -- I don't see a Trustee claiming them as income. Remember, that the Bankruptcy counts all income received as "income" regardless of whether it's taxable. While the general consensus is that per diem reimbursements are not "income" for purposes of the means test... they may be "income" if they exceed your expenses!
Generally speaking though... no, they are not income.
AngelinaCatHub
06-03-2009, 05:20 PM
Justbroke: Wow, I jumped on that one also but how to top your excellent information, I could not do better. I will probably get blasted at complimenting you on the OP's thread, but I must say, you are sharp. 'Hub
newlease09
06-03-2009, 05:39 PM
Thank you for your response. We get a seperate check for the per diem and it is not listed on our w-2, but they show it added in our yearly income on weekly pay stub.
newlease09
06-03-2009, 05:41 PM
If you don't mind me asking Justbroke what state did you file in?
justbroke
06-03-2009, 06:31 PM
If you don't mind me asking Justbroke what state did you file in?Umm... same one as you! :) The Sunshine State.
justbroke
06-03-2009, 06:33 PM
Justbroke: Wow, I jumped on that one also but how to top your excellent information, I could not do better. Life experience. :)