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Note

Because the IRS requires receipt and documentation for non-employee reimbursements, per diem is the one exception to this ruleallowance. You may not submit non-taxable per diem for a non-Reliant Spouse or Dependent.

UI Expand
titleTreasury Regulation § 1.62-2

Treasury Regulation § 1.62-2 (which governs Accountable Plans).

An employer can only issue a tax-free per diem under an Accountable Plan. Under IRS rules, an Accountable Plan only applies to employees.

  • If a non-employee receives an allowance (like a per diem) to travel, it cannot legally be processed through the organization's Accountable Plan.
    • Therefore, the IRS requires the organization to report that money on a Form 1099 (if paid directly to the spouse) or a Form W-2 (if paid to you as a benefit)

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    Submitting a Reimbursement for a Non-Reliant Spouse

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