Are Palin’s Per Diem Payments Taxable?

[RamboLiberal]

The McCain campaign has said it will release Sarah Palin’s tax returns and when it does, tax attorneys will have their pencils sharp and ready to go over the numbers.

Several tax accounting blogs have raised the question: should Sarah Palin pay federal income taxes on the per-diem payments that she received from the state of Alaska for nights spent in her Wasilla, Alaska, home?

Anthony C. Infanti, a professor of tax law at the University of Pittsburg law school, raised the issue in a blog called “Feminist Law Professors.” Mr. Infanti writes that if Governor Palin was not engaging in business while in Wasilla, but simply preferring to spend the nights there, then the per diem payments would be taxable income.

“If these are really just personal expenses paid by her employer, that sounds like taxable income to me,” Mr. Infanti wrote in his posting.

Ms. Palin received around $17,000 in per diem payments from the state for 312 nights she spent in her Wasilla home rather than the Governor’s mansion in her first 19 months in office. Per diem payments are a daily allowance to cover meals and lodging while on the state’s business.

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“It’s obvious that the per diems are taxable income. There’s no question it is taxable,’’ Mr. McIntyre said. “If it were not taxable, no one would pay taxes. People would convert their salary into a per diem and no one would pay taxes. You can deduct travel expenses when away from home. But you cannot deduct travel when you are at home.”

http://thecaucus.blogs.nytimes.com/2008/09/19/are-palins-per-diem-payments-taxable/

Sweet - love if she and Todd got nailed on this! Listening to Ed Schultz town hall from Alaska the citizens of Alaska didn't know about this and many were pissed!

[PBS Poll-435]

1. I have already looked into this

We need her tax returns NOW.

[RUMMYisFROSTED]

2. And...?

:shrug:

[PBS Poll-435]

3. Many different factors

1. Accountable / Non-Accountable Plans

2. What was listed on her W-2?

3. Who approved the payment request?

I honestly think this will end up in court.

[MercutioATC]

4. If it's anything like federal per diems, they're not taxable.

Mine never were.

I suspect state state systems are the same.

[RUMMYisFROSTED]

9. D'oh.

[Jeff In Milwaukee]

12. But the payments exceed the GSA rates

Excessive per diem may be taxable. I'd have to look it up.

Edit: And I'm also certain that her kids out-of-state travel was not allowable by the State of Alaska. It would have to be paid back or taxed as income.

[NutmegYankee]

5. Generally no.

They are considered a reimbursement, and not income. There are exceptions, like if you have been TDY for 9 months or more.

[LiberalFighter]

6. That is the key... reimbursement

The other key is that she spent that time at her own home when the taxpayers are paying for a Governor's mansion to conduct business at the state capitol.

[Gin]

7. wonder if she is getting per-diem while campaigning......

g

[NutmegYankee]

8. Whether she should have gotten it is another question...

I just answered the tax question:hi:

[Motown_Johnny]

11. That is exactly what I thought as soon as I heard this

It seems to me that she and Todd were renting a room to the Governor. The fact that the Governor happened to be her is irrelevant.

I must assume that they need to claim that 17K as income the same way any hotel would.

[Jade Fox]

10. It's frustrating that this story hasn't gotten more attention......

as it is one of Palin's more outrageous actions, IMO. I would LOVE to hear the IRS has been knocking on her door.

Her other outrageous action was hiring a known sexual harasser to replace the guy she fired for not firing her BIL. The harasser worked only two weeks before resigning or being asked to leave, and Palin gave him a $10,000.00 severance bonus.