4. Is my per diem travel allowance taxable in Canada and/or the U.S.?

Assuming that the per diem travel allowance relates to travel to or from a city other than city in which your team is based, it is likely to be exempt from tax in both Canada and the U.S.For Canadian tax purposes, a “reasonable” amount of travel allowance is exempt from tax under with respect to employment duties conducted away from one’s principal place of work.

For U.S. tax purposes, a deduction is permitted for “ordinary and necessary” travel expenses while away from home in pursuit of a trade or business. The IRS publishes tables as to the maximum levels of per diem allowances for particular urban areas that can be excluded from taxable income without a requirement to collect supporting documentation to substantiate the actual expenses.