Away For More Than A Year (Need Advice)

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Good Morning All. Need some advice from all you travelers out there that have been away from your tax home for more than one year. I am currently on assignment that will end before my one year away from my tax home. I really don't want to go back home but am concerned that taxes will kill me if I don't return. I know either way I will be taxed once I go home but I can take the housing allowance and find something within my budget back home without getting tied into a lease. Or, I can go Interim Pool locally and find my own housing. I have been told I'll have guaranteed hours with Interim Pool, can only cancel once per month which is pretty much how my current contract is.

For those of you who have been gone from your "tax" home for more than 1 year did you feel the pinch once taxes were being paid especially with housing. Need some input so I can decided what to do. I think, I'll make more going Interim Pool but am not 100% confident.

Thanks for all who reply.

bagladyrn, RN

2,286 Posts

Specializes in OB.
Good Morning All. Need some advice from all you travelers out there that have been away from your tax home for more than one year. I am currently on assignment that will end before my one year away from my tax home. I really don't want to go back home but am concerned that taxes will kill me if I don't return. I know either way I will be taxed once I go home but I can take the housing allowance and find something within my budget back home without getting tied into a lease. Or, I can go Interim Pool locally and find my own housing. I have been told I'll have guaranteed hours with Interim Pool, can only cancel once per month which is pretty much how my current contract is.

For those of you who have been gone from your "tax" home for more than 1 year did you feel the pinch once taxes were being paid especially with housing. Need some input so I can decided what to do. I think, I'll make more going Interim Pool but am not 100% confident.

Thanks for all who reply.

I'm a little concerned by your statement above that "I can take the housing allowance and find something within my budget back home". If you do not already have a place "back home" for which you are paying rent,mortgage or other substantial expenses and to which you can return (not rented out) then you DO NOT have a tax home now and should have been having taxes taken out already on your housing, etc.

If I have misread the above, sorry. In any case you may want to check with a tax professional such as Travel Tax who specializes in travelling professionals to compare options and decide which way will be more financially advantageous.

Specializes in ICU/CCU, PCU, Neuro, Telemetry.

I guess I should have clarified.......I have a room that I rent back home......because of changes that have recently occurred, if I was to return.......it would not be what I left. Don't want to go into too much details here. I know that once I go home, I'll still have to pay complete taxes and still have to pay my rent at home but thought I'd find somewhere else to live due to the circumstances.

Specializes in Peds, ER/Trauma.

I smell tax fraud here.... If you are away from your tax home for more than a year without returning to work or conduct other business there, then you can no longer call that your tax home...

Specializes in ICU/CCU, PCU, Neuro, Telemetry.
I smell tax fraud here.... If you are away from your tax home for more than a year without returning to work or conduct other business there, then you can no longer call that your tax home...

I haven't been away for more than 1 year.....just wanted to get others thoughts, those that have been gone for more than 1 year.....how much did the not getting a tax break affect them. My recruiter is trying to tell me I won't do as well by going Interim Pool but my figures tell me I will.

I know other travelers that their companies are still giving them a tax break in one form or another, not sure if they are getting their hourly rate increased but know that their take home pay wasn't affected too much. I find it hard to believe that if you have to pay taxes on the housing that your travel company gives you and you no longer get a per-diem tax break that if that is now included in your income that you won't get hit hard for taxes.

bagladyrn, RN

2,286 Posts

Specializes in OB.
I haven't been away for more than 1 year.....just wanted to get others thoughts, those that have been gone for more than 1 year.....how much did the not getting a tax break affect them. My recruiter is trying to tell me I won't do as well by going Interim Pool but my figures tell me I will.

I know other travelers that their companies are still giving them a tax break in one form or another, not sure if they are getting their hourly rate increased but know that their take home pay wasn't affected too much. I find it hard to believe that if you have to pay taxes on the housing that your travel company gives you and you no longer get a per-diem tax break that if that is now included in your income that you won't get hit hard for taxes.

Just because their company is still giving them the tax break does NOT mean that it is legal! If the IRS audits it will be the traveler who is penalized - not the company! Your recruiter is not a tax expert and should not be the person you rely on for expert advice on this subject.

Specializes in Peds, ER/Trauma.

I don't have a tax home, so I don't get tax-free housing... My company still provides me with free housing, but I have to pay taxes on whatever they end up spending on me for housing. Usually, I end up getting an extra $200/month or so taken off my check in extra taxes (it varies depending on which area of the country I'm in & how much housing costs). For me, $200/month in extra taxes is much cheaper than trying to maintain an apartment in my home town, since I do not own a home...

Like baglady said, just because your company is doing something, does not mean it's kosher with the IRS. I would contact a travel tax professional at http://www.kobaly.com or http://www.traveltax.com to make sure everything you're doing is on the up-&-up with the IRS- you don't want to get stuck with a huge tax bill at the end of the year, or get audited and accused of tax fraud....

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