I am so confused about an offer I received. I am working with an agency that has offered me a small hourly pay (like $15/hr) and a large housing stipend (650/wk). My recruiter says I will save money in taxes this way, but it scares me. Have you ever heard of this? Will there be problems at tax time? Thanks
May 15, '07
It may be legal if you have a qualifying tax home, but keep in mind that having $15/hr show up as your pay rate will have an effect on any unemployment, disability pay you might unexpectedly need, Soc. Security will only be taken out on that rate, that will show as your income if you should need a loan, and overtime at time and a half would only be $22.50.