Looking forward to my first travel assignment yet I am still confused about Tax Advantage Program with lower hrly rate vs high hrly rate and no Tax Advantage Program.......and is this include Tax free stipend??? I would appreciate any info..
confused in sc
Dec 1, '06
Rather then be taxed on those items that are not taxed when you are a Traveler (working > 50 miles from your home), some companies are offering the incentive payment. Remember, you still need to qualify as a Traveler with Uncle Sam or you will end up pay those taxes that were "diverted" at tax time; you could end up owing big taxes or it may be a real "tax advantage" or bigger pay check for you.
Please be sure to check with your CPA to be sure you qualify.