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Question about housing stipend, per diem and taxes



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Apr 30, 2009 02:54 PM

Question about housing stipend, per diem and taxes

by kat29

Sorry to ask what seems like the same questions others are asking but for the life of me I can't find a clear answer on this forum. I'm talking with a recruiter for my first travel assignment. I have NOT signed or agreed to anything as of yet. My question is about the nontaxed vs taxed amounts. Ive been offered this...

$19.50/hr (which seems absurdly low since thats the hourly I make as a staff nurse in MO)
$2800/mo housing
and the usual 1.5 after 8hr & OT (its California)
$.55/mile travel reimbursement

Heres my question. I know that the housing is tax free (yes I have a legal tax home elsewhere). But she mentioned that the IRS allows a certain amt of money a month tax free (she mentioned around $3000). Is this what the IRS calls "per diem" and is it untaxed IN ADDITION TO the housing stipend?

Does this mean that ~$3000 (or whatever the IRS allows) of my HOURLY wage is untaxed? AND my housing stipend is also untaxed? And does this make $19.50/hr a decent rate for a California area.

thanks to anyone that can help me understand this!


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2 Comments
No. 1
Old May 13, 2009, 03:03 PM

Default Re: Question about housing stipend, per diem and taxes
19.50 is not a good pay rate anywhere that I know of. Even if you are getting to claim the perdiem rates. It's all smoke and mirrors when it comes to getting the best rate from the travel companies. Some pay a little more here and then take away somewhere else. Find the best pay, housing stipend and travel money where you want to travel to and then be happy to have a travel assignment.

If you have not traveled before, make sure you have a tax professional review your tax requirements, and possible deductions. Keep all of your reciepts for anything that may be associated with travel expenses, work expenses and especially "duplicate" expenses, while on assignment away from home. Remember if you stay in one place too long, it's no longer a travel assignment, even if you still own a home somewhere else.

"Perdiem" is the amount of money you can claim as a Tax deduction for working away from home and are required to seek lodging and meals while away. There are different amounts depending on where you are staying. Look up IRS Perdiem Rate Chart for the area you are in.

Hope that helps, remember I am a travel nurse and not an expert in anything but my life.
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No. 2
Old May 18, 2009, 04:06 PM

Default Re: Question about housing stipend, per diem and taxes
Another thing to be concerned about with the low hourly wage is the amount your putting into SS for when you retire. I actually had a recruiter tell me about a position in Cali. that paid some rediculous hourly rate like $10 or something close to that but they offered a crazy stipend amount and another allowance for meals wich made the deal seem sweet but when I asked if the stipend was legal he told me something like they are allowed to give so much of an allowance but I eventually told him no cause I need to worry about not only making money now but also getting a decent taxable wage to contribute to my SS retirement,But then again with the way things are Social Security may be depleted when I'm retirement age...LOL
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