Wish to travel to a specific area. Worked last winter on a travel contract. Have an opportunity to work in the area for a much higher hourly wage. No benefits, no housing. Are the tax benefits the same or will I be paying a higher income tax since I am getting a higher hourly wage instead of the housing subsidy?
Nov 13, '07
You will end up paying more taxes- if you have a tax home & take advantage of a housing stipend, this is tax-free because it would be a duplicate expense of your existing rent/mortgage at home. If you don't take a housing stipend, and just make a higher hourly rate, that is considered taxable income.