Hello, I have a question I am hoping some experienced travelers can answer.
Currently, I am on travel assignment and I recieve the housing subsidy (which is tax free). Now my concern is, at the end of the year, will the travel companies report the subsidy on my W-2. And if so, doesn't this become a problem with taxes, since the gov't may say what was earned for the year vs. what was paid in taxes is not enough???
Sep 13, '06
If you can show that you have duplicate (have an apt or home elsewhere) you will not have any problems. It's when you don't, I've heard you have to pay taxes. There is a good tax service that deals with travelers by the name of Kobaly. Check it out. You can locate them on the internet. They will communicate with you via email and snail mail/faxes.
Sep 14, '06
If you have a qualifying tax home ( a little more involved than just renting an apt. somewhere) you are not taxed on the housing subsidy because it covers the duplication of expenses while working away from your tax home at a distance too far to commute each day.
You should definitely contact an accountant or tax service that specializes in contract workers to have this explained to you.