Housing allowance question

[theresa_b]

Hi all!

I have, what may seem like a stupid question, but if you take an assignment, and plan on staying in that area for 6mos - 12mos, can you rent your own house for that time and still receive a housing stipend?

Thinking about starting to travel and I have ALOT of questions, but if someone could help me out with this first one, I'd really appreciate it.

Thanks!!

Theresa

[caroladybelle, BSN, RN]

When someone goes on a travel assignment, do they necessarily HAVE to own or be renting a house in a "home" location? Or, can they take a stipend or accept the housing, and not have any other "home" location?

You don't, but if you do not have a "tax home", you will have to pay taxes on the money that company pays for your housing/stipend/utilities etc. It is considered part of income.

Some people own a home, try to use it as a "tax home" and rent it out to others while on assignment, to save on taxes. However, legally if you rent your "tax home" while on assignment, that makes it unavailable to be "your home" and that disqualifies you from using as a "tax home" while rented to another.

You also have to return to your "tax home" periodically, work in that area periodically or at least go off the road back to it for a period of time.

In my case, I share my mother's (on title) home, contribute a significant portion of money to monthly upkeep, receive all mail there, vote and have car titles there, and yearly provide money for improvements/repairs (reroofing, replacing all windows, etc.). While there is no "set" amount, I believe that it has to be several hundred dollars a month. I also work periodic assignments there.

Some people try to scam, by "living" with their parents, but making no significant financial contribution or by renting their "tax home". The IRS can bust you big time if you get caught.

Or they exceed one calender year in one locale - that can automatically revoke having a "tax home" in another state.

[sandals]

when you get the housing stipend as a different entity on your paycheck, is it still considered as income and taxes are taken out of it or is it in the form of a 1099 and you will have to pay taxes on it yourself at the end of the year?

[oMerMero]

when you get the housing stipend as a different entity on your paycheck, is it still considered as income and taxes are taken out of it or is it in the form of a 1099 and you will have to pay taxes on it yourself at the end of the year?

I had taxes taken out of mine because I did not have another place to consider my tax home. Therefore my housing stipend was taxable and the taxes were taken out with each check.