Housing stipends

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Hello everyone!

Has anyone ever taken the housing stipend and lived with a friend/relative? Im considering a job in WI about 80 miles from where my permanent residence is and was thinking about taking the housing stipend and staying with friends and then going home on the days I dont work. My main question is how will I be taxed at the end of the year? Should you "pay rent" to the relative/friend you are living with? Can i still take the meals/incidentals? Ive researched the irs website and its clear as mud ;) What are your experiences?

Thanks!

My experiences are thats the best way to make the most out of a travel job! The reason the Gov't set the Per Diem rates is so that you do not have to provide housing reciepts. You should be good to go. Your taxes at the end of the year will reflect whatever your hourly rate is. As long as its not $10/hr you should be fine.

According to IRS rules you can legally only take the stipend for the days you are away from home. If you stay away from home for 3 nights, that's the amount you are allowed to take (you are still entitled to the money, it's just that the 4 days worth is taxable income). The money is given tax free because it is assumed you are maintaining 2 households while you are away on assignment. Read more on www.traveltax.com , I've found it to be a good go-to website.

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