How much will I owe in taxes?

cally527, RN · Apr 2, 2012

Did you have to fill out any tax form when you were hired? If so maybe you claimed too high of a number and that is why the amount of taxes being deducted is so small.

dreamworx07 · Apr 5, 2012

30.00 an hour stipend, and you are considered local which means you can't deduct housing, utilities, travel expenses, I think. You will get a huge 1099 at the end of the year and no "legal" expenses to take. I think I would have taken a smaller stipend... But just my thoughts. Set money aside to pay taxes. Would enjoy others thoughts. We all hate to pay taxes!

79Tango · Apr 5, 2012

Its possible she hasnt heard of any former nurses owing taxes because they havent been around long enough. They/you might get away with it this year but you really need to be careful. Most reputable companies will make you fill out a questionaire that qualifies you to recieve the perdiem. All it takes is one disgruntled traveler to report them, which could bring the heat your way.

dixRN · Apr 7, 2012

You are being paid as traveller with a tax home but you do not qualify for this even if you have a tax home due to the fact you are only 10 miles from home. You are going to be slammed on taxes. Your company has no business paying you this way & not taking out appropriate taxes. Start putting aside 25% of your income because you are going to need it to pay Uncle Sam.

NedRN · Apr 9, 2012

The agency is very unlikely to 1099 the per diem. If they do, they will have to demonstrate a minimum amount of due diligence that you are working away from your tax home requiring overnight stays. They cannot do this and will be liable for not withholding taxes. In fact, after an appropriate amount of time, you can report them to the IRS if you want to. They are doing this for all travelers, only about half of whom are estimated to be working away from a legitimate tax home. You would receive a percentage of all money recovered.

Legally, you do owe taxes on everything received in your case that was not professional expenses reimbursed such as your nursing license. You do have a choice to make. Do nothing and it is extremely unlikely that anything will happen. This money is not reported to the IRS. If you turn them in, you may have to pay taxes on that money. If someone else reports them and the IRS investigates, you are still very unlikely to get into trouble. The IRS will go after the agency first, much easier than tracking down every individual affected traveler and auditing them. Plus the agency has more money, and perhaps even an accountant with good insurance for this kind of event.

But legally, you are required to report all income to the IRS. And despite the agency labeling this money as per diem, it is actually income.

dixRN · Apr 9, 2012

If you go to delphi forums under travel nurses there is a heading for tax questions. There is a respiratory therapist turned travel tax specialist who will answer your question. He gives excellent advice. All I know is you do NOT want to be on the wrong side of the IRS. Don't forget they charge interest on any money owed them.