I"m confused - take a look at this package...

Published

and please break it down for me. how is my weekly comp going to be 1904 after taxes when i am only getting 17.52 for 36/hrs/week....and then another 26.28 for the last 12 hours is i sign for a 48/hr schedule?

what is the 1246 per diwm all about? this is a travel assignment, not per diem. where is my housing stipend?

and why is it that, these companies pay low hourly rates, but typically offer a generous housing stipend? i have never had a housing stipend....it is 100% free money, right? i don't pay rent at my homebase, nor do i pay a mortgage, taxes, etc, etc. so i'm concerned that i will have to pay back some of the stipend at the end of the year?? of course, with the money i get, i will have to get an apartment where my assignment is, so i don't see how i would have to report it......

this is a new agency i'm with, i called him to see if he could explain this, but he is gone for the day. thought i'd see what you ladies think - does it suck?? this assignment is in arizona....med/surg.

comp package is as follows:

travel reimbursement: up to $500 on first paycheck

$150 i will pay for 2 day extended stay housing in phoenix while you wait for your az license to process.

$218 az. license reimbursement on first paycheck

this represents pay with full per diem and low hourly taxed 4 week assignment.

  • $17.52 for the first 36 hours ,$26.28 for the last 12 hours, $1246 per diem ($114 lodging + $64 meals & incidentals = $178 x 7days) gross comp $2094
  • weekly comp $1904 after taxes

gross comp (pre-taxed) then net comp (what goes into your bank account)

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Specializes in MedSurg Tele.

No you won't have to pay back a stipend. It's tax free.

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Specializes in OB.

Careful on that - the stipend is only tax free IF you have a valid tax home (not just residency). That includes such things as a mortgage or rent, significant money for the upkeep of a residence, return to the residence and do business there on a regular basis.(Just an overview - more involved than that). The basis of the tax free status of the stipend is based on the "duplication of expenses". If you do not have a valid tax home then all of the stipend money is taxable - no matter what anyone other than a tax professional tells you! Also, a very low hourly rate for the position/area of the country with an overly generous stipend amount is considered by some to be a red flag to the IRS.

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Specializes in Peds, ER/Trauma.

bag lady is absolutely correct- if you don't have a permanent residence in your home state where you pay rent/mortgage, your housing stipend IS taxable!

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Thanks Ladies,

I will consult with my tax lady about all this, but I'm curious to know....

Can I start paying my parents rent and count that? I would write them a check every month.....get the receipt and everything. It won't be for that much, probably 500/month.....

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Specializes in MedSurg Tele.

If you have proof, then you'll be ok. Receipts are your best bet

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Specializes in Maternal - Child Health.

There is no such thing as "tax free" income. Housing stipends are allowed only if you have duplicate housing expenses due to living away from your permanent home, and even then, you must show receipts in an amount equal to or greater than the stipend. Otherwise you will owe taxes on the stipend.

Contracts like this seem shady and make me question the honesty of the agency.

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I don't understand why housing in my home state should equal (or close to) the amount of the stipend when I will have to pay rent wherver it is that I travel to.

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Specializes in MedSurg Tele.

The stipend is used to pay rent plus utilities to live near the hospital and then you would have to pay rent and utilities again to your home. Agencies offer the stipend amount, are they suppose to ask how much it costs in total to live at home? Now I'm confused about the stipend.

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Specializes in Med/Surg, Ortho, Rehab, ACU-Telemetry.
Careful on that - the stipend is only tax free IF you have a valid tax home (not just residency). That includes such things as a mortgage or rent, significant money for the upkeep of a residence, return to the residence and do business there on a regular basis.(Just an overview - more involved than that). The basis of the tax free status of the stipend is based on the "duplication of expenses". If you do not have a valid tax home then all of the stipend money is taxable - no matter what anyone other than a tax professional tells you! Also, a very low hourly rate for the position/area of the country with an overly generous stipend amount is considered by some to be a red flag to the IRS.

Isn't renting an apartment/house the same as having a residency? You mentioned doing business on a regular basis. How often do you have to 'go back' to be considered a valid tax home? Could you email me with more info if you have it?

Thanks

Kathy

:redpinkhe:innerconf

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Specializes in Maternal - Child Health.
I don't understand why housing in my home state should equal (or close to) the amount of the stipend when I will have to pay rent wherver it is that I travel to.

Your stipend should not be based on the cost of living in your permanent home state. The stipend is intended to pay the cost of your temporary housing at the job location, relieving you of the burden of paying for 2 residences. If the stipend you receive exceeds the amount you actually pay (as verified by receipts) for your temporary living expenses, you will be taxed on the "overage". However, if you have no living expenses at your permanent home location, then maintaining a second residence is not a "burden", and you would not be eligible for a tax-free stipend. You would be required to pay taxes on the full amount.

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Please answer Kdblueey's question on this thread....

Also, this whole discussion about needing to go home often to do business - what? What business? And how will the IRS know if someone went home or not?

With my next assignment, I am planning on giving my mom rent, which she will claim at the end of the year. Her house will be considered my home, since I will be paying rent there. But in between assignments, I highly doubt if I will go 'home'. I will be 'home' long enough to pack my bags for a nice vacation, not long enough to conduct some sort of business.

Also, my rents between my mom's place and wherever it is I am staying at for my assignement will NEVER come close to my stipend. As you can see from the initial post on this thread, my hoursly rate will be LOW, but my stipend high. I can't spend all of my stipend on rent and have a meager 17.00/hr (taxed) for the rest of my bills. Are you positive that both rents have to come close to the amount of the stipend? If that truley is the case, I don't see how traveling is more lucrative than regular staff nursing....

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