Is the recruiter misleading me?

[PhillyFNP, DNP]

Check this out....I was offered a 6 week local contract at 40 dollars per hour. I was not happy with that amount so I asked for more and the recruiter said that they could not go that high. So they offered me a travel contract at the same facility, but the facility is only 20 miles away, but about a 60 minute commute due to traffic, so they said they could offer me a travel contract with the tax free per diem, etc. so that my take home would be higher. I don't know how this is possible. Here is what they said

"Because the commute can be rough from ***** to ***** with traffic – it does not go by mileage, it goes by travel time and if it makes sense for the RN to stay in the area that they will be working because of a hard commute, then I can offer a travel package. And in this situation it would make sense for you to work on the MLA package because of the commute."

Thoughts?

[NedRN]

It doesn't go by miles or commute time. To be eligible for tax free stipends the requirements of the job are such that an overnight stay is required for rest. That is the IRS standard by which you will be judged in an audit.You will be required to show some justification for overnight stays and receipts related to lodging (they do not have to equal the stipend). I don't think that will be possible.

But if the pay for travel is higher that $40, just ask them to tax the entire amount and you will be ahead over the per diem offer and get your shifts guaranteed (or should).