Local travel assignments and taxes?

[goyetj]

Hello,

I am a new member and appreciate the chance to ask you guys questions. I live about 50 miles north of minneapolis and have looked into "local travel" positions. I have not ever done travel before. The company says it can give me a large weekly stipenp, per law, because my assignment is over 50 miles from my home. they said this is tax free. I told them i will be going back and forth home every nite and they said it was ok. Is this right?? Is there a predetermined weekly tax free stipend, or per diem, that can be given, or am I supposed to be using that money for hotels, meals, etc? will the IRS ask me for receipts of what i did with the stipend?

I am supposed to get back to them asap, but am nervous. plz help..

thx,

jgoyett

[RRN]

Hello,

I am a new member and appreciate the chance to ask you guys questions. I live about 50 miles north of minneapolis and have looked into "local travel" positions. I have not ever done travel before. The company says it can give me a large weekly stipenp, per law, because my assignment is over 50 miles from my home. they said this is tax free. I told them i will be going back and forth home every nite and they said it was ok. Is this right?? Is there a predetermined weekly tax free stipend, or per diem, that can be given, or am I supposed to be using that money for hotels, meals, etc? will the IRS ask me for receipts of what i did with the stipend?

I am supposed to get back to them asap, but am nervous. plz help..

th

There is NO 50 mile rule per the IRS..

If you go home every night you are NOT entitled to any travel pay except if they want to give you mileage pay. You can not claim M&I either..

Check out http://www.irs.gov Publication 463.. This company wants to give you money tax free because they won't have to pay their half of FICA and therefore they will save money.

Don't do it...