New tax bill and reimbursement

[MattyIrie]

Hey all,

As many know the new tax bill has a huge chance of being passed, as this is going to change almost everything tax wise, anyone know if reimbursement for traveling from tax home will change? I've only read 1 article saying they are doing away with most reimbursements for lodging, meals etc... If passed, the bill will take effect Jan 1 2018.

Any thoughts? This should be discussed.

Tax Reform Proposals Will Influence Staffing Agency Reimbursement Policies | The Staffing Stream

[Argo]

I have been told it will not change our situation.

[Spongecake]

I agree, this will change everything. It looks like travel nurses won't be able to deduct travel, meals, job expenses... everything your recruiter sells as a job perk! What's really surprising is that one recruiter I talked to didn't seem to be aware of the implications for nurses. I would trust the tax professionals over the recruiters though. I am watching the TravelTax website for updates. It looks like traveling staff will be paying more in taxes than they used to, and that the more money you make, the bigger the tax cut you get. I wonder if I should be asking for a higher taxable income.

[NedRN]

It looks like TravelTax's 2018 summary is still a work in progress, but for the vast majority of travelers, the changes are a small plus for travelers who don't itemize. The compensation package and benefits from agencies will remain the same. The plus is that your standard deduction almost doubles from $6,300 to $12,000, while your personal exemption goes from $4,050 to zero: a net gain of $1,650 of gross income not subject to federal income tax.

Travelers that itemize aggressively will lose the ability to deduct mileage (unless you are working nearby home, most travel stipends do not cover the real cost, nor the commute from remote housing to remote job site), and M&IE (meals and incidental expenses sometimes called per diems) max local amounts if the agency provides a lower than allowed amount.

I doubt there are very many travelers who were doing this unless they are using a specialist like TravelTax and also have a mortgage and an interest deduction.

All the other tax changes will affect travelers exactly the same as staff nurses.

It doesn't look like this tax bill is going to affect a decision to travel versus staff, and the ability of agencies to structure compensation for the benefit of travelers will not change one bit. Fundamental rules about having a tax home to be eligible to receive tax free stipends have not changed (fair warning to those who do not have a tax home).