Newbie looking for itinerant traveling advice.

[JrhSizemore]

Hello all! I am about four weeks into my first travel assignment and have been scouring over articles, files and advice on my days off. My dilemma is I have an apartment in the bay area of California that is currently my tax home. Which, as most of you know, means its costing me a lot of moola. I want to get rid of it and be an itinerant traveler. I don't want to 'rent' with family or friends back home. I want to be free! Lol. My impression is that agencies don't really like this idea, I assume it must have something to do with their cut. Can they still set me up in a place if I have no tax home and I just pay taxes on what they are providing or is that not an option as an itinerant traveler? Anyone else itinerant and have advice and experience to share?

[NedRN]

Yes you can, and they must tax you appropriately. Most will be reluctant as the increased taxes also hurt them - just the hidden payroll taxes such as the employer share of FICA, unemployment, and worker comp. That ten percent bit on the stipends means that their share of the profits from your work will be lower if they pay you the same as travelers with tax homes. So some agencies will quote you (somewhat illegally) a lower hourly to make up for those lost profits.

Some agencies will have no problem paying you this way and the quote won't be any different. Of course this may mean that they have a larger gross profit margin than other agencies, effectively underpaying all their travelers.