I am a new traveler looking for my first assignment.
I am in need of some sound advice and education on the travel world. I'm having trouble understanding the entire tax home, stipend, taxable hourly rate talk.
From my initial understanding I thought if i let the company find housing for me then my pay would be from my taxable hourly rate and my perdiem for M&I. The taxable was usually in the 20's from what I been receiving from the recruiter. If I decide to take the stipend and find my own housing then I would pay for my housing on location AND my tax house at my permanent location? Ok if this is true I understand it but it still sounds difficult paying two seperate homes with a stipend and yet still have a low hourly rate.
On the other end a new recruiter from a different company stated a low hourly rate of around $18/hour, per diem of around 500/week which totaled about $990 after taxes. in this package they would provide housing for me but the recruiter stated I still would have to pay for my permanent tax home out of the $990/week, 2000/biweekly... How is that even worth while to travel? I feel like i'm getting low balled being a new traveler especially reading the pay online from various sites.
Lastly I also was told If I have the company find housing for me and do not have a permanent residence then my housing and everything else would be taxed. How when I won't even be receiving the stipend money?
So is this information correct? If I receive a stipend I'd pay for 2 homes, If I don't receive a stipend I still have to pay for 1 home?
OK I don't know what a "tax home" is, I was just responding to what I know about the recieving a tax-free housing stipend which I think is what she was asking. I would like to point out that I am not a tax attorney...
Legally, in order for the housing stipend to be tax free you should be paying a mortgage on a home. If you are not paying a mortgage and your housing stipend is tax free, if you are audited by the IRS you could owe Uncle Sam a huge chunk of money at the end of the year.
OK I don't know what a "tax home" is, I was just responding to what I know about the recieving a tax-free housing stipend which I think is what she was asking. I would like to point out that I am not a tax attorney...
If you are going to guess about such an important topic, it is important to say so. Even experienced travelers can find the tax home topic confusing. Starting a post with "Legally,..." sounds authoritative to a new traveler and will confuse everyone.
BTW, a mortgage is not a tax home. For example, if you rent your home out, you do not have a tax home. If you are a homeowner without a mortgage, and do live at home, you still meet criteria. If you have an apartment that you live in, you still meet basic criteria.
NedRN
1 Article; 5,785 Posts
Seriously? You are just making stuff up. You don't need a mortgage to have a tax home. That is silly.