Birdy1257

I have been a travel nurse for just over a year now-after doing some tax research I was wondering if anyone can help with some questions regarding the per diem pay.Most jobs allow a per diem (lodging + meals and incidentals) if you travel a certain distance away from your tax home. Travel companies sometimes pay you for the meals and incidentals in a "tax advantage plan" into your check. My company pays $35/day but in the cities I've traveled the government rates are $71/day, so last year I was able to write off the difference in my taxes. My question is about per diem and lodging allowances-you can either take the company housing or stipend (which I take) and it is tax free. Since the lodging amounts are fairly high in some cities, could you decline housing or a stipend all together, have their amount be put back into your hourly rate so you can claim the high per diem rate at the end of the year? It may be a slightly higher tax bracket but the amount made off of claiming the high per diem outweighs the higher amount paid in taxes.For example:Hourly rate in Boston:$20/hrHousing stipend: $2400/monthMEI paid: $35/day So I make approx $5400/month after taxes. If I were to decline the tax free housing or stipend and have the $2400 put back into my hourly rate, it would be higher in taxes but I could claim the full per diem.Lodging per diem in Boston is $183/day for July...plus the $71/day for MEI = $254/day per diem maxMy hourly rate would change to $36.67 fully taxed with no housing so my checks would be approx $4900/month (with the $35/day MEI my company pays)So I would be able to write off the full per diem for lodging of $183/day x 91 days (for 13 week contract) = $16,600 plus the difference of the MEI 71-35 = $36/day x 91 days = $3276... that adds up to about $20,000...Is that even legal? Does anyone know if there are caps for how much lodging/per diem you could write off??Would a tax lawyer be able to answer those questions?Thanks!