Question about housing stipend, per diem and taxes

RNERHOUSESUPOR · May 13, 2009

19.50 is not a good pay rate anywhere that I know of. Even if you are getting to claim the perdiem rates. It's all smoke and mirrors when it comes to getting the best rate from the travel companies. Some pay a little more here and then take away somewhere else. Find the best pay, housing stipend and travel money where you want to travel to and then be happy to have a travel assignment.

If you have not traveled before, make sure you have a tax professional review your tax requirements, and possible deductions. Keep all of your reciepts for anything that may be associated with travel expenses, work expenses and especially "duplicate" expenses, while on assignment away from home. Remember if you stay in one place too long, it's no longer a travel assignment, even if you still own a home somewhere else.

"Perdiem" is the amount of money you can claim as a Tax deduction for working away from home and are required to seek lodging and meals while away. There are different amounts depending on where you are staying. Look up IRS Perdiem Rate Chart for the area you are in.

Hope that helps, remember I am a travel nurse and not an expert in anything but my life.

dimplechinRN · May 18, 2009

Another thing to be concerned about with the low hourly wage is the amount your putting into SS for when you retire. I actually had a recruiter tell me about a position in Cali. that paid some rediculous hourly rate like $10 or something close to that but they offered a crazy stipend amount and another allowance for meals wich made the deal seem sweet but when I asked if the stipend was legal he told me something like they are allowed to give so much of an allowance but I eventually told him no cause I need to worry about not only making money now but also getting a decent taxable wage to contribute to my SS retirement,But then again with the way things are Social Security may be depleted when I'm retirement age...LOL :twocents: :banghead:

jstr · Feb 15, 2010

What would be your advice as the next step? Would you ask for a higher base pay than $19.50? or higher housing/per diem? I too am confused with how the hourly salary is calculated without being "illegal". I don't want to have to pay back a high amount at the end of the year.

Spiderella · Feb 21, 2010

You should ask for a base rate commiserate with other nurses in the area. The tax free stipend is supposed to be on top of that. This way, you won't raise red flags when you file your taxes, and you will still have some extra money to save up.

The meals, and cost of living allowance is untaxed. The taxed portion is your hourly rate.

Wawanurse · Mar 5, 2010

Technically speaking, every week you should be getting about $250 tax free - over and above your housing - this is the perdiem, tax avantage program. Depending on your age, whether you are head of household (single parent), this is a big disadvantage, but it has been sugar coated to look good. I loose about >#500 per month between 401K and SOcial Security ... yet I have NO choice ... even if I do not want tax advantage, I still have to take it. It is the agency's way of charging the hospital less in these difficult times ... yeah!!!