question about subsidy and taxes

Specialties Travel

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hi all. im currently on my first assignment in so california from PA. my question is how does the subsidy that i am receiving for housing get taxed at the end of the year, or does it even get taxed? My roomate (also a traveler) and I were planning on splitting the remaining subsidy (after the 2nd bedroom got paid for and the cable/phone). but I am concerned about what will happen come tax time for myself. she is also receiving a $2000 completion bonus ( i am not) and im now feeling as if she is making out way better and why do i have to split the money that comes in my name. am i being rediculous? were really at eachothers throats constintly about money. just a tip to others: know your friend well before deciding whether or not to live with eachother...

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I am very reluctant to allow tax and legal advice to be given on the Bulletin Board. Tax info, like legal advice, can get very complicated, litigious, and expensive in the long run when you get advice from a non-expert in the field; you need a CPA to review your taxes. That being said, it would be nice to hear of similar situations from posters who have had this same event.

Posters???

nightngale1998

Moderator of the Travel Nursing Forum

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I was told that if you will be working more than 50 miles from your permanent residence that your subsidy will not be taxed. I am from South Jersey but work in NYC and was told that if I stay in NYC for longer than a year I am considered a permanent resident of NYC and will be taxed on the subsidy. Its very confusing to me and I am going to investigate it further so I am not screwed at end of year.....

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Specializes in ICU/CCU/ER/CVICU.

Ok, first and foremost, I AM NOT A CPA. That being said, here goes.

First, research the going per diem rate for your area on the IRS site. You CAN deduct either that rate or what you pay...whichever is higher. If you deduct what you are paying now, HAVE RECEIPTS!!!!!

You CANNOT exclude what the company pays you from income. If the company pays your housing, it's a 'like-kind' exchange and not included in your income. If the company pays you a subsidy and it exceeds the IRS guidelines, it becomes income.

GET YOURSELF A GOOD ACCOUNTANT, KEEP GOOD RECEIPTS AND DON'T LET SOME TWO-DAY WONDER FILE YOUR TAXES.

(You really don't want IRS as a correspondant)

"The Wolf"

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