Tax Advantage

For a tax advantage to be legal (according to IRS guidlines) you MUST duplicate expenses when you are on an assignment. That means that you must have a tax home (with expenses that are paid) far enough away from the assignment that you cannot travel home at the end of the workday. If you qualify, then a portion of your hourly wage will not be taxed; but, your reportable hourly wage will be lower and any overtime would be based upon the taxable, lower hourly rate. You can check out the http://www.irs.gov website and look for the travel business MM&I table to see the maximum per day untaxable rate allowed.

Don't always trust a recruiter to give you accurate advise when it pertains to qualifying for tax advantage, companies love it because they pay less payroll taxes and overtime rates. Also, if you ever have to get workman's comp, disability, etc, it will be based only on the taxable wages. Travel nurse tax experts are out there & it would be wise to consult them before doing anything when it comes to CCTC giving tax advantage. I read on a travel nurse forum (delphi travel nurse and therapists) that they suspended it for a while because they got in trouble with the IRS & only recently have started in again with doing it-be careful.

We have also worked w/ CCTC. And they are pushing the Tax Advantage. I was a little leary because was told "can't tell you alot of things because Uncle Sam is always listening". That scared me.

We aren't with them on this assignment, and not sure what do to. What is best.???!!

I am just confused about the decrease in pay. Where I am at now, I can pick up overtime (time and a half). Plus I hear that this is not good for social security or disablility. In the long run, after I get my taxes back, won't it be less money? Any good tax consultants out there for travel nurses??? Thanks

I am just confused about the decrease in pay. Where I am at now, I can pick up overtime (time and a half). Plus I hear that this is not good for social security or disablility. In the long run, after I get my taxes back, won't it be less money? Any good tax consultants out there for travel nurses??? Thanks

There is a very informative tax guy out here occasionally on this board and on others who goes by TravelTax. I think a lookup on that name may also get you to his own site.

I'm also with CCTC and dealing with trying to figure out exactly what the impact of their new pay plan will be. I'm particularly bothered by the effect on OT rates and annual SS earnings (not that many years left to make up for lower annual pay). My recruiter has been pretty upfront in admitting there are things she is not sure about on this and is checking into getting the answers for me before I accept another contract.

Well, my recruiter is telling me that I am crazy for even thinking about not taking it. And at first, she told me that it wasn't an option.

Google traveltax and sign up for one of their free phone seminars. It explains a lot.

Tax advantage can be ok I think -- but it is tricky and you must abide by the rules. I also think you may be more likely to be audited so be careful.