There are many who have no idea how the "Tax Advantage" works, too agencies or recruiters who give it, and do it wrong. The IRS allows you to take what is called "per diem", when you are working away from home, and have a valid tax home, and it is not feasible for you to return to that home daily.
Per diem is a combination of a housing allowance, and Meals & Incidentials. Incidentials meaning, newspaper, etc.
The "per diem" rates, varies by the state and county you are working in, and varies even more, depending on the time of year you are there working. The hourly rate of the untaxed amount you are given, "should" be divided by the amount of hours you have contracted to work. Anything over that amount should be the same as the tax and untax hourly rate combined, and all it should be taxed. However, not everyone follows the rules.
In order to determine the amount of your "per diem" rate the IRS allows you to take, go to www.gsa.gov
, and click on per diem rates on the left hand side of the page. It will take you to a US map, click on the state, and then look for the City or country, you are, or will be working in.
The agency does not have to give you the entire amount of the per diem rate stated, and remember, your first and last day, you do not qualify for the entire day's allowance.
Best thing to do is to consult a Tax person, who deals primarily with Travelers, and keeps up with the IRS changes.
Edited to say: If you can not find the city or county you are working in, then you must take the CONUS rate, which means "Contintial (sp)?? U. S., which is $60 a day for housing, and $39 a day for Meals &Incidentials.
Edited because I can't spell1