untaxed income-what to do come tax time?

[witty]

I'm a travel nurse. I've been getting almost 2/3 of my pay untaxed. For example, $13 is my "base rate" which I get taxes taken out. But then, for compensation, like housing and such, I receive another $26/hour untaxed. My recruiter says he's paying me the maximum compensation he can so any overtime is just time and half of the base rate.

Recently I was told to beware of this type of pay because the IRS only allows so much a month to be given untaxed for housing allowance and such and what they allow certainly isn't 2/3 pay. I need to know more about this. What should I do when I do my taxes? Do I claim that as taxable income? If so, what's the use of getting untaxed income if I have to pay taxes on it later. Somebody please enlighten me because I don't want auditted with fines and penalties.

Thank you.

Witty

[Spidey's mom, ADN, BSN, RN]

You really need to talk to a tax accountant for legal advice. That way you'll get the real story.

steph

[suzanne4, RN]

Suggest that you speak with a tax specialist as soon as possible.

Sad to say but you are going to have a large tax bill that you are going to be hit with.

And the way that you are being paid leaves many unanswered questions in the first place. What you can take as tax-free in housing is also dependent on where you are working. If you are in some small city in the south, then you are not going to be able to take $4000 per month in housing, if you are in CA, then you can. But with pay like that, you have gotten the royal screw from your recruiter, they have not done you any favor at all.

Expect to get audited as well more than likely, the pay that you are receiving is required to be the customary for that area, or it looks like you are avoiding taxes that need to be paid and that makes one subject to further scrutiny. $13 per hour is not customary anywhere in the US for a nurse's hourly pay.

If you do not have a legal tax home someplace else, then you cannot take the housing as tax free either. We are unable to provide legal advice to you in this forum either per the TOS of this forum.

Thread being closed.