Wages without a tax home

NedRN · Jul 21, 2015

The pay package should look exactly the same, just more taxes withheld. Should is the operative word. Because the agency will have to pay more employer side FICA if all wages are taxed, they may pay a bit less overall gross past, perhaps 5% less. Not technically legal to do that, but that is how some agencies will play it.

Lnr567 · Jul 21, 2015

So the company I spoke to quoted (with a tax home)- $19/hr plus $2100/month for housing. $2100 per month is $14.58 per hour worked. So that means my total hourly pay if I don't have a tax home would be $33.58 before tax?! That sounds terribly low for Chicago's cost of living. I'm making the same rate working staff in Houston, and the cost of living is substantially lower, plus no state income tax. Is my math wrong? Because that might not really be worth even going for $33/hr.

I feel like a total of $40-45/hr if I'm paying taxes on 100% of my pay would be more appropriate. Thoughts?

Lnr567 · Jul 21, 2015

Another question- would paying my parent's monthly utility bill qualify me for being able to declare it as a tax home? That was suggested to me by another traveler but I'm not sure if that's legal. I'm not trying to get audited but I'm also not trying to get less compensation for (literally) going out of my way to work harder than I do as a staff rn.

NedRN · Jul 21, 2015

Nope, a utility bill is not a tax home. Sure would be nice if it was that easy to circumvent tax rules!

Of course you have to make the best financial decision for you if money is the key point. What other offers do you have? It kind of sounds like you are putting all your eggs in one basket here.

Lnr567 · Jul 21, 2015

I've only gotten a quote from one agency so far. Are my pay expectations realistic?

NedRN · Jul 21, 2015

With only one quote from one agency in one market, I don't know how you could have reality based expectations. You may also find your quote is incomplete. Were meals and incidentals included in the housing stipend? What about round trip travel?

As a general rule, once you have completed a successful first assignment, you are proven and more marketable and should find rates getting better.

Chicago is a funny market heavy in per diem. The traditional agencies have very few contracts. If Chicago is a must, I would try some local agencies there.

Lnr567 · Jul 22, 2015

Thanks!

Lnr567 · Jul 24, 2015

I actually have one more question. I have about $5,000 worth of furniture and TV's which I had planned to sell all of before moving. However, my parents recently bought a second home and moved most of their stuff to the new house- but plan to keep both. If I furnish my parents older home with the $5,000 worth of furniture and TVs, can this be seen as a financial contribution large enough to qualify for a tax home? Even if I must give it to them permanently to keep? $5,000 over the course of one year comes out to $417 per month, which would certainly cover the cost of renting one bedroom in a home in that area.

NedRN · Jul 24, 2015

You have to live there. Fair market rent can be paid by barter although the IRS won't like it.

BD-RN, BSN, RN · Jul 25, 2015

Go to the travel tax website. They have tips on what qualifies for a tax home there.