What's with this Tax Advantage?

[aberrn]

I am in the process of finding a travel job and two recruiters rave about this.

Of course they talk like used car salesmen at 90mph,so it's hard to keep up!!

Do I have this right?. Say you make $30/hr,you are only taxed on the first $10,not taxed on the remaining $20.

So at the end of the year your W2 shows you made only $20,000 and not the $60,000 you really earned.

I talked to another recruiter[who I trust] who said "Absolutely stay away from this,it's a red flag to the IRS and I've had nurses who have been audited"

As I am sure the IRS wouldn't believe a nurse working full time only made $20000..

Any thoughts,comments.

[eddiepearl]

Here's the people I use to help with my travel taxes:

http://www.traveltax.com/

Here's the IRS explanation:

http://www.irs.gov/taxtopics/tc511.html

Following is the table used for daily deductions. Once you have clicked on the following site, click on Per Diem, then click on Per Diem Rates. A map of the US will pop up. Click on the state where you are travelling. Under the MEI column, you will see the automatic deduction for the area in which you are working. These amounts can be deducted without IRS audit interference. The govt automatically assumes that's the average out-of-pocket expenses on a daily basis for each metropolitan area.

http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8203&channelId=-13224

Hope these web sites are helpful! And not against the rules to post!

[justme1972]

I can tell you...call the IRS personally.

They have a hotline number where you can call and ask general tax questions...you would be suprised on how helpful they are.

However, I can already tell you...if it's income from a job, you have to claim it. I cannot even believe a recruiter would tell anyone such a thing.

There is a very fine line between income and deductions.