Ask a Travel Nurse: Can a company legally pay for my housing and also give me the approved GSA rate for per diem?
Ask a Travel Nurse Question:
Hi David, Can a company legally pay for my housing and also give me the approved GSA rate for per diem? Thank you!
Ask a Travel Nurse Answer:
I believe what you are talking about are two separate categories. There is a GSA rate for both per diem housing and meals and incidentals (M&IE). I am assuming that your company is saying that they will provide your housing for you, tax-free, and then also provide you with a reimbursement for the credit that would be allowed to you by the IRS, for the meals and incidentals per diem. If this is a correct assumption, then it is the same thing that every travel company does as part of their “tax advantage” programs.
If you did not have a “tax home”, that allowed you to participate in their tax advantage program, then they could still provide your housing, but it would be taxed. And obviously, you would not be offered any reimbursement for meals and incidentals.
If my assumption is wrong, or you have other questions, please feel free to email me back.