Ask a Travel Nurse Question:
I am currently on contract in California for three more months and chose to take my own housing. My permanent residence in Illinois is listed with my company, where I have numerous things registered to that address (car, voter’s registration, etc.) and also have many belongings there including two cats. Since my mom usually handles my finances (I can save lives but am terrible with tax numbers) I do not pay rent. My mom and her tax consultant believe that my housing should be taxed and think I’m technically a transient. My understanding from the company is that I am not and I should get my California housing stipend tax free. In your opinion, should my housing stipend be taxed? Thanks so much!
My mom and her tax consultant believe that my housing should be taxed and think I’m technically a transient. My understanding from the company is that I am not and I should get my California housing stipend tax free. In your opinion, should my housing stipend be taxed? Thanks so much!
Ask a Travel Nurse Answer:
This question would be much better suited for the people over at TravelTax.com.
Joseph Smith, who was once a traveling healthcare professional, is an enrolled agent with the IRS and while I can answer many questions regarding taxes and the traveling healthcare professional, when it comes to specific cases, the people at TravelTax.com would be best to advise you.
You can always email then a question through their site, but understandably, you may currently have a bit of a delay in their response due to it being “tax time.”
Just from what you have stated, although many others in your situation would certainly claim they were eligible to take the stipend tax free, I believe your mom and tax consultant may be correct in their assessment of your situation.
The tax exempt status comes from the assumption that you are duplicating living expenses due to working away from the area in which you normally do business. Without paying rent, in the eyes of the IRS, it could be argued that you are not really duplicating your living expenses while out on the road.
But again, run it by the people over at TravelTax.com and see what they think.