I'm ready to go on my first assignment and have decided on a company (The Right Solution). The recruiter was explaining the tax issues to me and I have also read about them on-line and in a book, but wondered if anyone has further "words of wisdom".
It seems wierd that the company pays for your housing up front, then you pay them back with "tax-free" money.
Any advice?
Thanks
Chris
:confused:
i've never payed them back for housing
i pay the feds because i don't own a home so that housing money i take is taxed
they only time i have ever payed back the agency is when i am sick and have to call in
usually its around double what they pay you hourly for your housing stipend
example they pay you $5 dollars and hour for housing, you call in you pay them $10 for every hour you didn't work on your assigned shift
thats new to me though
you paying them back for housing???
they way it is broken down for me is because i don't own a home i have to pay the feds around 5 g's a year. if i owned a home i would pay nothing because from what i understand the fed. gov figures most home owners put in at LEAST 5 grand a year into there home if not more
so when you sign a contract and you decide to take the housing stipend, say $2000 a month
you will be taxed on that, probably around 1/3 goes back to the fed. gov.
at least thats how it works out for me
i always take the housing stipend and find a cheap place to live, more money in my pocket : )
