Reply With QuoteYes, I would stay away from them- going from making $35/hr to only $15/hr and claiming a TON of deductions is an audit waiting to happen.
Ok, so tell me what you guys know about the Tax Advantage Programs that are being offered these days? I'm just not too sure about it---seems like an audit waiting to happen!
Yes, I would stay away from them- going from making $35/hr to only $15/hr and claiming a TON of deductions is an audit waiting to happen.
Amanda, RN, BSN
Ex-Traveler Extraordinaire,
Resident Trauma Queen
Re: Tax advantage programs?
Go to TravelTax.com and read up on "Tax Advantage" and you will get a clear understanding.
CJ www.TravelNurseToolbox.com :cool-nurse:
They may make you more likely to be audited, but if you follow the rules an audit means nothing. gsa.gov has the rates the irs allows for per diem money, and if you have a good acountant you can learn whether or not you qualify for tax advantage money by talking to them about your situation. not all travelers will qualify for the money, but many take it becasue its "tax free." if you don't qualify, then demand an equal hourly rate, so that your take home is the same. agencies push you to take the tax advantage money, because they pay less social security, workers comp, overtime, etc.
Less travelers than you think qualify for the tax free money. In order to qualify, you need to own or rent a home in your home state, visit that home for more than just a few weeks a year, and actively conduct business regularly in your home state (banking, working, etc.). Using a friend or family member's address will not cut it, even though a LOT of travelers I've met do this.
I do not qualify, so I just make sure that companies quote me pay rates that reflect a regular hourly rate, and not ones that are separated into "taxable & tax free."
As Amber mentioned, most travelers hear "tax free" and take it. But many don't understand that if they are audited, and they do not meet all of the IRS requirements for a tax home, they are setting themselves up for some big problems.
Amanda, RN, BSN
Ex-Traveler Extraordinaire,
Resident Trauma Queen
Amanda sums it up pretty nicely. You do need to own a "tax home" in your home state. Otherwise, assuming the company you work for is on the up and up, it is a great system. I have done this tax advantage for over four years. It pays well and is perfectly legal, but I appreciate your skepticism. At first I was the same.
thanks so much guys!
yeah, ends up i don't qualify, so oh well anyway. thanks again for the info!
Don't let that discourage you, there are down sides to getting the tax advantage money. 1. you pay less into social security, so if you ever need it, you colect less of it. 2. overtime pay and holiday pay for people taking tax advantage money is almost always paid on your base pay rate, so if your base pay is 8 bucks an hour, overtime is only 12. 3. if you have to apply for credit somewhere all you can calim as your earned income is your base pay, so it makes you look like a higher credit risk.
Maybe its a blessing is disquise that you don't qualify.
I work for a co that has tax advantage. I love it and yes I do follow the rules and talk regularly with my account. I own a home and work in another state more than 175 miles away. Follow the govt is important no matter how you get paid.
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