The following are some frequently-asked questions about the Tax Advantage Program.
Q. Will
the tax free
money hurt
me with the
IRS at the
end of the
year?
A. No.
The money
you are
receiving
through the
program is
money that
you would
normally
claim as a
traveler
when you
would do
your taxes
in April. We
are paying
it to you
now.
Q. Can I
write off
any expenses
related to
my travel?
A. Yes.
You can
write off
your housing
expenses,
travel
expenses,
meals and
all other
expenses you’ve
incurred on
your
assignment
–
including
incidentals
such as
shampoo,
razors,
toothpaste,
etc., for
the amount
the IRS has
established
for the
location you
are
traveling
to.
Q. Do I
need to save
receipts to
submit at
the end of
the year for
the Tax
Advantage
Program?
Will I have
to show
proof of how
I used the
money?
A. Yes.
As always,
it is
recommended
you save
your
receipts for
anything you
will claim
on your
taxes.
Q. Will I
be held
accountable
for the tax
free money
(or per diem
rate) if I
get audited?
A. You
will be
responsible
for the
amounts you
spend over
the allotted
amount for
the location
you are
traveling to
for your
assignment.
Q. What
will show up
on my W2?
A. Only
your taxable
wages will
show. Your
per diem
money is
money that
you are
entitled to
since you
are
traveling at
least 50
miles from
home. Most
nurses like
this because
they can
still get
federal
funding for
their
children’s
education.
Q. How
does the
housing
work?
A.
Advantage RN
can assist
with
locating and
providing
you housing
and if
necessary,
we can also
provide the
funds for
establishing
the living
arrangements
for your
Advantage RN
assignment.
Since you
will be
receiving
the fully
allotted
government
regulated
per diem
allowance,
Advantage RN
can spread
deductions
for the cost
of housing
we establish
for you
across the
duration of
your
assignment.
Q. Can
you provide
me with a
travel
stipend
because I
need travel
money
upfront?
A. A
travel
allowance is
in your per
diem rate.
If needed,
Advantage RN
can assist
you with
travel
monies to
get you to
your
assignment.
The advance
will then be
subtracted
from your
per diem
rate.
Q. Why
don’t I
get time and
a half over
40 hours?
A. All
of our
assignments
pay time and
a half of
the BASE rate
after 40
hours.
Q. Why do
I get paid
my base rate
for hours
36-40?
A. Not
all
hospitals
guarantee
each nurse
the same
number of
hours each
week, but
all of our
hospitals
guarantee a
nurse 36
hours per
week. In
order to
MAXIMIZE the
per diem
allowance
for each
nurse, we
average the
allowance
into the
first 36
hours you
work so you
are
guaranteed
ALL of your
tax free
money. This
way you are
only taxed
on 40 hours
of the low
base rate.
Q. Why is
my per diem
not spread
over 48
hours if I
am on a
48-hour
guarantee?
A. The
per diem is
spread over
40 hours
worked. We
cannot pay
overtime on
tax free
money.
Q. Why do
other
agencies not
offer the
Tax
Advantage
Program?
A. Other
agencies do,
but not
always in
the same way
we do. Some
offer
stipends of
$1,000 for
housing or
tax free
travel
money. But
what they do
not utilize
is the
maximum
allowance
that the IRS
has
established
that you are
entitled to.
In essence,
in those
locations
where you
are allotted
$2-3,000 tax
free in
housing a
month by the
IRS, the
other agency
is only
giving you
$1,000. We
take the
allotments
provided by
the IRS,
average them
into your
pay rate,
and allow
you to bring
it all home
each week
– tax
free.
Q. Are
there any
bad things
about this
Program?
A.
Overall, no.
The only
disadvantage
we have
found is
that your
contributions
to Social
Security and
Medicare are
made only
from your
base
(taxable)
amount. You
need to take
this into
consideration
if you are
going to
travel for
an extended
period of
time using
the Tax
Advantage
Program.
Q. Other
companies
offering the
Tax
Advantage
Program pay
for my
housing. Why
don’t you?
A. This
depends on
the Tax
Advantage
amounts they
are
offering. It
may be a
percentage
of the per
diem
allowance
that other
companies
are offering
you – like
only the
meals and
incidental
or tax free
travel money
– which is
why they are
still able
to offer to
pay for your
housing.
Q. Why
isn’t my
take home
pay listed
on my
contract?
A. Your
take home
amount is an
estimate
based on a
single
person
claiming
Zero on
his/her W4.
In this
situation
about 30% of
your income
would come
out of your
paycheck and
go to taxes.
The take
home (or
net) is also
estimated
prior to any
deductions
you many
elect such
as medical,
dental,
vision or
401 (k).
Q. How
does the IRS
come up with
the amount
of money
that is tax
free?
A. This
amount is
determined
based on
census and
cost of
living
figures for
the area.
Q. How
long can I
stay in one
place under
the Tax
Advantage
Program?
A.
Certain
states may
have strict
guidelines,
but the IRS
defines any
assignment
beyond 12
months as
permanent.
The 12-month
period is
based on a
specific
locale BUT
this
principal
can be
applied to
situations
where the
traveler
works in one
place for
nine months,
returns home
or takes
another
assignment
for three
months, then
returns to
work at the
original
place for
another
three
months.
Within a 15
month
period, the
traveler
spent 12
months in
that one
place. Some
tax court
opinions
have cited
an
"ongoing
relationship"
with an
employer in
one area as
substantiating
a residence.
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