Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
sweetrvr
Level 2

Travel nurse contract striped was taxed? Does this come back?

RE: Travel nurse housing stipend

 

Normally with travel nurse contracts, there is an hourly wage (taxed) and a living stipend (untaxed). I recently took a contract where the stipend was in fact taxed. My question is if I  will get this money back , and how to I accomplish this when I file? Thanks!

6 Replies
Opus 17
Level 15

Travel nurse contract striped was taxed? Does this come back?

Are you a W-2 employee of the agency?  Then no.  Travel stipends are taxed and travel expenses are not deductible, that's part of the 2017 tax reform law.

 

If you are self-employed and will report your income and expenses on schedule C, then your travel expenses may be deductible, depending on several factors (mainly, how long was the assignment, and whether or not you have a "tax home" that is different from where you were working).  See IRS publication 463, chapter 1. https://www.irs.gov/forms-pubs/about-publication-463

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
sweetrvr
Level 2

Travel nurse contract striped was taxed? Does this come back?

Thanks for the reply.

 

Yes this is a W2 situation.  So that's a bummer.

 

So just out of curiosity,  why do most contracts have tax free stipends?  I'm considering taking another contract that is tax free (stipend), so I would have to pay this money back?

Opus 17
Level 15

Travel nurse contract striped was taxed? Does this come back?

@sweetrvr 

Tax free stipends aren’t allowed by the tax reform law of 2017.  Some employers may not be following the law, I couldn’t say why.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
sweetrvr
Level 2

Travel nurse contract striped was taxed? Does this come back?

Wow that's good to know. Tax free stipends are the norm in travel nurse contacts,  I can't believe the majority of the agencies are breaking the law! This might be worth another thread entirely. 

Critter-3
Level 15

Travel nurse contract striped was taxed? Does this come back?

If the employer pays for your living expenses directly then you would not get the money so it would not be taxable on your return OR  if they reimburse you for your exact expenses on an accountable plan then again it would not be taxable.   

 

But if  the contract is written that you get $X in wages  PLUS  more as a stipend where you do not need to account for what it was spent on then under the new law it is considered to be taxable just like wages  and should be included on the W-2 form and have taxes withheld.

Opus 17
Level 15

Travel nurse contract striped was taxed? Does this come back?

Reimbursement is tricky.  The employer can reimburse travel expenses tax-free under an accountable plan, but only for "temporary" work-related travel away from your "tax home."  So you must have a tax home and the contract must be temporary within the meaning of the regulation.  This is also described in IRS publication 463.  The employer can pay the travel expenses as an advance, but must reconcile them in a timely manner by collecting receipts and other proof, and obtaining repayment if the actual expenses are less than the advance. 

 

The employer paying living expenses directly is even trickier.  Normally, everything of value provided to an employee for their services must be considered part of their taxable income, and that includes free lodging or room and board.  The only time an employer can provide room and board that is not taxable is if it is a necessary condition of employment and it is on-site for the job.  For example, if you are a live-in nurse for an elderly person and you get free room and board in addition to a salary, the room and board is not included in your wages because living on site is a condition of performing the job. However, if you work in a hospital, and the employer pays for a nearby apartment, that must be included in your wages.  

 

"If the employer pays for your living expenses directly then you would not get the money so it would not be taxable on your return"

Employer paid housing is still taxable and must be included in taxable W-2 wages and subject to withholding unless it is on the employer's premises and accepting the housing is a condition of employment--even if it is not paid to the employee.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Dynamic AdsDynamic Ads
Privacy Settings
v