What if I spend the 3 nights each week at a friend’s home located near the hospital I work at. And then travel 2 hours back to my house ( tax home). Do i qualify for the tax free stipend?
There are 3 qualifications to qualify for tax free stipends. 1. Maintain tax home 2. Duplicate expenses 3. Distance You haven’t given me enough info. The only requirement I know you likely meet is the distance requirement. I do not know if you have a tax home and I do not know if you are paying fair market value to stay at your friend’s home.
OK, so you described my exact current scenario (100 miles away, but stay in a hotel 3 nights). How do I make this IRS compliant? Have the entire amount taxed? Is stipend taxed at the same rate as regular income? Thanks.
I am not a tax professional. I would go to GSA.gov and see what the daily maximum for stipends for your contract location. Multiple daily maximum by 3. You can receive that amount tax free. The rest should be claimed as income.
What if I spend the 3 nights each week at a friend’s home located near the hospital I work at. And then travel 2 hours back to my house ( tax home). Do i qualify for the tax free stipend?
There are 3 qualifications to qualify for tax free stipends. 1. Maintain tax home 2. Duplicate expenses 3. Distance
You haven’t given me enough info. The only requirement I know you likely meet is the distance requirement. I do not know if you have a tax home and I do not know if you are paying fair market value to stay at your friend’s home.
If I switch to local travel after a year in the same general area will I be compliant?
OK, so you described my exact current scenario (100 miles away, but stay in a hotel 3 nights). How do I make this IRS compliant? Have the entire amount taxed? Is stipend taxed at the same rate as regular income? Thanks.
I am not a tax professional. I would go to GSA.gov and see what the daily maximum for stipends for your contract location. Multiple daily maximum by 3. You can receive that amount tax free. The rest should be claimed as income.