Taxes for travelers

Just starting out as a traveler? Traveling questions or experiences to share? Here's the place.
JoshSigs
Posts: 1
Joined: Thu Aug 12, 2010 12:13 am

Taxes for travelers

Unread post by JoshSigs » Fri Nov 26, 2010 9:17 am

Hey I was just wondering about taxation for travelers. I am a travel PT and receiving all these stipend benefits that are non-taxed, is there some type of big payout that I am gonna have to do during tax season? Do travelers pay-out in tax season or do we get money?

KtVi
Posts: 9
Joined: Fri Nov 13, 2009 7:59 pm
Location: USA

Re: Taxes for travelers

Unread post by KtVi » Fri Dec 03, 2010 10:38 pm

"Hey I was just wondering about taxation for travelers. I am a travel PT and receiving all these stipend benefits that are non-taxed, is there some type of big payout that I am gonna have to do during tax season? Do travelers pay-out in tax season or do we get money?"

Another good question! The tax benefits that traveling health care professionals receive is an intricate topic with many complications and individual variations. Without knowing your personal situation, one would have no idea if you will have any money to pay back or if you will receive a refund after you have filed. I would urge you to consult a tax professional to consult with regarding this topic - if you do not have one, please contact us for a referral.

One of the main benefits of traveling PT is the tax free housing stipend and per diem stipend, which are both provided from the Federal Government under the assumption that we are helping out an area in need of therapy services. This assumes that we are maintaining a household at "home" which is your "tax home." There are lots of black, white, and gray areas of these benefits and laws, and each person has a different situation. Please consult a tax professional each year to assess your personal situation.
Kate L. Violette, PT, DPT, OCS, CSCS

traveltax
Posts: 5
Joined: Tue Jan 04, 2011 9:11 pm
Contact:

Re: Taxes for travelers

Unread post by traveltax » Tue Jan 04, 2011 9:49 pm

JoshSigs wrote:
> Hey I was just wondering about taxation for travelers. I am a travel PT and
> receiving all these stipend benefits that are non-taxed, is there some type
> of big payout that I am gonna have to do during tax season? Do travelers
> pay-out in tax season or do we get money?

As KtVi mentioned, there is a more involved than just the tax-free amounts. The tax-free amounts are simply reimbursements for lodging, meals, and travel. Assuming that you have a tax home - which is different from a permanent residence - none of the reimbursements are taxable. However if you are not maintaining a tax home, then all the reimbursements should be treated as taxable wages by your agency (or yourself if you are self-employed). This is why you have to fill out the tax home affidavit with each contract. Feel free to look at our website for a wealth of information concerning this. As a former traveler myself, I know how complex this issue can become.
Joseph Smith EA
Enrolled Agent, Admitted to Practice Before the IRS
TravelTax LLC
www.traveltax.com
jsmith@traveltax.com

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