Welcome to Health Care POV | sign in | join | help
in Search

Tax and Travel PT

Last post 04-07-2008, 5:46 PM by Harold Entz. 1 replies.
Previous Discussion Next Discussion Sort Posts:
  •  03-20-2008, 7:53 PM

    Tax and Travel PT

    I would like to know if anyone could give some advice as to which situation would provide the best bottomline pay.   I would like to do travel PT and some of the companys offer a per diem pay package and other offer a straight hourly pay.  I own a home.  A tax prep site for this would also be helpful.
  •  04-07-2008, 5:46 PM

    • Harold Entz is not online. Last active: 05-17-2008, 9:32 PM Harold Entz
    • Joined on 04-07-2008
    • Division Manager
    • Supplemental Health Care
    • Houston, TX
    • 1 Posts

    Re: Tax and Travel PT

    Joan,

     Great question! I would strongly suggest that you seek the advice of a tax professional on this matter. There are indeed many options available for traveling therapists. However, I must caution you that you should be very wary of companies that offer huge per diems and big housing allowances. While it is very enticing and lucrative for the therapist, it exposes the traveler to potential IRS penalties.

     I spoke with an IRS agent specifically about this topic. They have clearly defined guidelines regarding amounts you can receive. For instance, a company may offer you a $2,000/mo housing allowance. But, the area in which you are doing an assignment has "reasonable and customary" housing costs for much less. If you are audited, you are going to pay penalty and interest - at a minimum.

     Just make sure that you get a professional's advice before accepting any pie in the sky reimbursement plan!

    Bon Voyage!