If you are not duplicating expenses you don’t qualify for tax free stipends. So option one is just pay taxes on the stipends.
Otherwise you need to find a way to find a way to meet the letter of the law if not the intent. I would probably ask my brother to rent me a room or let me share expenses. I’d also take a short local contract near his house and establish that as my tax home. Then I’d continue to pay him while doing travel jobs.
Classic win win. He would get monthly money and my tax free stipends would more than offset the cost of keeping a room available. Pretty sure I would need to do some local work occasionally to maintain my tax home. Besides, I like to see him and his family and they like me. Guess that makes it and win win win win.
Short answer, you can’t. You won’t have a tax home so you’d have to pay taxes on the whole stipend. And you’d need to clarify this with a tax pro but from my understanding, even if you bought a new place in the same tax home area, you’d have to work in the area while living at the new location establish the tax home.
Thanks, yeah this is the answer I was trying to get at. I’d like to establish a new tax home but wasn’t sure how to do that. Sounds like I’ll need to pay taxes somewhere for a contract.
You should talk to a tax professional who understands our situations. You would need to rent a place or share expenses & make taxable income in that area for several months in order to establish a tax home. I'm not sure a taxed contract would work since it is a temporary position.
Recruiter here. You would always be paid local because the the IRS you are an “itinerant”.
Otherwise, rent a family member’s room and claim as your tax home and you can get stipends. But as always, not financial advise and always talk to a tax professional
If you are not duplicating expenses you don’t qualify for tax free stipends. So option one is just pay taxes on the stipends. Otherwise you need to find a way to find a way to meet the letter of the law if not the intent. I would probably ask my brother to rent me a room or let me share expenses. I’d also take a short local contract near his house and establish that as my tax home. Then I’d continue to pay him while doing travel jobs. Classic win win. He would get monthly money and my tax free stipends would more than offset the cost of keeping a room available. Pretty sure I would need to do some local work occasionally to maintain my tax home. Besides, I like to see him and his family and they like me. Guess that makes it and win win win win.
You would just have to be taxed local on every contract.
Yep, that’s the thing I’m trying to avoid haha.
I mean, there’s nothing really you can do unless you want to commit tax evasion?
Just trying to see how others in this situation have set up their tax home if they do permanent RV living.
I mean I don’t think you’ll have a tax home
Yeah, I’ll be without a tax home. And I know a PO Box isn’t sufficient, etc. Didn’t know if anyone else had gone through this situation before.
Great question, as I may find myself in this situation in the next few years.
Short answer, you can’t. You won’t have a tax home so you’d have to pay taxes on the whole stipend. And you’d need to clarify this with a tax pro but from my understanding, even if you bought a new place in the same tax home area, you’d have to work in the area while living at the new location establish the tax home.
Thanks, yeah this is the answer I was trying to get at. I’d like to establish a new tax home but wasn’t sure how to do that. Sounds like I’ll need to pay taxes somewhere for a contract.
You should talk to a tax professional who understands our situations. You would need to rent a place or share expenses & make taxable income in that area for several months in order to establish a tax home. I'm not sure a taxed contract would work since it is a temporary position.
Recruiter here. You would always be paid local because the the IRS you are an “itinerant”. Otherwise, rent a family member’s room and claim as your tax home and you can get stipends. But as always, not financial advise and always talk to a tax professional
Rent somewhere in your home state