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Tax Free Travel Stipend, How Do I Calculate Take Home Pay? |
My quiet is startinga job where he will make $36,000/year and will received $600 a month on top of that tax-outspoken for work-related travel. I tried figuring out his take home pay by deducting the $600 from his outrageous pay and exempting it from taxes, but I come out with LESS money than he makes
| Answer: The travel subvention is NOT tax free. You need to read irs pub 463, accountable plans. If he gets $600 a month without turning in receipts, it's a non-responsible plan and the money is fully taxable as income. While he can save the receipts and try to seek them as a unreimbursed |
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