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Why is it called Tax Free money and is it really tax free? |
When a traveling Nurse is Offered a tax free house or tax free car rental allowance when he/she takes an 8 weeks assignment....is this really tax free as he/she is told......or do they end up paying for it in the long ran...........thanks Such items are considered a de minimus fringe when they are provided by the employer in order to have people at the job and on call, etc. Sort of like when ranchers provide houses for ranch employees; a de minimus fringe is not taxable income since it is something that is done for the convenience of the employer. It is one of the rare instances of when you can have your cake and eat it, too. Apparently the organization that is making these offers simply don't plan on reporting these benefits as income. There are some clever ways of doing that but you had better make sure that theirs is legal. |
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