I'm a travel nurse, and I have a question about "per diem"?

Hello! My name is Robin. I've been a nurse for over 10 years, and 3 weeks ago, I started my dream job of being a travel nurse. I have a question about my check. Hope someone can help.

Since my job requires that I move from city to city every 3 months or so, they pay me for travel, they give me a free apartment with utilities paid, and I get a good salary.

I've received 2 paychecks so far, and I've realized that I'm not paying around 25% of my gross towards taxes and ss security like I'm used. They are paying me $18/hr for which I'm taxed for and then they are paying me a large amount called "per diem" which doesn't seem to be taxed. The per diem seems to add up to about $10/hr and lists the per diem for meals and incidentals. My questions are these:

Am I going to be in trouble later with the IRS is I'm not keeping receipts for meals and incidentals?

Am I going to owe money to IRS at the end of year?

Can I still file 1040EZ like I'm used to doing?

Thanks,
Robi

Not true about being in trouble withthe IRS.... All of your temporary living expenses are a write off..... If your employer is paying your rent and adding that cost to your wage statement, then they need to be providing you with a receipt..... Per Diem, is not taxable...... When you get your W2, the per diem is not included in your taxable wage statement.. If your still uncomfortable with it, contact your tax person and they can explain it to you..... Over the last 8 years, every job I've been on has paid per diem, travel and monthly return home expenses and I have not had a single tax on it.....

Everything that you are being paid is considered as income..even your apartment and utilities. I would say that unless you make some serious changes to your W-4, you will be in trouble come tax time.

I can answer parts of your question. My husband is a truck driver (over the road) & he is able to expense off a daily per diem for meals & incidentals. His company does not pay him this so he claims it at the end of the year as an expense. This is not taxable- so since you are receiving up front, you won't owe tax on it. Since he doesn't receive up front, he is able to deduct it off his total income. The amount of $10.00 per hour however seems excessive. Truck drivers are only allowed around $40.00 per day. However, they may be paying you milage- which is also deductable if you are using your own vehicle. I would call your human resources dept. to clairify & not go by Yahoo Answers just to be certain though.
Good luck with your job!

When you say that they pay you to travel, do you mean that they reimburse you for your travel expenses?

The part about "free apartment with utilities paid" is also a concern. If they reimburse you for your apartment and utilities, that's one thing. But, if they "give you" a free apartment and utilities, that's going to be taxable. (Nothing is free...)

This is not a very straightforward answer but, here goes. (And for your last two questions, it depends.)

You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses.

However, documentary evidence is not needed if any of the following conditions apply.
1. You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan and you use a per diem allowance method that includes meals and/or lodging.
2. Your expense, other than lodging, is less than $75.
3. You have a transportation expense for which a receipt is not readily available.

Employees who give their records and documentation to their employers and are reimbursed for their expenses generally do not have to keep copies of this information. However, you may have to prove your expenses if any of the following conditions apply.
1. You claim deductions for expenses that are more than reimbursements.
2. Your expenses are reimbursed under a nonaccountable plan.
3. Your employer does not use adequate accounting procedures to verify expense accounts.
4. You are related to your employer, as defined later under Related to employer.

Recommend that you review the source below for details.

If you gave up your old home, you have a problem. In order to deduct the cost of your travel expenses, you have to actually be away from your tax home and be paying DUPLICATED expenses. Then if you fully account to your employer for the duplicated expenses, they don't have to include the housing in your paycheck.

Per Diem for FOOD is based, again, on your being out of town.