Tax Advantage Program

Tax Advantage Program


As a medical professional who travels – or like the movie star or NFL player - you earn your wages working away from your home. You have a tax home (where your family might live, where you have legal ties, a bank account, and where you obtained your current driver's license) and you also have a "home" (or apartment or long-term lease) where you live while you work and earn a living. With two homes to maintain, you have duplicate expenses such as meals, housing and incidentals.


The truth is, a whole lot of people earn their wages in places where they don't live. The IRS recognizes this, so they created a table of rates that estimates the average food and housing costs for each U.S. city. These rates are called “per diem” rates, are different for each city you may travel to, and are non-taxable. Our tax laws allow eligible medical professionals who travel to receive these tax-free reimbursements.


Qualifying for a Tax Advantage Program results in MORE MONEY in your paycheck each week – in many cases up to 15% or hundreds of dollars more each week!


The Rules

There are some initial rules that need to be followed in order to qualify for the Tax Advantage Program. Some of them are:

  1. You must have a tax home. Generally, your tax home is where you normally reside and pay taxes. If you constantly travel and have no permanent residence, you might not qualify for this program.
  2. Your tax home must be different from your travel assignment location. If you are working in the general proximity of your tax home and return home nightly from your shift, you would not qualify for the program.
  3. Your assignment must be less than one year. You may have multiple travel assignments and extensions of assignments, but each original assignment must be less than a year.
  4. All tax questions should be directed to your personal tax advisor. The ideal tax advisor would be a licensed professional who has experience working with those who take temporary work assignments away from their homes.

To learn ALL the qualifying details of the Tax Advantage Program, please consult a licensed Tax Consultant, or visit the IRS at http://www.irs.gov/pub/irs-pdf/p463.pdf.