Post # 1
If I receive a travel stipend up front from my employer, does this count as taxable income? Do I need to report it to the IRS with my other income? My employer is giving me the travel money up front to cover my costs of being abroad for the next few months. I don’t have to turn in receipts or anything. It just has to be used for housing and food while abroad. The money is given to me on a credit card, but my employer recommended withdrawing it all from the card and putting it in my personal bank account. So I’m worried this will need to be reported to the IRS to be taxed and I’m wondering how much will be taken out for taxes.
Post # 3
@MissLilikoi: I’m sorry I’m not an accountant and cannot give you any sound advice but will say that I incurred hotel and food expenses while traveling for my employer and when they reimbursed me it wasnt taxable income, it showed up in separate area on my paystub. I think it’s a little odd that they are urging you to deposit to your own account rather than use their card.
Post # 4
I’m an MBA Public Accountancy Student and will be testing for my CPA next year. This is a travel advance, and as such is not taxable income. The cost is incurred by the employer in the cost of doing business. Your employer will be able to deduct the cost of business travel on the corporate return.