Ask a Travel Nurse: Should my housing stipend be taxed?

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Ask a Travel Nurse: Should my housing stipend be taxed?

Ask a Travel Nurse Question:

I am currently on contract in California for three more months and chose to take my own housing. My permanent residence in Illinois is listed with my company, where I have numerous things registered to that address (car, voter’s registration, etc.) and also have many belongings there including two cats. Since my mom usually handles my finances (I can save lives but am terrible with tax numbers) I do not pay rent. My mom and her tax consultant believe that my housing should be taxed and think I’m technically a transient. My understanding from the company is that I am not and I should get my California housing stipend tax free. In your opinion, should my housing stipend be taxed? Thanks so much!

My mom and her tax consultant believe that my housing should be taxed and think I’m technically a transient. My understanding from the company is that I am not and I should get my California housing stipend tax free. In your opinion, should my housing stipend be taxed? Thanks so much!

Ask a Travel Nurse Answer:

This question would be much better suited for the people over at TravelTax.com.

Joseph Smith, who was once a traveling healthcare professional, is an enrolled agent with the IRS and while I can answer many questions regarding taxes and the traveling healthcare professional, when it comes to specific cases, the people at TravelTax.com would be best to advise you.

You can always email then a question through their site, but understandably, you may currently have a bit of a delay in their response due to it being “tax time.”

Just from what you have stated, although many others in your situation would certainly claim they were eligible to take the stipend tax free, I believe your mom and tax consultant may be correct in their assessment of your situation. 

The tax exempt status comes from the assumption that you are duplicating living expenses due to working away from the area in which you normally do business. Without paying rent, in the eyes of the IRS, it could be argued that you are not really duplicating your living expenses while out on the road.  

But again, run it by the people over at TravelTax.com and see what they think.

David

david@travelnursesbible.com

Medicaid Expansion One Step Closer To Reality In Montana

Montana appears poised to become the 29th state, plus the District of Columbia, to expand Medicaid under the Affordable Care Act.

A Republican-sponsored bill to do so survived a crucial vote Thursday and is now expected to move quickly to the Democratic governor’s desk for his signature.

Hard-line conservatives made multiple attempts to amend or kill the bill when it hit the Republican-controlled House floor Thursday, but a coalition of 13 Republicans and all 41 Democrats agreed to end debate swiftly and vote. The bill picked up two more Republican supporters in the House than it had on Wednesday.

The bill previously passed the state Senate with seven Republican votes. It faces one more vote Friday, but opponents now appear outnumbered. Gov. Steve Bullock is expected to sign it.

If that happens, Montana’s Medicaid expansion plan will still need approval from the federal Department of Health and Human Services. Its provisions requiring recipients to pay premiums and participate in “workforce development” programs will require federal waivers.

This story is part of a reporting partnership that includes Montana Public Radio, NPR and Kaiser Health News.

Kaiser Health News (KHN) is a national health policy news service. It is an editorially independent program of the Henry J. Kaiser Family Foundation.

Federal Marketplace More Adept Than States At Enrolling Customers, Study Finds

Despite its rocky launch, the federal health insurance exchange did better than the exchanges run by individual states at both enrolling new people in Obamacare and hanging onto previous enrollees during the 2015 open enrollment period that ended in February, according to a recent analysis.

Enrollment for 2015 on the federal exchange increased by 61 percent over 2014, to 8.8 million. On the state-based exchanges, enrollment increased 12 percent, to 2.8 million, according to the analysis by the consulting firm Avalere Health.  In addition, the federal exchange re-enrolled 78 percent of its enrollees from the previous year, while the state-based exchanges re-enrolled 69 percent.

Several factors may have contributed to the disparities in enrollment and retention, says Elizabeth Carpenter, a director in the health reform practice at Avalere, which conducted the analysis based on federal enrollment data released in March for the federal and state-based exchanges.

The many website and other glitches that bedeviled the 2014 launch of healthcare.gov, the federal portal for Obamacare coverage in about three dozen states, may have contributed to its stronger enrollment showing this year, Carpenter says.

“Some folks have pointed to the technological problems with healthcare.gov, saying that there may have been people who didn’t get through the enrollment process last year” because they couldn’t get the website to work, Carpenter says. In 2015, instead of error messages and frozen screens, healthcare.gov functioned smoothly for the most part, even during periods of heavy use.

It may also be that the federal exchange covers more states that have a larger proportion of lower income people, Carpenter says. More than 85 percent of people who bought health insurance on the state and federal marketplaces were eligible for premium tax credits that were available to people with incomes up to 400 percent of the federal poverty level ($46,680 for an individual).

As for retention differences, it’s possible that more people over-reported their income on state-based exchanges for 2014 coverage and were subsequently shifted to the Medicaid program this year. Twenty-eight states have expanded Medicaid to adults with incomes up to 138 percent of the federal poverty level (about $16,100). In those states, if someone applies for a marketplace plan, the exchange will move them into Medicaid if their income falls below that threshold.

Such shifting could make it appear that some states had lost enrollees when instead they just moved to Medicaid. Avalere didn’t incorporate Medicaid eligibility shifts into its analysis.

But it’s not clear why state-based exchanges would experience such shifts to a greater degree than states where the exchange is run by the federal government.

The takeaway? “The numbers underscore that significant growth year over year is not necessarily a given,” Carpenter says. “The question for all exchanges is how to continue to grow over time and attract healthier enrollees.”

Please contact Kaiser Health News to send comments or ideas for future topics for the Insuring Your Health column.

Kaiser Health News (KHN) is a national health policy news service. It is an editorially independent program of the Henry J. Kaiser Family Foundation.