Taxes for Workampers

[JoanE]

For those of you who are workamping, where are you getting your tax information specific to your situation? For instance, deducting the mileage to get from one workamping job to another? Filing state tax returns? I noticed that Workamper.com is selling seminars and books on this subject. Have any of you attended or purchased? I have done accounting for many years but not tax returns (except for my own) but having a specific resource for RVers could be very useful.

[Bethers]

I highly recommend that you find an acct you feel comfortable with and use that person. You will not be able to deduct your mileage to the jobs - although I know some people who do. If they get audited, well, it will only make them look harder at the rest of their taxes. I highly recommend you use your own tax people. I'm still using my accountant in WI that handled my businesses up there. There's no such thing as "specific" to rvers as even 2 workampers aren't doing the same thing. We are simply working in more than one state. Did that before I rv'd, doing it now while rving.

[OregonLuvr]

I have my taxes done by TravelTax.com, he is in Nebraska. I do it all by mail and fax. He does the majority of the travel nurses I know. He has a website that answers all kinds of questions re: temporary work. I work contract employment and actually if you have a temporary job with a start and end date you can deduct your non reimbursed mileage if you have a permanent tax home. Beth is an "itinerant" so she cannot deduct it as she has no "home" so to speak.

Everyone's circumstances are different but he explains things in pretty easy English on his website, even has a tax worksheet you can download to keep track of things. Would have to disregard alot of it as it pertains to contract nurses, but alot of it applies to anyone doing contract work.

hope this helps

karen

[Bethers]

Most, but not all, workamping jobs aren't considered "contract" work quite like your nursing assignments are. Rarely do we have contracts. Although I did once. And you are very right, Karen, there are times when traveling can be reimbursed, just not mine hahaha.

[JoanE]

Beth, if you move to take a new job, you can deduct certain expenses in connection with your move. There are parameters which you can find in the IRS bulletins. Since you live where your RV is parked, you are moving when you take a new job. I think you might qualify. I'm not a CPA so check with your own professional tax preparer.

[Bethers]

From the IRS:

"To qualify for the moving expense deduction, you must satisfy two tests. Under the first test, the "distance test", your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home.

The second test is the "time test". If you are an employee, you must work full-time for at least 39 weeks during the first 12 months immediately following your arrival in the general area of your new job location. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months immediately following your arrival in the general area of your new work location. There are exceptions to the time test in case of death, disability and involuntary separation, among other things. "

I cannot meet these tests. The IRS does not believe in moving around like we rver's do. And I'm not going to test it.

[OregonLuvr]

Heck what do I know. Guess I thought all Workcamping jobs had contracts LOL How bout your Amazon job Beth. Does that have a start and end date?? Not that you would qualify as you have no tax home but I was just curious.

The IRS is very vague in some areas and can be challenged either way, just not a challenge I want to meet either.

karen

[Bethers]

Heck what do I know. Guess I thought all Workcamping jobs had contracts LOL How bout your Amazon job Beth. Does that have a start and end date?? Not that you would qualify as you have no tax home but I was just curious.

The IRS is very vague in some areas and can be challenged either way, just not a challenge I want to meet either.

karen

Kind of. I have a start date and a "general" end date. Until the last week, we won't know the exact end date for each shift. And some people will actually (if like last year) be invited to stay on for longer. Many wk jobs have informal contracts. Very few have formal ones.

You are very right about the IRS and vague rules. When they do an audit, those vague rules become not vague in their favor ... hahaha. That's our IRS. My acct and I talked a long time about what I should or should not claim. Mileage was a definite not at the end of the discussion. Others can decide differently. But reading that time rule - the only time I could possibly consider it, would be if I was taking a job for a lot longer term than the average workamping job. And some wk jobs will pay you something towards your travel expenses.

[JoanE]

Beth, thanks for getting the actual wording from the IRS. Of course, if any of us have a "small business" there may be additional deductions we can take. Detailed records and receipts are very important in case of an audit. I've been thru one many years ago and it was miserable but that was before our "new and kinder" IRS. Ha!

So I'm guessing that none of us have attended the tax seminar provided by Workamper.com?

[bikerchic777]

I worked on a contract last summer, but as a sub-contractor. I could deduct mileage for my job since I was self employed and had to drive for my work. I asked my tax lady if I could claim travel expenses to go out to AZ for my winter workamping job. Mind you, my tax lady used to work for the IRS! The answer was N O. Since I claim SD as my residence, I didn't move. I didn't know what to expect as being self-employed. I ended up getting my tax lady to file for and extension for me so I could get back to IA to see her and figure out what I was in for. I'm finally getting ready to pay my self-employment taxes for last year. If I work again as a contractor or sub-contractor, I will make payments to the IRS throughout the season to avoid the end of the year shock. One nice thing was that my current workamping bosses gave me some money for gas to get here and I didn't even ask for it

[JudyJB]

All of you who are workcamping as self-employed "1099" employees, be aware that as Bethers mentioned, you DO have to pay estimated income taxes four times a year. (There is a form on www.irs.gov to do this.)

If you underestimate and wait until they are due in April, you might get walloped not only with a big tax bill but a penalty as well!

I had a penalty a couple of years ago when I worked several self-employed bits and pieces of jobs throughout the year, and it totaled up to a lot more taxes than I expected. I had not estimated anything, thinking the amount was going to be small. Both fed and state of Michigan penalized me--money wasted because I was too lazy to estimate.

When I worked almost entirely as a self-employed person several years ago, I did a much better job of estimating. My situation in the last 2-3 years is complicated because I work one regular job and one part-time job, and was doing some freelance work in my "spare" time. Nice to make lots of money, but not nice to have a penalty. Just got lazy recently, but have learned my lesson! Also, not doing any more freelancing right now, so problem is solved at least for me.

[Bethers]

Most years I pay estimated to the IRS. This year my acct told me not to - as between this summer job and the Amazon job, he thinks I'll be ahead of the taxes - but I'll probably end up paying something. It's a catch-22 - paying some 4 times a year or more once - but like said, if there's a chance it'll be too much, you can even end up paying a penalty. Another reason I have an acct. Mine told me that I couldn't have a penalty this year because we are estimating based on past years - not expecting differences - and I simply won't be getting a refund this time. I do so hate to have the govt holding my money.

[JoanE]

I do so hate to have the govt holding my money.

Amen to that! I've never understood people who are happy they are getting a "big refund". That just means you loaned your money to the government for FREE! It means you had too much withheld from your paycheck.

[bigmamma6868]

You ladies have brought up some things for me to think about. I will visit with my accountant before I leave town to see what I should be doing. I am not sure if I will be taking on paying jobs or just for my spot for my RV to park. I will see what he advises of me. Thanks for all the comments. Look forward to seeing you out on the road somewhere. Jacque