Tax Advantage FAQ
A tax advantage program is a term that refers to a variety of programs depending on the company. Tax advantage or tax-free are industry terms used to identify these programs, they are not legal terms.
What does tax advantage program mean?
A tax advantage program refers to a reimbursement for meals, lodging, transportation and other items to the traveler. This reimbursement is typically in the form of untaxed money, in addition to the regular taxed wages. The concept of tax Advantage programs are based on the duplication of living expenses when away from home. Because you are required to maintain an assignment home for your job and you have similar expenses in maintaining an assignment home, as well as your tax home, the Internal Revenue Service (IRS) allows a reimbursement of taxes. This is typically provided to you in the form of tax free money, in addition to your regular, taxed wages.
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