Originally Posted by
air101
No, they do it a pay period or two after the travel has been completed. So, they will add 3,080 to your check, tax it, then deduct the 3,080. So you're left with being taxed as if you earned an additional 3,080.
Doesn't that mean the 3,080 is taxed already? So essentially you're paying taxes on something that you will be paying for anyway. Higher potential for return since the amount taxed will be greater than what your income should be.