The 50 Mile Rule? Exposing the Truth About This Industry Myth!

Unfortunately, over the years, a common internal company policy gave birth to the myth that as long as you drive over 50 miles to get to your assignment, you can get tax-free housing allowances. That’s simply not true, so let’s clear up the confusion!

The logic and facts of it are simple. It’s not about distance; it’s about where you stay overnight. According to IRS pub 463, a job is far enough away if “you need to sleep or rest to meet the demands of your work while away from home.” If that rest takes place in your own bed at home, you are not away from home. By returning home, you are proving that it is within commuting distance of your residence, and therefore, not a travel assignment. Otherwise, all travelers could just work 51 miles away from home and reap the benefits.

To get a full breakdown of what the rules really state, and the difference between a “Facility 50 Mile Rule” and a ” Taxable Stipend 50 Mile Rule,” check out the video below.

The Difference Between a Facility 50 Mile Rule and a Taxable Stipend 50 Mile Rule