I'm hoping for a second opinion because this is the first year that I will be filing a Form 1040 with my new travel job. I am a traveling occupational therapist with an income of $70,000 per year. Of that, around $25,000 is taxable wages per year. The remaining $45,000 is a non-taxable living expense stipend that I receive because I am traveling away from my tax home. This is standard practice in my role.
My W2 only lists the $25,000 which I assume is what I put into Line 7 (Wages, salaries, tips, etc) on my IRS Form 1040.
However, am I right in thinking that I'll list the non-taxable $45,000 on Form 1040 under both:
- Line 21 (Other income), and
- Line 40 (Itemized deductions from Schedule A).
If so, I also presume that I then fill in:
- Form 1040 (Schedule A), and
- Form 2106 (Employee Business Expenses)
I think I've understood the process but just wanted to get a second opinion as to if I had wholly misunderstood :) Am I wrong and only need to list the $45,000 in one place on Form 1040?