- Overtime Pay
If you’re considering working overtime for the extra money, you should consider asking for a higher taxable. Overtime laws stipulate that overtime pay is at least paid time and a half of all taxable income. A larger taxable income can help you earn more with Overtime Pay.
- Loan opportunities.If you’re applying for a mortgage or a loan, banks do not consider tax free stipends or reimbursements in their accounting procedures. Banks will only look at your taxable income
- Social Security.The check you get when you retire depends on the 35 years of your highest taxable income. Tax-free stipends or reimbursements are not considered for Social Security.
- Chance of Injury.If you get hurt and can’t work you’re entitled to 2/3 of your taxable pay. This rate does not take into account tax-free stipends or reimbursements.