Hoping I can get some input from someone experienced in taxes regarding consulting work. Here is my situation: I've been working as W2 consultant onsite for a client for close to one year. All of my travel expenses have been reimbursed tax free up to this point. However at the one year mark, all of my expenses become taxable income per IRS rules. As a work around to this, it is being proposed that I work remotely for 4-6 weeks to "reset" and then begin travel again with my expenses being reimbursed tax free. Is this a viable strategy? I've heard of others employing this strategy in the past but I can't find anything definitive on it. Last year I encountered the same problem but got around by taking a month off completely before starting a totally new contract. This year it would just be a continuation of my current contract.
