Assignment Extension
As soon as it is known that the one year limit is expected to be exceeded all travel benefits will be treated as taxable income after the one year mark. For example: If you’re 10 months into your 1 year assignment and you receive an extension that would extend beyond the 1 year mark, 2 contracts will be written, 1 for the qualification of the tax free stipend for the time period up to the one year and 1 for an all taxed hourly rate for the time period beyond the one year.