It's a common question among travelers: why does my agency need to know what I spend my tax-free money on?
In short, because they are the ones paying out this tax-free money, staffing agencies not only have a right to that information, but they need it to ensure they are remaining in compliance with the IRS.
For travelers to receive tax-free stipends, they must be able to show that they meet the qualifications for it and indicate that the money will be used as it was intended. Proof of this is often shown on Tax Residency Forms.
Watch the video below for more about Tax Residency Forms!