It may not be rocket science, but the concept of travel nurse taxes can still be pretty confusing. If you are considering travel nursing or just starting out in the industry, you probably have a lot of questions. You’re most likely wondering how you will be taxed. As a travel nurse, your assignments will only last an average of 13 weeks. This means that you will be moving to a new destination every couple of months. Typically, there are stipends or reimbursements for travel nurses. These stipends and reimbursements are for expenses such as meals, parking, transportation fees, and housing. You can also be part of the tax advantage plan, in which some expenses are tax-deductible and some are non-taxable. This is how a lot of travel nurses handle taxes. To gain a better understanding of your options, continue reading our travel nurse tax guide.
Travel Nurse Tax Guide
To Do’s Before Your Travel
One of the most important requirements for travel nurse tax purposes is a permanent tax home. In addition to this, you must seek travel nursing jobs which are outside of a reasonable commuting distance from your permanent tax home. This is the only way you will be able to qualify for nontaxable travel benefits such as transportation and housing costs. Failing to meet both of these requirements can result in taxable income from the start of your trip. Nobody wants that, do they?
You must fill out a Tax Home Representation Form before you start any type of new travel nursing assignment. Even if you’ve completed this form before, you still need to fill it out whenever you change your location. It is recommended to have a tax adviser assist you with this process. Your tax advisor, as well as your recruiter, will be able to help you every step of the way.
Travel Nurse Taxing Facts
If your current travel nursing assignment is located within a reasonable commuting distance from your personal residence, travel benefits will not be covered. This is because your travel costs do not technically warrant compensation. If you are traveling further away from your permanent residence, we recommend that you keep track of your mileage to and from your new travel nursing destination. In regards to work-related injuries, you will receive 2/3 of your hourly taxable pay rate.
Many new travel nurses are curious about what a “tax home” actually means. This confusion is completely normal for those of you who are just starting out. A “tax home” is not necessarily where your permanent residence is. Rather, it is a place where you spend the majority of the income you earn. Due to this fact, you can think of it more as a “money home.” It’s important to follow all of the conditions of a tax home. If you fail to do so, you will be claimed as an “itinerant worker.”
Here’s one final piece of advice for all of you new travel nurses out there. Make sure your travel nursing assignments stay within the typical 13-26 week period. If you continuing completing assignments past this 26-week maximum, the IRS will most likely think that you have abandoned your permanent residence.
Hopefully, this travel nurse tax guide has helped you understand a little bit more about tackling taxes as a travel nurse. For more information regarding travel nurse taxes, watch our video below!
Remember that your recruiter, your employer, and your tax advisor are valuable resources. They are there to help you, so it’s in your best interest to keep in contact with them about any questions you have.
October 9, 2020
I am a traveling nurse working in North Carolina. I have had 1 – 13 week assignment at 1 clinic & have almost completed another 1 in a different town but still in NC. Now they want me to extend my contract another 13 weeks. That would be a total of 3 – 13 week assignments in NC. How many can I work in NC before they want to tax my stipends..???
October 12, 2020
Hi Patti, are you working through an agency? If so, they should be able to help answer that for you. If not, you can also check out our FAQ page – https://www.travelnursesource.com/travel-nurse-faqs And if you submit this question on that page, it will be distributed to a handful of recruiters from all different agencies, so maybe one of them will be able to help you!