It is officially tax season! Don’t get too excited–or perhaps you should… Did you know that travel nurses could be reimbursed for business expenses such as meals, travel, and housing through Tax Advantage programs? Read on to learn how tax deductions could afford you a pretty sweet vacation!
Do You Qualify?
In order to begin your deductions you must have:
- A permanent (“tax home”) address where you make recurring mortgage/rent payments and reside in between travel nursing assignment.
- A temporary assignment lasting no more than 12 months.
Put Money Back in Your Wallet!
Before filing this year’s taxes, make sure you don’t miss out on these deductions:
Any means of transportation you use to get to and from your assignment is deductible—minus reimbursements or allowances given by the employer. If you drove 600 miles in your own vehicle at the 2012 55.5-cent rate, your deductions would total $333! That’s enough for a round-trip plane ticket across the country–for your well-deserved vacation, of course!
You are permitted to deduct one meal for every day you work from home on assignment using “per diem” rates. Per diems are standard rates issued by the IRS for lodging and meals. Per diems eliminate the need for receipts and expense reports by giving a standard daily allowance without regard to what is actually paid. This deduction can only be applied if you are not already given an allowance by your staffing agency.
In most cases, the staffing agency you are under contract with arranges housing or an allowance for you. However, few instances will allow you to deduct housing expenses including utilities such as heat, electric, and water/sewer, and even furniture!
See places you’ve never seen before, gain an insurmountable wealth of knowledge and experience, and get reimbursed for your transportation, meals, and housing while on assignment! Could travel nursing get any better? Consult with your trusted tax preparer and assess your qualifications to reap the one of many rewards.