As a travel nurse, you enjoy the freedom of exploring new places while helping patients in need. However, tax season can feel overwhelming due to multiple job locations, tax homes, and per diem allowances. Understanding how to file your taxes properly can help you maximize deductions and avoid unnecessary headaches. Here’s a simple guide to help you navigate tax season as a travel nurse.
Determine Your Tax Home Your tax home is the location where you regularly conduct business. The IRS considers a place your tax home if you meet the following:
You maintain a permanent residence where you incur expenses.
You return to your tax home regularly.
You have a business reason to maintain that location.
If you don’t have a tax home, the IRS may classify you as an itinerant worker, meaning all your income (including per diems) is taxable.
Keep Track of Your Income and Contracts As a travel nurse, you likely work with multiple agencies and hospitals throughout the year. Request a W-2 from each employer and keep records of your contracts, stipends, and reimbursements.
Understand Per Diem and Stipends Many travel nurses receive tax-free stipends for housing, meals, and incidentals. These are not considered taxable income if you have a legitimate tax home. However, if you don’t meet the IRS tax home criteria, these stipends could be taxed as income.
Track Deductible Expenses You may be eligible for deductions that can lower your taxable income. Keep receipts and records for expenses such as:
State-to-state travel costs (flights, gas, mileage, lodging)
Licensing and certification fees
Uniforms and work-related supplies
Continuing education expenses
Manage State Taxes Since travel nurses work in multiple states, you may need to file taxes in more than one state. Typically, you pay taxes to the state where you work, but your home state may offer a credit to prevent double taxation. Be sure to check state tax laws to avoid surprises.
Work with a Tax Professional Because travel nursing taxes can be complex, working with a tax professional who specializes in healthcare or travel professionals can save you time and money. They can help ensure you’re taking full advantage of deductions and complying with state regulations.
File on Time and Stay Organized The tax deadline is April 15th, but if you need more time, you can file for an extension. However, extensions don’t delay tax payments, so estimate and pay any owed taxes to avoid penalties.
Final Thoughts Filing taxes as a travel nurse requires organization and knowledge of tax laws. By keeping good records, understanding your tax home status, and leveraging deductions, you can make tax season much smoother.
Need help finding your next travel nurse assignment? Start your next adventure by emailing letsgotravel@tglmedstaff.com