Tax Tips for Travel Nurses

For those just getting started in a travel nursing career, the very thought of filing a tax return will have their feet quaking in their comfy Noka/Brooks/Dansko shoes. Taxes can be tricky, even for the veteran travel nurse, especially when working in multiple states in a single year. Not sure how to correctly separate your taxed hourly pay from your travel stipend? Not to worry, we’ve got tips from tax preparation experts that can help.

Don’t change your address when you travel for work

First things first - keep your home address. Think of travel assignments as a vacation rather than an actual move or relocation. Just as you don’t change your address when you go on a trip, don’t change your address when accepting a travel assignment. Not only does an address change pose a pesky inconvenience, but it can also cause problems when managing stipends.

Tip: Once you accept a travel nursing assignment, make sure to set up a plan for your mail and packages.

Understand and manage per diems wisely

We’ll use the term “per diem” and “stipend” interchangeably. Make sure your per diems qualify as non-taxable. For the reimbursement of living expenses while on assignment—otherwise known as per diems—to be considered tax-free, traveling nurses must be able to prove the duplication of expenses at home, where they are financially responsible for maintaining the property.

Double and triple check that any per diems offered as part of your compensation package will qualify as tax-free..

Keep receipts

Organize a plan that makes saving receipts an easy-to-implement endeavor you can maintain throughout the year. Resist the nudge to worry about receipts later, as that approach is guaranteed to spell disaster. What type should be stowed away in a safe place? Every receipt for expenses incurred traveling to and while on assignment, including—

• Meals, fuel, lodging for the trip
• Housing/lodging expenses while on assignment
• Uniform/scrubs
• Utilities
• CE courses

If filing paper receipts seems like too much of a hassle, consider electronically storing receipts via an app like Expensify.

Tackle the issue of working in multiple states

Nurses who work in more than one state during a calendar year will be subject to state income taxes in both states. The exceptions are if a state has a reciprocal agreement with the state where the nurse’s permanent residence is or work assignments land in a state with no state income tax. Also, it’s essential to claim residency in only one state –the one where the nurse’s permanent home is. Travel nurses should not file as “part-year” residents in any states where their nursing adventures took them.

If this sounds complicated, that’s because it is. Mastering the state income tax situation may mean rolling up your sleeves and delving deep into tax laws. Or, to give you peace of mind and lighten your mental load, you can always consult a tax professional. Be open to whatever means provides the most detailed and accurate information.

If you’d like to get additional support from fellow travelers, we recommend joining the Travel Nurse Tax Center Facebook Group, which boasts nearly 10,000 members. Here, you can ask questions, do some networking, and get tried and true tax tips from experienced travel nurses.
Travel nurses can successfully navigate the complex world of filing tax returns by asking questions and seeking answers.