travel nursing rules

Travel Nurse + Allied Health Tax Guide

Navigating the world of taxes when you take your first travel nurse job or allied health assignment can feel like a daunting task. With unique income structures, tax homes, and multi-state tax filing, it's no wonder that tax season can feel overwhelming. 

But don't worry! This comprehensive guide will help you understand the ins and outs of travel nurse taxes, travel nurse stipend rules, travel nurse tax homes and tax deductions, and other tax rules you should be aware of while traveling! Keep in mind that individual circumstances can greatly impact your taxes and stipend eligibility, so be sure to connect with a tax professional for personalized advice!

Let’s get started! 

• Understanding Your Income
• Contract Types
• Qualifying for Stipends
• State Taxes

Lower Taxable Income Considerations

• Audits and Travel Nurse Taxes

Travel Nurse + Allied Health Taxes: Understanding Your Income

Travel nurses and allied health professionals have a unique income structure compared to traditional staff. You can read our blog on how much travel nurses make to learn more details, but we’ll go ahead and provide a quick overview!

Travelers receive a portion of their pay that is taxed and “per diems”, or stipend payments, that are not taxed.  Stipends can be a huge advantage of travel nursing because if the full amount is not used on your travel and living expenses, that leftover ends up as extra cash in your pocket!  You can think of stipends as an allowance for lodging, meals, and incidental expenses while you’re working away from home.  It’s important to remember, though, that you must meet certain criteria to be eligible for stipends and avoid any issues with the IRS! We’ll get into those details soon.

Contract Types: Travel vs Local Contracts

It’s also important to understand that you don’t have to qualify for stipends, or choose to receive stipends, in order to take travel assignments .  There are some circumstances in which someone may prefer for their income to be fully taxed.  This may be because they don’t qualify for stipends due to location or because they’re anticipating a loan, social security, or anything else that is based on taxable income.  In these cases, you can still take a travel assignment, but choose to take a contract where your hourly rate is higher and your pay is fully taxed.  This is referred to as a local contract .  If this is the case for you, be sure to let your Nurse Advocate know! 

Travel Nurse + Allied Health Stipend Rules: Qualifying for Non-Taxable Income

To qualify for tax-free stipend payments, you need to be able to show the IRS that you have a "tax home".  The IRS defines a tax home as “the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. ”  This may sound a little bit confusing, so let’s break it down.

You can qualify for a tax home in two main ways:

• Your primary area of residence is also your main area of income.   This typically does not apply to travel nurses, but would be applicable for a staff nurse who is working at their local hospital because they are living within the same geographical area where they are making most of their money throughout the year. 
• You visit your primary residence at least once every 12 months and can prove that you are paying for expenses to maintain your primary home.  This is more common for travel nurses and allied health professionals. Generally this is where you have lived and have worked a staff job that has been your “main place of business”.  You should be able to show that you still regularly return to this location and incur expenses such as a rent or mortgage, even while you’re working on a travel assignment.

In general, travel nurses and allied health professionals can take these steps to maintain a tax home: 

• Keep proof of payments that show that you’re incurring expenses at this location.  This may include invoices for a house sitter, mortgage, rent, utilities, etc. 
• Maintain your driver’s license and car registration in your home state. 
• Keep a per-diem job, if possible, in your home state. 
• Return to your home at least once a year for about 30 days. 
• File a residence tax return with your home state. 

It’s important that you’re able to show that you’re duplicating expenses by traveling, meaning you’re paying for the same types of expenses at your tax home and while on assignment in your new location.  This means that if you rent out your home while you’re gone, you cannot classify it as a tax home, because you’re not duplicating your expenses. 

Travel Nurse + Allied Health Tax Rules: State Taxes

It’s important to know that as a travel nurse or allied health professional, you need to file taxes in every state you work in, as well as the state that serves as your permanent tax home.  Keep in mind that working a travel assignment (under 12 months in one location) does not mean that you have moved your primary state of residence in the eyes of the IRS.  Instead, you’re just away from your home temporarily, which is the important distinction noted above in regard to maintaining a tax home. 

In 2022, tax reform laws did away with many deductions at the federal level, but some states do still allow you to deduct job expenses on your state tax return.  It’s a good idea to keep receipts for things like: 

• Housing and lodging expenses while traveling 
• Mileage to and from assignment and to and from work while on assignment
• Uniform and scrub expenses 
• Work-related expenses such as CEU’s or certifications 
• Meals while on assignment 

Keeping record of these expenses can help make tax preparation easier.  It’s a great idea to snap a picture of these on your phone or use a document scanner app to keep these organized as PDF files, ready to submit with your taxes.

One of the appeals of travel nursing is that you have the potential to make a high income, especially through non-taxed stipends if you qualify. However, because the additional stipends you receive as a travel nurse are not taxed, they are not considered income, and will not be reflected in your annual income.

So what does that mean, exactly?  If you’re anticipating that you may need to get a loan or mortgage, or nearing the age when you’ll collect social security, you may want to consider taking a fully-taxed pay package.  All of these items are calculated based on your taxable income. The lower your taxable income, the lower the loan amount you will qualify for.  Similarly, the lower your taxable income, the less you are contributing to Social Security, and the less you’ll be able to collect when you’re ready to retire. 

You still have options in these cases, though.  Some lenders are familiar with working with travel nurse pay structures and can be helpful in planning for your loan or mortgage.  Another option is to declare that you are not eligible for stipends, or do not have a tax home, and receive your full pay as taxable income.  You should speak with your personal tax consultant to see what will be best for your situation. 

Because of the low taxable income you receive in addition to stipends, the travel nursing industry tends to be scrutinized closely by the IRS.  As a travel nurse or allied health professional, you may be more at risk for an audit if you're displaying high expenses and low income. 

We say this not to worry you, only to highlight the importance of working with a trusted tax professional. You can reduce your risk of an audit, or increase your chances of getting through an audit favorably, by always making sure to work with a certified tax professional who is familiar with traveling healthcare professionals. 

How do I receive stipends? 

As long as you indicate that you are eligible for stipends when you sign your contract, you will automatically receive stipends as part of your paycheck each week. They're considered expense reimbursements that cover expenses like meals, housing, and work-related costs, but you do not need to submit receipts in order to receive the payment.  Be sure to read the section above and check in with your tax consultant for eligibility!

Do I need to file taxes in every state I work in?

Yes, you'll likely need to file a non-resident tax return in every state you've worked in within the past year, as well as the state that you consider your permanent tax home.

What happens if I work in a state with no income tax?

If you work in a state with no income tax, you won't owe state income tax for that state. However, you may still owe income tax to your home state, unless your home state also has no income tax.

Am I more likely to get audited as a travel nurse?

The travel nursing industry tends to be scrutinized closely by the IRS, so you may be more at risk for an audit. Working with a certified tax professional can help you navigate this risk.

What happens if I extend in one location for greater than 12 months? 

It's best to consult your tax professional as to how you handle your contract as you approach the one year mark!  The answer to this question will depend on your unique circumstances.  We do offer local (fully taxed) contracts, or some nurses choose to take some time off between contracts, then extend.  Since everyone's situation is different, your tax advisor would be the best person to consult.  Once you do so, let your Nurse Advocate know how we can help! 

Can I handle my taxes myself, or should I hire a professional?

While you can handle your taxes yourself, it's often beneficial to work with a tax professional who is familiar with the unique tax situation of travel nurses. They can help ensure you're meeting all tax obligations and taking advantage of any potential deductions.

Are there specific tax deductions for traveling healthcare professionals?

Travel nurses and allied health pros can take advantage of numerous tax breaks and deductions related to their assignments. Tax deductions reduce your taxable income to help you save money on your tax bill. Read more on this topic in our blog on tax deductions for traveling healthcare professionals .

What records should I keep for tax purposes?

You should keep records of all your income, including your pay stubs and W-2 or 1099 forms, as well as receipts for any tax-deductible expenses. This can include receipts for travel, housing, meals, uniforms, continuing education, and any expenses related to maintaining your tax home. You’ll also want to make sure that you save a copy of each assignment you take, showing your contract dates and pay breakdown. 

Final Thoughts

Stay informed, stay prepared, and you'll be able to focus on what you do best - providing exceptional care to those who need it most. Remember, this guide is meant to provide general information and should not be considered tax advice. Always consult with a tax professional to ensure you're meeting all tax obligations and taking advantage of any potential deductions.

At Trusted Health, we're here to support you every step of the way. From finding the perfect assignment to helping you navigate the complexities of travel nurse taxes, we're committed to making your travel nursing journey as smooth and rewarding as possible.

Sign up with Trusted Health today and join a community of healthcare professionals who are transforming the future of healthcare. Let's navigate this journey together!

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Travel Nurse Taxes: Preparing for Tax Season

• Travel nurses have unique tax situations that require special consideration.
• Travel nurses are strongly encouraged to use a tax professional with experience.
• There are concrete steps you can take to make tax season easier for yourself as a travel nurse.

Travel nursing is a unique form of employment with many different tax considerations. Travel nurses are paid a premium to be available on short notice and jump into work virtually without orientation.

Traveling reached all-time popularity during the COVID-19 pandemic, with many nurses leaving their staff positions for better pay and more control over their schedule. According to AMN Healthcare, one of America’s largest staffing agencies, 95% of U.S. hospitals reported using travel nurses during the pandemic.

Though those numbers have decreased, travel nursing remains an excellent option for staff nurses looking to increase their income, expand their skill set, or experience a new location. If you’re considering making the switch, know the basics of tax preparation, tips to maximize your deductions, and mistakes to avoid.

Avoid Making These 4 Mistakes When Preparing for Tax Season

As the name implies, one of the biggest draws of travel nursing is the opportunity to work in many locations throughout the country. However, while the big paychecks and exotic travel are huge draws, the complex reality of multistate tax preparation can be daunting. Misinformation is everywhere, and it’s essential that you know your rights and responsibilities to avoid costly tax mistakes.

We spoke with Sarah Gaines, MSN, RNC-OB, an experienced travel nurse and the founder of the Six Figure Travel Nurse LLC, who shared her tax prep tips for travel nurses.

When asked her number one piece of advice for new travelers, Gaines says, “I’ve learned throughout the years never to take tax advice from your recruiter. You may assume they’re the expert — and often, they’re very confident giving that advice. But only take tax advice from tax professionals.”

And, because we aren’t tax professionals, we spoke to financial pros to get their advice. Avoid these four tax mistakes as a travel nurse.

Neglecting to Research

Before you jump into your first travel nursing assignment, it’s crucial that you do your research. The thrill of a new contract can be dizzying, but make sure you’re adequately prepared.

Answer the following questions before you sign on the dotted line:

• What is the cost of living in the area you’re considering?
• Is that cost factored into your nontaxable stipend?
• Do you meet the IRS requirements for duplicating expenses?
• Are you classified as a W2 employee or an independent contractor?

Underestimating Costs

While travel nursing does pay significantly more than most nursing jobs when factoring in your tax-free stipend, it’s not without costs. The cost of moving, travel, and continuing education are all things travel nurses often pay upfront and need to be accounted for in your budget.

Missing State-Specific Requirements

From a tax perspective, the most complex aspect of travel nursing is accounting for the different taxes, rules, and regulations of each state you work in. If you travel in two or more states throughout the year, popular tax preparation software may not be able to meet your needs adequately.

It’s recommended that you reach out to a tax professional who has experience in tax prep for multistate submissions.

Believing the Myths

Travel nursing myths abound. One myth is that you must only live 50 miles from the facility to qualify for the nontaxable living stipend. Gaines says this is false and a mistake that could cost you.

She says, “The IRS doesn’t care that you live 50 miles away. They care that you can prove you’ve duplicated expenses. However, many agencies have rules like this. That’s where the myth came from, a misunderstanding between agency and IRS requirements.”

You must prove you reside in your home state and are duplicating expenses to qualify for that tax-free stipend. This means being able to produce records, such as a mortgage, lease, or utility bill.

Gaines also warns against accepting legal advice from social media influencers or recruiters for the same reason. For example, many recruiters may advise investing in a P.O. Box as a workaround, but this is tax fraud.

6 Tax Prep Tips for Travel Nurses

Now that you know things to avoid during tax preparation, let’s dive into the best tips to keep you organized and maximize your tax benefits.

Use an Experienced Tax Professional

Every financial professional and travel nurse we spoke to strongly recommends using an experienced tax professional, specifically one who has worked with travel nurses, if possible.

While self-service tax software may have been a convenient choice as a staff nurse, travel nurse tax preparation can get complicated quickly, and the stakes are high.

Consult Before Signing

If you choose to use a tax professional to prepare your taxes, send them your contract before signing. Don’t be afraid to ask a tax professional to evaluate your contracts. They may be able to help you negotiate your terms by understanding your deductions and the tax implications of overtime.

Build an Emergency Fund

Because things can change on a dime, it’s vital to have an emergency fund before you start traveling. If possible, maintain savings for 3-6 months’ worth of living expenses. This covers you in case unexpected costs arise or your facility cuts your contract (which happens sometimes).

Know Your Contract

The most critical step in accepting your travel assignment is reading your contract thoroughly before signing. Contact your recruiter first if you find something in your contract that you don’t understand or object to.

But be wary of verbal promises. Make sure you get everything in writing in the contract itself. Legally speaking, if it isn’t written, it isn’t binding.

Document Everything

Just like at your bedside nursing job, documentation is key for tax preparation. The IRS requires proof of duplicated expenses, receipts, and proof of income in case of an audit. You’ll want to keep careful records of all your contracts, income from per diem roles in your home state, and expenses.

William O’Donnell, a certified financial fiduciary and president of Heartland Financial Solutions LLC, recommends using technology to streamline this process.

O’Donnell says, “Try using an expense tracking app that lets you record expenses and records copies of receipts. Having good records is crucial to maximizing your tax deductions.”

Use a Separate Account

A good accounting tip to keep you organized throughout the year and minimize headaches during tax season is to open a separate account where all your travel nursing transactions occur.

Maintaining separate bank accounts and records will make it much easier to itemize deductions and spot potential issues for your tax preparer.

Travel Nurse Tax Write-Offs

There are many expenses that travel nurses can write off, but make sure you don’t double-dip. An example of double-dipping would be writing off a cardiopulmonary resuscitation course when you’ve already been reimbursed for that by your agency.

Each tax write-off is different; some things require calculations. Again, consult a tax professional if you need more clarification.

Here is a noncomprehensive list of travel nursing tax write-offs:

• Continuing education for nurses
• Car expenses, such as repairs or registration
• Nursing uniforms
• Travel expenses, including tolls
• Malpractice insurance for nurses

Consult a tax professional if possible and keep meticulous records of all expenses and income to avoid common tax pitfalls. Now that you know these mistakes to avoid and tips to use, you’re ready for tax season as a travel nurse.

Meet Our Contributors

Sarah Gaines, MSN, RNC-OB

Sarah Gaines is a travel nurse expert, online educator, and mentor helping nurses seek out, secure, and leverage premium contracts so that they can escape bedside burnout, accelerate their career, and retire early. Over the years, she’s cultivated a growing community that connects thousands of Six Figure Travel Nurses from across the globe! Gaines uses the power of social media to share insightful travel nurse tips, a behind-the-scenes look into her life as a full-time digital nomad, and the wisdom she’s gained as a retired RN turned entrepreneur who continues to build wealth while traveling the world.

William ODonnell, CFF

William O’Donnell is a financial advisor and certified financial fiduciary with a master’s degree in healthcare administration. He is the president and wealth manager at Heartland Financial Solutions . He has been serving financial advisory clients for more than 30 years.

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Travel nurse taxes: 9 things to know before filing this year.

Travel nurse taxes can be especially tricky. You’re often filing in multiple states and dealing with uncommon concepts like per diems. To help you navigate your travel nurse taxes this year, we spoke with Joseph Smith, tax guru and president of TravelTax . The following nine tips can make filing your travel nurse taxes easier, save you money, and help you avoid future tax liability.

1. Make sure you qualify for all non-taxed per diems

Everyone has to have somewhere to live and something to eat, but since that financial burden may be double for traveling workers, the cost is alleviated through per diems paid to you by your agency on a tax-free basis. However, you can only take advantage of this benefit if you can prove you are duplicating expenses at home and at your work assignment or have a regular job that you return to annually in the same area. Be sure you qualify for tax-free per diems before accepting them as part of your compensation package.

2. Be careful when using tax software

If you’re filing travel nurse taxes in two or more states, everything gets more complicated. Smith warns, “Even with a professional-level software, for multi-state taxes there are overrides that have to be done and you have to know where those overrides are.” This means it’s easy to misread instructions and make mistakes when using programs like TurboTax for filing in multiple states. “Tax software is only as good as the person inputting the numbers,” he says.

3. Keep your contracts (and read them)

Simply enough, Smith says he wishes more travelers would keep their work contracts and read them, because that’s where to find so many answers for your taxes. “When you’ve got a question about how you’re paid, it’s right there,” he says. “If it’s not being done as written then you want to say something, because it has tax implications as well as affecting your paycheck.”

4. Don’t change your address when you travel

If you’ll be filing taxes in multiple states, things can get messy if one of your temporary residences looks like your permanent residence. To keep everything straight, Smith recommends thinking of your work assignments as vacations: “You are not moving, you’re just on a vacation. You don’t change your address when you’re on a vacation — even though it’s a working vacation.”

5. Know what defines a tax home

To qualify for tax-free per diems and deductions, your tax home must meet two out of three of these qualifications:

• Have regular employment in that area
• Have a permanent residence in that area that you are financially responsible for the upkeep of when you’re away
• Plan to return and spend at least 30 days there per year

6. Don’t be surprised if a state wants more information

“States can track things pretty well now, and they’re out for revenue,” says Smith. This means if you’re getting a notice, the government may ask questions to verify your permanent residence or tax home.

7. Keep all your documents together

Smith says a common mistake he finds with travel nurses is that they don’t save their documents. If you’re wondering which documents to keep track of, here’s a handy list. (Note: these should be saved for six years in case of an IRS audit)

• Copies of all contracts
• Mileage log
• Receipts (except grocery/food receipts and gas receipts)

8. Subscribe to a tax newsletter

Smith says that tax laws are always changing, so it’s important to keep up-to-date on tax reforms. For example, the tax regulations on remote work (such as working for a telehealth provider) are evolving and may add complexity to state taxes. He recommends subscribing to a newsletter or the TravelTax blog to stay up to date on the latest tax developments that might affect you.

9. Consider using a tax advisor

A tax advisor can be helpful in filing travel nurse taxes with everything from understanding the original contract to calling payroll offices and agencies. Smith says, “If there’s a problem, I get results whereas if people try to call themselves, they won’t get results.” So if you feel overwhelmed by your taxes, don’t forget that there are professionals who can help.

Following these nine tips will help you in your tax preparation, however, this is not an exhaustive list and every tax situation is unique. So be sure to consult with a tax professional for answers to specific questions about your travel nurse taxes.

RNnetwork creates custom pay packages for every travel nurse job . Give us a call at 800.866.0407 to discuss optimizing your pay to better suit your individual circumstances.

The information contained herein is general in nature and is subject to change. Tax information contained in this document is not intended to be used, and cannot be used, by any person as a basis for avoiding tax penalties that may be imposed by the IRS or any state. We recommend each taxpayer seek advice based on their circumstances from an independent tax advisor.

Last updated 01/31/22

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Home / Nursing Careers & Specialties / Travel Nurse

Travel Nurse

What is a travel nurse, how to become a travel nurse, travel nurse faqs, what does a domestic or international travel nurse do, travel nurse salary and employment, helpful organizations, societies, & agencies.

Travel nurses are RNs from various clinical backgrounds who work for independent staffing agencies. They are assigned to different care areas on a temporary basis to fill in short-term employment gaps.

Travel nursing is a specialty that took root when the field of nursing faced a nationwide shortage. Hospitals, clinics, and other care areas had unfilled positions, yet had patients needing care. To try and attract nurses to the open positions, employers offered higher pay, housing, and covered the cost of relocating.

Due to these shortages, health care facilities have vacancies that need to be filled—and travel nurses are often the ones to fill open positions. Not only do travel nurses work in health care in any state in the country, but they also work outside of the United States as international travel nurses. The adventure and excitement of new opportunities, along with higher-than-average pay, are facets of travel nursing that many RNs find attractive.

Why Are Travel Nurses Important?

Travel nurses are an important part of the health care team because they help bridge the gap between supply and demand in the field of nursing. Mandatory nurse-patient ratios have led to increased patient safety and lower patient mortality . While this is a positive finding, and more and more states are passing legislation to implement staffing ratios, there are not enough nurses to fill the openings. Travel nurses assigned those open positions help to increase patient safety and improve patient outcomes.

Additionally, nurses from different educational backgrounds, care areas, and geographic locations bring a great deal to the practice of nursing. Sharing ideas and practices not only benefits patients, but also other nurses.

A travel nurse should have the following characteristics to excel in the role:

• Enjoys experiencing new cities, towns, and organizations
• Enjoys freedom. Travel nurses choose when and where they work, and choose their duration of employment
• Enjoys flexibility. Travel nurses create their schedules, benefits packages, and income based on which agency they choose to work
• Thrives on challenges. Moving to different states or overseas and being “the new nurse” repeatedly is challenging. Learning new organizational systems and workflows is particularly challenging
• Loves learning new things. Each assignment takes travel nurses to new health care facilities, some with higher levels of technology or different standards of practice. Each experience helps nurses build upon their knowledge base

Additionally, travel nurses should have supportive families and friends. It's difficult to either pack up and move an entire family or leave your family and friends behind. The flip side to this is that new relationships are formed in each new location.

What Are the Educational Requirements for Travel Nurses?

Those interested in the specialty of travel nursing should first pursue a nursing degree through a two or four-year university. Obtaining an associate's degree ( ADN ) or bachelor's degree ( BSN ) in nursing is required. A BSN is not required to be a travel nurse, but some health care facilities only hire BSN-prepared nurses. The staffing agency in which the nurse is employed should match the nurse appropriately based on educational requirements.

After completion of an accredited nursing program, successful completion of the NCLEX-RN is required for licensure.

Most travel nurse agencies require a minimum of one year of hands-on experience in the chosen specialty of nursing. Additionally, some agencies will only hire BSN-prepared RNs. International travel nurses should speak the language of the country they are to practice in, as communication is an important part of effective healthcare delivery. Nurses are encouraged to research agencies when considering travel nursing.

Are Any Certifications or Credentials Needed?

No additional exams are required for travel nursing. Based on the specialty, certification(s) may be required. Examples include:

• Basic Life Support (BLS)
• Advanced Cardiac Life Support (ACLS) may be required
• Stroke care certification
• Telemetry certification
• Advanced Cardiac Life Support (ACLS)
• Pediatric Advanced Life Support (PALS)
• Critical care nursing (adults, pediatric, neonatal)
• Pediatric Advanced Life Support (PALS) may be required
• Neonatal Resuscitation Program (NRP) certification
• Neonatal Resuscitation Program (NRP)
• Trauma Nurse Core Course (TNCC) certification

Additional specific requirements may be necessary for international travel nurses. These include:

• Acquiring a passport and work visa (usually handled by the agency)
• Additional immunizations
• Learning a new language
• Learning about diseases unique to the area

How Can a Travel Nurse Receive a Tax-Free Housing Stipend?

Housing is one of the most significant concerns for a travel nurse. There are a few options available, and it depends on the travel nurse agency/company regarding how accommodations are set up. Some companies provide housing (i.e., apartment, duplex, etc.). Some companies offer a housing stipend, or a fixed amount of money each month to apply towards housing.

First, nurses need to be aware of where their “tax home” is, as stipends are tax-free if working away from the tax home. Having a tax home is necessary to receive tax-free housing. A "tax home" is defined as the general vicinity of an individual's primary place of work (regardless of where the primary residence is). Generally, the IRS considers someone traveling away from home (i.e., their "tax home") if it exceeds one workday.

Different travel nurse agencies offer different stipends - it’s important to research what the living expenses are in a specific area to ensure housing is adequately covered. The General Services Administration (GSA) lists the maximum daily amount for lodging, meals, and incidentals with regards to travel expenses . The key word is MAXIMUM. It's not required that a company pay employees the listed stipend. In fact, some travel nurse agencies offer higher hourly wages instead of housing stipends. Additionally, the GSA rates are based on short-term travel - usually less than a month. Travel nurse contracts can last three months or more.

Are Nursing Licenses Valid When Traveling and Working in Other States?

Those interested in travel nursing may have questions about licensing; specifically, how are licenses recognized if practicing in another state.

Depending on the state, new licensure is not necessary. The National Council of State Boards of Nursing (NCSBN) developed the Nurse Licensure Compact which is an agreement between specific states to recognize nursing licenses without having to apply separately for licensure in another state. In other words, a nurse living in a "compact state" (one which is part of this agreement) can practice in another compact state without having to obtain additional licenses. There are now uniform licensure requirements that must be met when seeking a multistate license under the compact agreement. States that participate in the compact agreement can be found on the NCSBN website .

If not part of the compact agreement, some states allow nurses to obtain temporary licenses by endorsement. These are valid for specific lengths of time, so nurses must visit each state’s Board of Nursing website to determine specific temporary license requirements. If extending the assignment past the temporary license time frame, nurses must apply for a permanent license. Permanent licenses are also required for states that don't grant licensure by endorsement and don't participate in the NLC.

Travel nurses have a broad range of responsibilities and duties, and specific tasks depend on the specialty in which the nurse is trained. General nursing responsibilities and duties include:

• Using the nursing process of assessing, diagnosing, planning, implementing, and evaluating to care for patients in a variety of healthcare settings
• Administering medications, and fluids, assisting with activities of daily living and patient mobility
• Reviewing and interpreting diagnostic tests such as lab work and imaging
• Provide monitoring and oversight in all aspects of patient care
• Collaborating with physicians in developing a plan of care
• Assessing the psychosocial needs of patients and families
• Recognizing and intervening in clinically unstable patients
• Providing resources for patients and referring as necessary
• Educating patients and families in all areas of healthcare maintenance and prevention
• Working in assignments anywhere from eight to thirteen weeks (on average) in the U.S., one to two years if outside the U.S.
• Learning various patient care systems/documentation
• Providing immediate medical care and aid for large populations during times of war or disaster

Domestic and international travel nurses also have different characteristics specific to their roles.

Domestic Travel Nurses

• Work within the U.S.
• Typically work assignments that range from eight to thirteen weeks
• Can respond to areas of the U.S that experience natural disasters or disease outbreaks

International Travel Nurses

International travel nurses should have excellent communication skills, should be open to new experiences and challenges, and should have a strong desire to learn. These nurses are responsible for performing a wide array of duties. As stated previously, the tasks an international nurse will have to perform depend entirely upon their medical specialty. Some of the more general or everyday tasks that international travel nurses will perform include administering medication, wound care, and providing emergency medical services and care. Since there are often nursing shortages in many of the regions that international nurses travel to, another general role of these nurses is to educate family members and caretakers about the appropriate patient and medical care. In summary, international travel nurses:

• Work outside the U.S.
• Typically work assignments that range from one to two years
• Respond to areas that experience natural disasters or disease outbreaks, such as the Ebola outbreak in West Africa
• Provide medical care and aid to underserved, rural , and remote populations
• Usually, must wait for document processing before traveling

Travel Nurse Working Conditions

As with any career, there are positive and negative aspects to working as a travel nurse. Nurses can suffer from stress as they may carry a heavy patient load and have many critical decisions to make. Additionally, travel nurses may suffer from feelings of isolation since they tend to relocate often. Having a strong sense of independence and a support system available, even remotely, can help.

Additionally, nurses may work in high-risk areas that may expose them to workplace violence, blood-borne pathogens, and chemicals. Travel nurses must always familiarize themselves with and adhere to safety standards set by the organization.

International travel nurses can face different challenges. Travel nurses must be familiar with the country's laws, and geographic-specific diseases, and always keep their overall safety as a priority.

Despite these considerations, travel nursing can be immensely rewarding. Many organizations and staff nurses appreciate the help travel nurses offer. Travel nurses help relieve staff nurses from burnout, as can happen when working short-staffed.

International travel nurses are also highly appreciated. They provide medical care and assistance to many patients in remote settings who otherwise would have no access to healthcare. They help with relief efforts in war zones or after disaster events, which can be both rewarding and enriching.

According to the American Nurses Association, as of 2015 fourteen states had mandatory nurse-patient ratios . Nurses are pushing for federal legislation supporting safe staffing and because of this, if more states pass safe-staffing laws, nurses will be in even more demand. Travel nurses will help mend the current and projected nursing shortage. The Bureau of Labor Statistics projects a 16% overall growth for nurses until 2024, which is much faster-than-average growth for all occupations.

RELATED :  RN License Transfer and NLC Guide

Travel nursing has many incentives for nurses regarding pay and benefits including:

• Travel reimbursement
• Free housing
• Medical, dental, and vision coverage
• Retirement plans
• Assistance in obtaining passports/work visas
• Choice of location
• Selection of hours/shifts worked
• Competitive pay
• Higher-than-average pay for RNs

According to Indeed, the average yearly salary for a travel nurse is $75,109. However, since pay is competitive in travel nursing, some companies are offering salaries of around $100,00 annually for domestic travel nurses.

International travel nurses tend to have lower salaries than domestic, except for assignments in some middle eastern countries. This is because, for the most part, nurses tend to make less outside of the U.S.

Salary is dependent on the agency, and nurses should research each company to find the right salary and benefits that best fit their needs.

• International Council of Nurses
• Professional Association of Nurse Travelers
• National Association of Travel Healthcare Organizations
• American Travel Health Nurses Association

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• The Hottest Job During a Pandemic? Travel Nurse
• Is Travel Nursing the Right Adventure for You?
• An Ocean-Lover's Dream: Working as a Nurse at Sea
• 10 Pros and Cons of Becoming a Travel Nurse
• 5 Specializations For Nurses Who Enjoy Travel
• Tips on Maintaining a Healthy Diet as a Traveling Nurse
• See all Nursing Articles

Travel Nurse Rules for Residency: What You Need To Know

January 5, 2023

Fusion Medical Staffing

We'll help equip you with all the information that you need to make informed decisions about your prospective job and the travel nurse pay package that comes with it.

Travel nurse residency rules

What are travel nurse housing stipends, tax homes for travel nurses, how long can a travel nurse stay in one place, what is the travel nursing 12-month rule, what is the 50-mile rule for travel nursing, are there state residency rules for travel nurses.

Before we get into what you're going to need to qualify for tax-free stipends on your travel nursing contracts, keep in mind that we're a platform for healthcare professionals, not tax professionals.

These travel nursing tips are a good starting place, but you'll want to talk to a professional tax advisor before you file this tax season to make sure that they give you the tax advice and rules that makes most sense for your specific situation.

Travel nursing is a unique kind of career with plenty of benefits , but some unique challenges when it comes to work related expenses and how to pay taxes. These tax rules and how they affect your compensation packages may differ but pertain to the duration of stay in each place you travel, as well as the income tax implications that come with it.

The stipend payments that make up part of your compensation package are held to some specific rules about where and how long you can stay in a certain place as a travel nurse. We'll break it down for you.

A housing stipend is a tax-free stipend provided by a staffing agency to their travel nurses to cover the cost of housing while on assignment.

Related: Housing Stipend vs Agency-Provided Housing: What's Right for You?

This lets you choose where you want to live on assignment, maximizes the amount of money you'll take home by maintaining a low taxable income, and is one of the reasons that travel nursing comes with tax advantages, even for assignments with a more modest base pay.

As a travel nurse, your tax home impacts your financial situation. Understanding the tax home and housing requirements for travel nurses is essential to maintain your tax home status, which is how you qualify for receiving tax-free stipends on travel nursing assignments and contracts.

What is a tax home?

Your tax home is the primary location where you conduct your business and earn your income. It can also affect income taxes and your eligibility for travel nurse tax deductions.

If you don't have a tax home, there is no way to prove that you have a need to duplicate expenses, which is why a travel nurse is eligible for stipends.

Having a tax home doesn't mean you have to buy your own house , either, although there are plenty of ways for a travel nurse to quit paying rent and switch to a mortgage! Housing expenses are housing expenses, no matter who technically owns your house.

What are travel nursing rules for tax homes?

You need to meet two out of the three following items to prove that you have a tax home, even if you have a permanent residence:

• Do you ever live and/or work in the area of your permanent residence?
• Do you have travel and living expenses that must be duplicated when you are traveling for business and away from that home?
• Do you have any connection to the area, like family, friends, or other community ties?

You can also show your voter registration, pay state income taxes and federal income taxes with that address listed, a driver's license with the same address, if you have a car registered there, and having mortgage or rent payments at the same place.

Making sure that you're paying fair market value for this permanent primary residence is important, too. It's all about whether or not you are duplicating expenses.

The IRS tax rules for travel nurses say, "Any work assignment in excess of one year is considered indefinite," which disqualifies you from tax-free stipends.

The general rule of thumb is you can’t work in one place for more than 12 months in any given 24-month period. This is also referred to as the travel nurse one year rule, or 12-month rule.

You'll also want to make sure that no one place becomes the majority of your income, but that shouldn't be a problem if you keep moving to a new travel nursing position after your last one ends.

What happens if a travel nurse stays somewhere more than a year?

If a travel nurse stays in the same location for more than 52 weeks, their tax home will change to reflect that new area.

Don't try to get around this by trying out different facilities around the metro, either - the IRS can consider the same metropolitan area or an entire city your "tax home."

And if your taxable annual income is all coming from your tax home, you won't be eligible for tax-free stipends any longer.

Traveling healthcare professionals often hear that in order to keep receiving non taxed stipends, all they need to do is work 50 miles from their permanent tax home. That's not exactly true.

While it's a good guideline, there is no official 50-mile rule for travel nurses. The only thing the IRS guidelines for travel nurses cares about is that your travel nursing assignments far enough away that you need to "sleep or rest to meet the demands of your work while away from home."

Again, the tax-free basis depends on whether or not your travel expenses are duplicated.

50-mile rule travel nursing example

The biggest reason the 50-mile rule isn't always true when you're working with a travel nursing agency is that the difference in the size and population of a city, as well as its ease of transit, can greatly impact the time each of those miles takes to travel.

Imagine driving 50 miles away from your family home through the heart of South Dakota. Now imagine doing the same thing through Los Angeles. Although not ideal, a 50-mile commute in a more rural area could be doable, and you could possibly avoid most travel related expenses.

Is the 50-mile travel rule ever true?

Some specific cases do actually use a 50-mile rule to qualify for tax-free stipends, but these tax rules don't apply to travel nurses.

Some agencies and facilities may also have an internal 50-mile rule for ease of compliance and to mark a difference between travel nurses and per diem nurses.

There aren't specific rules regarding your travel nurse tax home status state by state, but you will need to make sure that you are paying state taxes correctly. Filing taxes as a travel nurse means that you need to pay attention to what income tax looks like in each separate state you're practicing in.

Travel nurse taxes aren't the easiest thing in the world to navigate, but you've got this! Make sure to talk to a tax professional before you start to pay taxes each year, keep your tax home/permanent residence within the guidelines, and you'll find that your compensation package gets a nice little boost when you receive a tax-free stipend or reimbursements and stipend.

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Understanding taxes as a travel nurse

It’s April, which means that tax season is upon us. If you’re like me, filing for taxes has been the last thing on your mind given the impact of the COVID-19 crisis , but fortunately, the IRS has pushed the deadline to file back to July 15. Hopefully this provides some much-needed breathing room for all of you who are focused on other priorities  at the moment. When you are ready to file, this post will offer some useful information, especially for those of you who are new to travel nursing.

Before I get to the advice, I want to note that while I’ll be going over travel nurse tax basics in this article, it’s important to include the disclaimer that I am not a tax professional (just a nurse!).This article is for general educational purposes only. For questions on your unique circumstances, I recommend you reach out to the IRS or a tax professional directly.

One of the most important concepts to familiarize yourself with as a traveler is a tax home. The IRS defines a tax home as “the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home.” For most people, their tax home and their permanent home are the same place, but travelers fall into a small category of people, like professional athletes and truck drivers, who earn money outside of their tax home.

As a travel nurse working outside of your tax home, you are eligible for tax-free stipends, in addition to the hourly wages you earn. It’s also worth really familiarizing yourself with the tax implications of working in a different state, as the wage component of the total compensation package will translate differently as take-home pay from one state to the next.

There are a few different scenarios that will determine where your tax home is, and this guide provides a comprehensive explanation of some of the most common cases. It’s important to note that you run the risk of the IRS considering a new tax home if you spend too much time in any one geographical location. So if you continue to renew a contract in another state, that could eventually become your tax home. To avoid this, a general rule of thumb, though not an explicit rule, is to avoid staying in any one tax region for more than 12 out of every 24 months while ensuring you’re maintaining (or re-assessing) your tax home.

You should also try to return to your permanent residence between contracts, or whenever possible. The IRS isn’t explicit about how much time they expect for you to spend in your permanent residence. Based on a previous ruling, around 30 days a year was found acceptable to maintain a permanent residence.

Tax Advantages 

There are a handful of important tax advantages to be aware of as a travel nurse, primarily in the form of stipends and reimbursements. Reimbursements are business-related expenses that you have paid for out-of-pocket that your employer pays you back for. This is typically done in the form of an expense report. You incur expenses, save all receipts, submit it to your employer, and the money you’re reimbursed is tax-free. Conversely, stipends are lump sums paid to you periodically in order to cover   expenses while on an assignment. For travelers, stipends are tax-free when they are used to cover duplicated expenses, such as lodging and meals, and do not have to be reported as taxable income.

Under the new 2018 tax laws, deductions or write-offs are no longer an option for travel nurses. This means travel nurses can no longer deduct travel-related expenses such as food, mileage, gas, and license fees, and the only way to recuperate this money is either through a stipend from your travel agency or in the form of reimbursements for expenses you actually incurred.

Audits & How To Handle Them

While the chances of any one person being audited are relatively low, it’s always important to be prepared. The best way to do this is to document everything (something that as a nurse, you’re probably already quite good at!). As a traveler, the most important thing to keep track of is proof that you are maintaining a permanent home and duplicating living expenses. Be sure to maintain documents for as many of the following things as possible:

• Mortgage or rent payments
• Gas, electric and cable bills
• Receipts for rental cars, flights, or public transportation to/from assignments
• Mileage logs to and from your assignments
• Copies of all your assignment contracts

To help make this easy, there are several apps and websites for organization in expenses and record keeping. A few that we recommend are Expensify , Genius Scan , Google Drive , and Turbo Tax .

One of the benefits of being a travel nurse is the ability to maximize your income . However, it’s really important to understand the tax implications and filing requirements that come along with it. It can be intimidating at first, but once you get the hang of it, taxes as a traveler can become almost second nature. That said, you should always consult an accountant or other tax professional, especially if it’s your first time filing your taxes as a traveler to be sure that you are doing everything correctly.

Sarah is the Founding Clinician at  Trusted Health , the career platform for the modern nurse. Sarah is a graduate of the University of Pennsylvania’s Nursing School and began her nursing career at UCSF Benioff Children’s Hospital. Prior to moving away from the bedside, she was a Clinical Nurse III and an Evidence Based Practice Fellow, and served on multiple hospital-wide committee boards. At Trusted, she utilizes her clinical insight and passion for innovation to change how nurses manage their careers and solve for inefficiencies within healthcare staffing.

You can connect with Sarah on  Instagram ,  LinkedIn , and  Twitter .

The views and opinions expressed by My Nurse Influencer contributors are those of the author and do not necessarily reflect the opinions or recommendations of the American Nurses Association, the Editorial Advisory Board members, or the Publisher, Editors and staff of American Nurse Journal . These are opinion pieces and are not peer reviewed.

2 Comments .

First year as a traveler and was consented about the stipend. Thank you and I will have my taxes done by an accountant.

Thanks Sarah this was really beneficial to me as a first time traveler

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• What Do Travel Nurses Do?

Where Do Travel Nurses Work?

A day in the life of a travel nurse, pros and cons of being a travel nurse, is travel nursing right for you.

Becoming a travel nurse can be an exciting opportunity to not only experience new places around the country but also network and build lasting connections with healthcare professionals. But if you're considering starting traveling, you may be wondering, what do travel nurses do? 

This article will take you through the responsibilities of a travel nurse, including the day-to-day duties, where you can work, and the pros and cons of the job. Keep reading to determine whether this fast-paced, exciting, and adventurous career is right for you.

>> Click here to see available high-paying travel nurse opportunities!

What Do Travel Nurses Do? 

The specific duties of a travel nurse will vary depending on the unit and department you work. For example, the expectations of an intensive care unit (ICU) nurse will vary greatly compared to those of an obstetrics (OB) nurse or an operating room (OR) nurse. In this section, we'll discuss what travel nurses do, their duties, and their responsibilities.

>> Related: How to Become a Travel Nurse

Bedside Responsibilities

Travel nurses are responsible for taking care of patients from triage to discharge. Typically responsibilities may include, 

• Administer medications and monitor for adverse reactions
• Assist patients with activities of daily living (ADLs), including ambulation, feeding, dressing, and bathing
• Insert and manage IV catheters
• Perform vital signs at required intervals and recognize abnormalities and report to appropriate healthcare providers
• Perform physical assessments and recognize signs
• Prepare patients for bedside procedures and surgeries

A large portion of a travel nurse’s responsibilities include education. Specifically, travel nurses will need to provide education to the patient, if applicable, as well as to family and caregivers throughout their shifts. 

Time spent educating patients and families will vary depending on your specific unit. For example, a travel nurse that works in a post-anesthesia care unit (PACU) and is discharging patients after surgery will be required to spend more time on education than other typical bedside duties. 

On the other hand, an ICU nurse will spend far less time focused on education because of the severity of their patient’s illness and disease. 

Travel nurses also may be responsible for educating new nurses and orientees. While rare, it is possible for a travel nurse to be asked to work with new nurses.

Patient Advocacy

While not the most obvious job responsibility, advocating for a patient is an important job duty of a travel nurse. This can range from speaking to healthcare providers to advocating for tests or new medications. It also can mean speaking to family members about the wants and needs of the patient. 

Travel nurses can work in a variety of locations. Essentially, they can work anywhere that a staff nurse may work. However, not all healthcare settings will have a need for travel nurses. Some of the locations travel nurses work in include, 

• Home health
• Long-term care facility
• Government agency
• Private MD office
• Urgent care
• Specialty clinic
• Surgical center

Travel nurse days might look a little different than a staff nurse because they can be the first to be floated to another unit, depending on their contract. So, travel nurses will generally report to the floor they are contracted but may have to work their shift on another unit or even another hospital (depending on their specific contract).

1. Get Their Assignments

Most travel nurses will start their shifts either at 7 am or 7 pm. After getting an assignment, the first task is to get a report on your patients. This typically takes about 30 minutes but may take longer, depending on the unit and the patients! 

2. Looking Through the EMR

After the report, travel nurses will spend a little bit of time looking through the EMR to go over orders and medications, including times they are due, and to find any missing information that was not communicated during the report. 

3. Performing Physical Assessments

The rest of the morning generally consists of performing physical assessments on your patients, vital signs, assisting in ADLs, and administering medications. 

Healthcare providers typically round in the morning so it is important to try and touch base with the medical team to learn the plan of care for the patient for the day and any changes to the orders and/or medications. 

The rest of the day is similar to the morning/evening but maybe a little less hectic. There are more vital signs, reassessment of your patients, admissions and discharges (depending on the unit), and road trips for MRI or CT scans. 

While this is a brief idea of what a typical day might look like for a travel nurse, it will vary greatly depending on your specialty and work location. 

Being a travel nurse may sound like a great opportunity: You get to travel the country, earn a higher wage, and experience new cultures. But like every job, there are pros, and there are cons as well. 

Travel Nursing Pros

• Higher compensation
• New locations
• Meeting new people
• Expand your skillset
• Adaptability 
• Flexibility between contracts
• Choice of contracts and location

>> Related: Travel Nurse Salary Guide

Travel Nursing Cons

• Always the new person
• First to float, first to cancel
• Relocating every 13 weeks 
• New computer modules for each assignment
• Lack of local support system
• Managing multiple nursing licenses
• Finding temporary travel nurse housing

Travel nurse requirements are the same as a staff nurse, except most travel nurse jobs require 1-2 years of experience and prefer a BSN degree over an ADN. Not meeting these standards can make finding travel nursing jobs in desirable locations more difficult and may dampen your experience.

Another reason travel nursing may or may not be right for you is variety. As a travel nurse, no two assignments will look the same. So, it may not suit you if you prefer stability and routine.

Kathleen Gaines (nee Colduvell) is a nationally published writer turned Pediatric ICU nurse from Philadelphia with over 13 years of ICU experience. She has an extensive ICU background having formerly worked in the CICU and NICU at several major hospitals in the Philadelphia region. After earning her MSN in Education from Loyola University of New Orleans, she currently also teaches for several prominent Universities making sure the next generation is ready for the bedside. As a certified breastfeeding counselor and trauma certified nurse, she is always ready for the next nursing challenge.

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Answers to the Most Asked Travel Nurse Tax Questions

• June 14, 2022

Navigating taxes can be slightly different for travel nurses compared to traditional nursing staff. In the travel nursing industry, travelers are paid differently than staff nurses because they receive both a taxed base hourly pay and additional “payments” that are non-taxed to make up their “total” pay. When you agree to commit to a travel nurse position, you’ll receive a pay package, which will detail all of the different aspects of what will make up your actual compensation.

To ensure you receive the most out of travel nursing and combat a combination of anxiety, confusion, and any lack of resources, we’ll cover a few tax topics to answer the questions you may have below. Taxes are tricky enough to maneuver through, especially travel nurse state taxes , so we’re here to make it easier. If you still have questions about where to start, remember that you can always talk to a tax professional.

Tax Homes vs. Permanent Homes

They say home is where the heart is, but the IRS needs a little more than that. To benefit from tax-free income from your travel nurse assignments , you must establish a tax home, which usually differs from your permanent residence. For most people, their tax home and permanent home are the same places, but travel nurses fall into a small category, like professional athletes and truck drivers, who earn money outside their homes.

A general rule for travel nurses is not to stay at one travel nurse assignment for more than 12 months to maintain eligibility for tax-free stipends. To ensure you qualify for a tax home in the eyes of the IRS:

• Keep proof of any payments you make to show that someone else maintains your primary residence. (I.e., receipts for a house sitter, mortgage, rent, utilities, or home maintenance expenses).
• Maintain your driver’s license and voter registration in your home state.
• Keep your car registered in your home state.
• Return to your permanent home between every contract.
• File a Residence Tax Return with your home state.

Tax Advantages

There are a handful of significant tax advantages to be aware of as a travel nurse, primarily stipends and reimbursements.

Reimbursements are business-related expenses that you have paid for out-of-pocket that your employer pays you back for. You incur expenses, save all receipts, submit them to your employer, and the money you’re reimbursed is tax-free. This is typically done in the form of an expense report. Conversely, stipends are fixed amounts of money (lump sums) paid periodically to cover expenses. For travel nurses, stipends are tax-free when they are used to cover duplicated costs. They do not have to be reported as taxable income if you can prove this duplication of living expenses.

Under the new 2018 tax laws, travel nurse tax deductions or write-offs are no longer an option. This means travel nurses can no longer deduct travel-related expenses—food, mileage, gas, and license fees—and the only way to recover these funds is either through a stipend from your travel nurse agency or in the form of reimbursements for expenses you actually sustained.

While the chances of any one person being audited are relatively low, it’s always important to be prepared and have documentation for everything. In travel nursing, it is essential to keep a paper trail of permanent home maintenance and duplicating living expenses—documentation is everything. If you claim shared expenses, always have proof of the gas, electric, cable bills, etc., under your name.

As a travel nurse, you may be more at risk for an audit if you display high expenses and low income. For instance, if your mortgage is $10,000 a month, but your overall income with your base pay as a travel nurse is only $20,000 annually, the IRS may have a few questions about how you’re actually affording your lifestyle. To get through or avoid an audit altogether, find a certified tax professional familiar with traveling healthcare professionals and do not solely rely on your travel nurse advocate or travel nursing agency for tax advice.

One of the benefits of being a travel nurse is maximizing your income. It can be intimidating at first, but travel nurse taxes can almost become second nature once you get the hang of it. If you have more questions about the travel nursing industry, take a look at our blog . If you’re ready to begin your journey check out our job board for the latest travel nurse jobs !

From a Staff Nurse to Travel Nurse: Everything You Need to Know to Expand Your Career

Travel nursing has been an in-demand career for years now, but the pandemic pushed demand for travel nurses to an all-time high.  If you’re considering making the move to travel nursing, you’re bound to have certain questions. How does travel

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5 Tips On How To Make Your First Assignment As A Travel Nurse Easier

Getting ready for your first assignment as a travel nurse? Congratulations! It’s an exciting time in your career and travel nursing will open up so many doors for you. If you’re already packed, have your housing situation settled, and have

Travel Nursing Pay – The 50 Mile Myth for Tax Free Stipends

The “50 Mile Rule” is one of the most common fallacies pertaining to tax-free reimbursements for travel nurses. It’s prominent among both travel nurses and travel nursing recruiters . Purveyors of this “rule” claim that it allows travel nurses to accept tax-free reimbursements as long as the travel assignment is 50 miles or more from the travel nurse’s tax home. This is incorrect. The IRS makes no such determination. In this article, we’ll thoroughly review this topic so travel nurses can approach it with confidence.

What does the IRS say about the “50 Mile Rule”?

IRS Publication 463 states that you can accept tax-free reimbursements if “you need to sleep or rest to meet the demands of your work while away from home.” The IRS does not define a specific distance that would constitute your need to sleep or rest.

Find your next travel healthcare job on BluePipes!

Can Travel Nurses Accept Tax-Free Reimbursements Without Incurring Expenses?

Moreover, the IRS requires that you actually incur expenses in order to accept tax-free reimbursements for those expenses. Therefore, the scenario where a travel nurse drives 100+ miles to work a shift and then drives home without incurring expenses for lodging does not qualify for a tax-free lodging reimbursement.

How do Travel Nurses Qualify for Tax-Free Reimbursements?

We covered how travel nurses qualify for tax-free reimbursements in our extensive 4-part series of articles on this topic. We encourage you to review those articles by selecting this link .

In this article, we want to stay focused on the “50-mile rule.” Specifically, we want to thoroughly debunk all the arguments that commonly support this myth. These arguments can be convincing and we want you to be confident in rejecting them so you don’t fall pray.

Where Does the 50-Mile Rule Come From?

So, where does the 50-mile rule come from? Joseph Smith, a tax consultant specializing in taxes for mobile professionals, provided 3 possible origins .

First, some states have a 50-mile rule for state legislators to qualify for the tax-free reimbursements the states pay to legislators while conducting state business. Obviously, travel nurses are not state legislators and states don’t pay travel nurses. Therefore, these rules do not apply.

The ultimate travel nursing pay calculator.

Second, the IRS requires that a taxpayer’s new commute to a new workplace be more than 50 miles farther than their old commute in order for the taxpayer to write off expenses related to moving for work. This rule does not apply to the lodging and meal reimbursements that travel nurses receive. Therefore, it does not apply to travel nurses.

Third, many travel nursing companies utilize their own 50-mile rules as an internal policy to help them determine if a travel nurse qualifies for tax-free reimbursements. As a result, many in the industry have come to conflate these internal rules with IRS rules.

Why do travel nursing companies have such a rule?

You might be wondering why agencies maintain such rules. First, such rules serve as potential safeguards in case the IRS audits an agency. While the IRS does not officially recognize such a rule, consistently enforcing such a rule does, nonetheless, give the impression that an agency is attempting to ensure compliance with the spirit of IRS regulations. Whether or not the IRS views it favorably in an audit is another story.

Second, some agencies prefer to maintain one concrete rule to demarcate between  PRN, local contracts, and travel nursing contracts . This is because different hospitals have different rules for how nurses qualify for the hospitals’ PRN, local contracts, and travel contracts. Therefore, it’s more efficient for the agency to have one rule that meets the requirements of all the facilities they work with than it is to check the requirements of each facility every time they submit a candidate for a job.

Some Hospitals Have 50-mile Rules

Another reason that the myth of the 50-mile rule persists is that many hospitals have their own distance rules for travel nurses. I’ve seen hospitals with distance requirements of 50, 75, and 100 miles for travel nurses.

Why hospital admin wants them

Hospitals enforce such policies for several reasons. First, this is a cost issue for hospitals. PRN bill rates are almost always lower than bill rates for travel nursing jobs . Sometimes, that difference is enough to cover the cost of housing and travel, so it can be significant.

Create your free Travel Healthcare Resume on BluePipes!

In addition, hospitals do not guarantee PRN shifts. However, they often must guarantee shifts for travel nursing jobs . Therefore, PRN shifts give the hospital flexibility to cancel shifts which can also save them money.

A hospital will typically try to fill its staffing needs at the lowest possible cost. Therefore, they prefer anyone within a 50-, 75-, or 100-mile radius to sign up for PRN shifts.

Why hospital staff wants them

Second, the hospital’s staff also has a stake in ensuring that travel nurses are not actually local. And, hospitals have a vested interest in keeping their staffs happy.

The issue is that travel nurses often have guaranteed hours. Moreover, travel nursing contracts are typically for 13 weeks.

As a result, if a hospital needs to cancel a shift, then they may call off staff members before calling off a travel nurse. This doesn’t happen very often, but it can and does happen. That’s because the hospital might have to pay the travel nurse even if they call them off.

Free eBook: How To Negotiate Travel Nursing Pay

Therefore, it’s in the best interest of the staff to have local health care professionals signed up for more flexible PRN shifts. That way, the PRN worker would get called off before the permanent staff worker.

No matter the reason that the 50-mile myth exists, or the explanation given to justify it, it’s important that you not put any faith in to it. Again, at its worst, purveyors claim the myth allows travel nurses to accept tax-free stipends as long as the travel nurse’s tax home is more than 50 miles from the facility. This claim can get people into a lot of trouble. To learn how to  legitimately qualify for tax free money as a travel nurse see our series on the subject .

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• Travel Nursing Pay – Qualifying for Tax-Free Stipends and Tax Deductions: Part 2: Maintaining Temporary Status In our previous blog post we laid out the criteria under...
• Travel Nursing Pay – Qualifying for Tax-Free Stipends: Part 3: The 3 Factor Threshold Test Now that we have made the distinction between indefinite work...
• 6 Things Travel Nurses Should Know About GSA Rates Understandably, there is a lot of confusion about GSA rates...

So, it would appear that the article has been corrected and now cites the correct tax rules. However, I would like to point out there seems to be a lot of anger directed toward nurses in this post. Have any of you bothered to look at who wrote the article? If you had you would notice that it was not written by a nurse. Now I could take the same low road that many appear to be taking here and make assumptions related to intelligence, and ability to read, but I’m not going to. I would like to point out the person who wrote this article is not a nurse. Click on the authors profile…I wouldn’t want you to take the word of a nurse given your apparent disdain for us. To the nurses who responded before me…please don’t allow yourself to be provoked and respond nasty comments with nasty comments…you are representing our profession and have done nothing here to help us prove our professionalism. I’m not saying “take crap”, I’m just saying either announce yourself as a nurse and act professional, or leave off the credentials and then sling mud. We all lose our composure, but I ask that you represent our profession with dignity in the eyes of the public. Anything less will not help us gain the respect and recognition we truly deserve. To the CPA slinging insults above, I’m going to assume that you can read and just didn’t take the time to look at the credentials of the author of this article (who is not a nurse). You have certainly done little here to promote your profession. It is unfortunate that the person who typed this article hit a couple of wrong keys and referenced the wrong IRS publication which appears to have been corrected. Your message however, remains as written, and certainly does not promote your profession favorably. I think I’ll stick to doing my own taxes thank you, as I prefer to trust my finances to someone who reads things thoroughly before rushing forward with insults, and as it would appear, either their own miskeyed entry or mistaken. To the author of the article, thank you for taking the time to write it. I enjoyed the read! Very informative and just the information I was looking for. Now…I have spent way more time here than I planned…I have much to do, and very little of it might I point out, is peeling bandaids. That, by the way, is not taught in nursing school.

Sorry but you’re wrong. IRS publication 455 states “The distance test: Your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job location must be at least 50 miles from your old home. ”

This is why nurses should stick to peeling band-aid wrappers for doctors and emptying bed pans (the maids of hospitals)….. Pay for an accountant people.

You are sorely mistaken. IRS publication 455 relates only to Moving Expenses. Travel nurses are not “Moving”. They are working away from their tax homes temporarily. Publication 455 does not pertain to their circumstances. Publication 463 is the pertinent document for them.

This is why you should stick with Accountants who specialize in taxes for travel professionals like the folks at traveltax.com. Otherwise, you may find yourself with a CPA who seemingly got their credentials out of a Cracker Jack Box like this fool.

Nice comment back!!!!

Seems like you don’t think very highly of nurses. Hope you never get sick and end up in a hospital. You will soon find that nurses do much more and you rarely see doctors. Show more respect for nurses.

CPA – (Idiot),

FYI – Most Nurses have bachelors degrees In science which has been recently claimed as the toughest degree to get by Guinness World Book of record. Most hospitals require a bachelor’s degree to be hired in their hospital. therefore your associate’s degree in accounting and your CPA certificate doesn’t mean a whole lot. Anybody can read an IRS publication and follow the directions. Try putting in a NG Tube , IV or working a code to save life of some ungrateful asshole like yourself.

HOSPITAL MAID with a BSN.

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Can You Do Local Travel Nursing? | Pros & Cons

One of the most common myths about travel nursing is you have to travel across the country, or even work out of state. You may have heard your travel position has to be at least 50 miles away from your permanent residence in order to collect the tax-free stipends of a travel nurse.

Click here for high-paying travel nursing assignments near you!

But this is one of the most common myths about travel nursing. The IRS does not have a specific ‘50-mile rule’ describing a certain distance you have to work away from home. This 50-mile or 100-mile radius is used by many hospital facilities as a general rule of thumb, to prevent their own full-time staff nurses from picking up the contracts themselves.

So, that being said, you can do local travel nursing without spending a small fortune on flight costs, additional housing, or traveling across state lines. For more specifics on the actual tax deductions you can claim while working local contracts, check out our travel nurse tax guide and consult with a tax professional who can give you the most accurate information for the laws in your specific state.

How To Be A Local Travel Nurse

I first learned about local contract nursing from a nurse I use to work with. She explained to me she actually worked at another hospital across the city, and she was under a short-term contract with our hospital for 3 months as a float nurse.

She ended up getting an extension as well, so she was actually there for a total of 6 months while working her other “local” healthcare job at the same time. She did this to save up for her wedding and was actually able to pay for the whole thing in cash.

She managed this by making sure her scheduled shifts didn’t conflict with each other and allowed for time to eat and sleep in between. She also rented a small apartment on the other side of the city to stay in while she worked her three, 12-hour shift days at that hospital.

Travel benefits include free housing, travel reimbursement, and a sign-on bonus.  Get started now.

When those three days were through, she would drive a few hours home and work her normal job.

If you’re wondering whether local travel nursing could work for you, here are some of the pros and cons of taking a travel nursing assignment in your home state.

Pros of local travel nursing

• Limited travel costs
• You’ll likely receive perks including a housing stipend which means more money in your pocket per shift
• It’s possible to still keep your day job while making extra money
• No messing with tons of luggage or furniture
• Home is still accessible through a short drive
• You’ll be more familiar with the area, making it easier to find a nice hotel or apartment
• You’ll never have to miss a family function (but you’ll still have a good excuse if you don’t want to go)
• Feelings of homesickness can be quickly remedied
• You’ll still have the security of friends and family being close to you

Cons of local travel nursing

• You don’t get to travel far to see other parts of the country, like California , Alaska , or New York .
• Drastically narrows your opportunity of getting a travel contract
• You lose the ability to work with different patient populations
• You’re basically working a job but with a longer commute and temporarily living in two locations
• You still need to set up housing
• You lose the true experience of life as a travel nurse

A lot of first-time travelers would prefer to try something close to home, in order to “test the waters” and see if they actually enjoy it. When you do, you’ll find out what is important for you, and decide why you want to be a travel nurse. Is it for the experience of being out on your own, forced to make new friends and keep yourself entertained?  Or is it more for the money, education, and career advancement?

Whatever your nursing career goals, travel nursing, whether local or across the country, can help you reach them.

Find your dream travel assignment here.

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