{"id":5410,"date":"2024-08-12T14:00:38","date_gmt":"2024-08-12T14:00:38","guid":{"rendered":"https:\/\/www.vivian.com\/community\/?p=5410"},"modified":"2024-09-13T19:48:58","modified_gmt":"2024-09-13T19:48:58","slug":"travel-nurse-residency-rules","status":"publish","type":"post","link":"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/","title":{"rendered":"Understanding Travel Nurse Residency Rules"},"content":{"rendered":"<h6 id=\"back-to-top\"><span style=\"font-weight: 300;\">Travel nursing isn\u2019t just about exploring new locations while earning an often-lucrative paycheck. It\u2019s also a great opportunity to gain new experiences in different work settings around the nation. However, all this travel requires planning and a solid understanding of travel nurse residency rules.\u00a0<\/span><\/h6>\n<p><span style=\"font-weight: 400;\">Having a permanent place that you call home between assignments offers stability, comfort and a sense of belonging. It\u2019s also tied to important financial considerations, primarily taxes. Before you hit the road on your first (or next) <a href=\"https:\/\/www.vivian.com\/nursing\/travel\/\">travel nursing contract<\/a>, consider how where you live and work impacts your residency status.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #3c3b3d;color:#3c3b3d\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #3c3b3d;color:#3c3b3d\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#why_establishing_residency_as_a_travel_nurse_is_important\" >Why Establishing Residency as a Travel Nurse Is Important<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#travel_nurse_compensation_and_residency\" >Travel Nurse Compensation and Residency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#what_is_a_travel_nurse_tax_home\" >What Is a Travel Nurse Tax Home?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#travel_nurse_residency_rules_for_tax_homes\" >Travel Nurse Residency Rules for Tax Homes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#how_do_you_declare_a_tax_home\" >How Do You Declare a Tax Home?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#residency_and_tax-free_travel_nursing_stipends\" >Residency and Tax-Free Travel Nursing Stipends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#do_you_need_to_keep_receipts_when_working_away_from_your_tax_home\" >Do You Need to Keep Receipts When Working Away from Your Tax Home?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#do_travel_nurses_need_a_permanent_residence\" >Do Travel Nurses Need a Permanent Residence?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#advantages_of_declaring_a_tax_home\" >Advantages of Declaring a Tax Home<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#travel_nurse_residency_and_state_taxes\" >Travel Nurse Residency and State Taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-residency-rules\/#lean_on_an_experienced_tax_professional\" >Lean on an Experienced Tax Professional<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"why_establishing_residency_as_a_travel_nurse_is_important\"><\/span><b>Why Establishing Residency as a Travel Nurse Is Important<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your legal residency status determines your permanent tax home, how much you owe in taxes and to whom. It also determines whether you qualify for tax-free stipends, which can significantly impact your overall compensation as a travel nurse. However, your permanent home also determines many other vital personal aspects, including where you obtain your driver\u2019s license and <\/span><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/voting-as-a-travel-nurse\/\"><span style=\"font-weight: 400;\">vote in elections<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also impacts you professionally, primarily regarding your <\/span><a href=\"https:\/\/www.vivian.com\/licensing\/\"><span style=\"font-weight: 400;\">professional nurse licensure<\/span><\/a><span style=\"font-weight: 400;\">. Your primary state of residence (PSOR) is your permanent tax home, and your PSOR determines whether you live in an Enhanced Nurse Licensure Compact (eNLC) state or a non-Compact state. Living in a Compact state means you may qualify for a multistate nursing license, which makes it much easier to take travel contracts without the expense of additional licensing in the 39 states that have fully or partially implemented the eNLC as of August 2024.<\/span><\/p>\n<p><b>RELATED: <\/b><a href=\"https:\/\/www.vivian.com\/community\/career-resources\/nurse-licensure-compact-states\/\"><b>What Are the Nurse Licensure Compact States?<\/b><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"travel_nurse_compensation_and_residency\"><\/span><b>Travel Nurse Compensation and Residency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Travel nurse compensation packages<\/span><span style=\"font-weight: 400;\"> can be complicated. In addition to a\u00a0<\/span><a href=\"https:\/\/www.vivian.com\/salary\/\"><span style=\"font-weight: 400;\">base nursing salary<\/span><\/a><span style=\"font-weight: 400;\">, they often include bonuses and stipends for housing, meals and incidental expenditures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How does that relate to your residency? The stipends are tax-free if your travel nursing contracts are outside your tax home and you duplicate expenses between your permanent home and a temporary home you keep while on assignment. Tax-free income potentially reduces your taxable income significantly, which means you could fall into a lower tax bracket and\/or pay less in taxes.<\/span><\/p>\n<p><b>RELATED: <\/b><a href=\"https:\/\/www.vivian.com\/community\/money-taxes\/travel-nurse-salaries-tips\/\"><b>Dollars and Sense: Travel Nurse Salaries Explained<\/b><\/a><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"what_is_a_travel_nurse_tax_home\"><\/span><b>What Is a Travel Nurse Tax Home?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-8501\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2022\/09\/2-Homes-for-Travel-Nurses-iStock-Resized-scaled-e1723476923956.jpg\" alt=\"Travel nurses have two homes \/ houses \/ housing locations\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">While establishing residency occurs on multiple levels \u2014 state, county and city \u2014 for your tax home, we mean city or sometimes metro area. That\u2019s because your tax home is usually the city or general area where you do most of your work, per Internal Revenue Service (IRS) rules. Most taxpayers primarily use tax homes to determine what activities count as business travel for deduction purposes. However, if you\u2019re a travel nurse, your\u00a0<\/span><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/what-is-a-travel-nursing-tax-home\/\"><span style=\"font-weight: 400;\">tax home<\/span><\/a><span style=\"font-weight: 400;\">\u00a0determines your eligibility for tax-free stipends.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As mentioned, your tax home is usually tied to the location of your job, so it doesn\u2019t necessarily have anything to do with where you live. For example, if a staff nurse lives in Lillian, Alabama, but works full-time in Pensacola, Florida, their tax home is Pensacola.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Things are a bit different for travel nurses because you may not have a regular place of business as you move around the nation for temporary work assignments. To account for this scenario, the IRS offers another way to determine a tax home called your \u201cabode in a real and substantial sense\u201d if you don\u2019t have a regular place of business. In other words, if you\u2019re a travel nurse, your tax home is likely where you live or your permanent residence\u2014circling back to the importance of establishing residency.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"travel_nurse_residency_rules_for_tax_homes\"><\/span><b>Travel Nurse Residency Rules for Tax Homes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you\u2019re considering using your residence as a travel nursing tax home, the IRS uses the following\u00a0<\/span><a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p463.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">three factors<\/span><\/a><span style=\"font-weight: 400;\">\u00a0to determine whether it qualifies:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You have duplicate living expenses:\u00a0<\/b><span style=\"font-weight: 400;\">You must pay housing expenses at your permanent tax home and another home you stay at during your travel nursing contract. These expenses must be reasonable based on fair market value. In other words, you can\u2019t claim your parents\u2019 house as a tax home if you aren\u2019t paying a fair amount for rent and utilities based on the local real estate market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You haven\u2019t abandoned your tax home:<\/b><span style=\"font-weight: 400;\">\u00a0To meet this requirement, you must frequently return to live at your main home in between contracts. You can also fulfill this factor if one or more family members live there.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You perform part of your work near your tax home:\u00a0<\/b><span style=\"font-weight: 400;\">Keep a per diem job and work a shift or two when you\u2019re home or take a contract near your home each year and live there for the duration.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you meet all three criteria, you can usually declare your permanent residence as a tax home without incident. You may still be able to claim it under certain circumstances if you only meet two of the three requirements, but if you meet only one criterion, the IRS considers you an itinerant worker without a tax home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re like many travel nurses, you\u2019ll fulfill the first two criteria but not the third. Usually, this happens when you only take contracts away from home. That doesn\u2019t mean your permanent residence won\u2019t qualify as a tax home. However, the IRS may scrutinize the first two qualifications more closely.<\/span><\/p>\n<p><b>RELATED: <\/b><a href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/\"><b>Understanding Travel Nursing Tax Rules<\/b><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"how_do_you_declare_a_tax_home\"><\/span><b>How Do You Declare a Tax Home?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You must complete and sign a declaration of your permanent tax home with your travel nursing agency before you start a contract. The process usually involves a single form. Signing the declaration enables the agency to structure your compensation package to include tax-free stipends.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"residency_and_tax-free_travel_nursing_stipends\"><\/span><b>Residency and Tax-Free Travel Nursing Stipends<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You only\u00a0<\/span><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/how-travel-nurse-housing-stipends-work\/\"><b>qualify for tax-free stipends<\/b><\/a><span style=\"font-weight: 400;\">\u00a0when your travel nursing contract takes you far enough away from your tax home that the distance requires an unreasonable commute and rest or sleep before returning to your permanent tax home. To meet this qualification, the contract must:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Require additional housing:\u00a0<\/b><span style=\"font-weight: 400;\">IRS rules state that your travel nursing contracts must be far enough from the \u201cgeneral area of your tax home\u201d to require separate\u00a0<\/span><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/travel-nurse-housing-sites\/\"><span style=\"font-weight: 600;\">housing arrangements<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Be a temporary assignment:<\/b><span style=\"font-weight: 400;\">\u00a0The IRS considers the assignment temporary if you expect it to last less than 12 months. If you realistically (or definitely) know the assignment will last longer than a year, it\u2019s typically not viewed as temporary. Keep this in mind when you know in advance that a facility will ask for multiple extensions on your contract.<\/span><\/li>\n<\/ul>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"do_you_need_to_keep_receipts_when_working_away_from_your_tax_home\"><\/span><b>Do You Need to Keep Receipts When Working Away from Your Tax Home?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-8502\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2022\/09\/Receipts-for-Duplicate-Expenses-iStock-Resized-scaled-e1723477624629.jpg\" alt=\"Travel nurse going through receipts of duplicate expenses\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Since tax-free stipends aren\u2019t deductions you claim on your taxes, you don\u2019t technically need to keep receipts for the housing expenses they reimburse. However, saving receipts is a smart way to protect yourself, and your employer may require them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sometimes, the IRS may audit a travel nurse staffing agency if it suspects the agency is inflating stipends to reduce its payroll taxes. The IRS caps tax-free stipends based on per diem reimbursement rates set for government employees by the United States General Service Administration (an independent agency that helps manage the basic functioning of federal agencies).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These per diem rates vary by location due to contractor-provided average daily rate data on the cost of local lodging. For example, if you need <\/span><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/how-to-find-the-best-travel-nurse-housing-in-new-york\/\"><span style=\"font-weight: 400;\">travel nurse housing in New York<\/span><\/a><span style=\"font-weight: 400;\"> for a temporary contract, you\u2019d likely get a larger stipend than you would in Omaha, where costs are much lower than in the Big Apple.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the IRS finds that your housing stipend is significantly higher than your actual expenses, you may need to pay income taxes on the excess amount. Receipts make it easier to prove your costs and minimize liability. Accurate financial records also help you prove that you\u2019re incurring housing expenses at your tax home and the location of a nursing contract. Either way, you\u2019re prepared to present your case if the IRS questions your tax-free stipends.<\/span><\/p>\n<p><b>RELATED: <\/b><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/how-travel-nurse-housing-stipends-work\/\"><b>How Travel Nurse Housing Stipends Work<\/b><\/a><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"do_travel_nurses_need_a_permanent_residence\"><\/span><b>Do Travel Nurses Need a Permanent Residence?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Travel nurses don\u2019t need a permanent residence, but there are advantages to having one. If you don\u2019t have a permanent residence or a primary place of work that qualifies as a tax home, you\u2019re an itinerant worker in the eyes of the IRS. In this scenario, your tax home is where you spend the most time working. Since you don\u2019t have a primary residence or duplicate housing expenses, you won\u2019t qualify for tax-free stipends\u2014a significant financial drawback.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Travel nursing agencies may structure your pay differently when you\u2019re itinerant. Any reimbursement for housing expenses gets taxed as income along with your base salary. Some agencies simply increase your base salary and eliminate stipends to simplify the filing process. Regardless, the increased taxable income will likely put you in a higher tax bracket, which means you might pay more in income taxes.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"advantages_of_declaring_a_tax_home\"><\/span><b>Advantages of Declaring a Tax Home<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6198\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2023\/01\/High-Paying-Jobs-Resized-scaled-e1723478252321.jpg\" alt=\"Top paying med-surg nursing jobs \/ piggy bank with money\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Income tax implications motivate many travel nursing professionals to declare a tax home. Using the <\/span><a href=\"https:\/\/www.irs.gov\/individuals\/tax-withholding-estimator\" rel=\"noopener\"><span style=\"font-weight: 400;\">IRS Tax Withholding Estimator<\/span><\/a><span style=\"font-weight: 400;\">, let\u2019s look at two simplified scenarios in which you filed as single without any dependents or additional deductions:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Scenario 1:\u00a0<\/b><span style=\"font-weight: 400;\">You declare a tax home and take a travel nursing contract with a $30,000 base salary and $15,000 in tax-free stipends. Because you don\u2019t include your stipends as income, you pay $1,619 in federal income taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Scenario 2:<\/b><span style=\"font-weight: 400;\">\u00a0You\u2019re an itinerant worker without a permanent residence\/tax home and take a travel nursing contract paying a $45,000 base salary. Since you don\u2019t qualify for tax-free stipends, you pay taxes on the entire amount, creating a tax liability of $3,419.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In both scenarios, your total income is $45,000. However, your taxes are cut in half when you qualify for tax-free stipends. Of course, this example doesn\u2019t account for real-life equations, including dependents, deductions, credits and additional income that change your tax liability. However, it gives you a general idea of how large the difference could be.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"travel_nurse_residency_and_state_taxes\"><\/span><b>Travel Nurse Residency and State Taxes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5411\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2022\/09\/Travel-nurse-residency-rules2-scaled-e1723478377869.jpg\" alt=\"Travel nurse residency rules\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">States levy state income taxes separately, but your residency still plays a role. Travel nurses pay state income taxes where they permanently reside if that state collects earned income taxes (as of August 2024, nine states didn\u2019t levy taxes on earned income\u2014Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on the work state&#8217;s residency rules, they might also owe taxes in each state where they worked throughout the year. <\/span><span style=\"font-weight: 400;\">State tax rules\u00a0<\/span><span style=\"font-weight: 400;\">can be complicated, so check the laws carefully to determine your filing requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, some states require you to file a return as a part-year resident if you worked there for more than 180 days of the year. To ensure you\u2019re not being taxed twice on the same income, you may qualify for a credit based on the taxes you paid to the work state on your home state tax return.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if your home state doesn\u2019t collect income taxes, you will likely owe taxes in the work state and vice versa. The only way to get out of paying state taxes is if both your home state and work state don\u2019t levy earned income taxes.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"lean_on_an_experienced_tax_professional\"><\/span><b>Lean on an Experienced Tax Professional<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As a travel nurse, your permanent and temporary residences can greatly impact your tax bill at the end of the year. Before accepting a travel contract, talk to a tax professional familiar with travel nurse taxes to determine the best course of action.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An experienced tax professional can make your tax filing easier. Consider\u00a0<\/span><a href=\"https:\/\/www.dpbolvw.net\/click-100964769-15493183\" rel=\"noopener\"><b>Intuit TurboTax<\/b><\/a><span style=\"font-weight: 400;\">, where you can choose self-service, assisted or full-service options, or\u00a0<\/span><a href=\"https:\/\/www.anrdoezrs.net\/click-100964769-15397046\" rel=\"noopener\"><b>Liberty Tax<\/b><\/a><span style=\"font-weight: 400;\">\u00a0for in-person, remote or online filing options. If you\u2019re comfortable filing your own taxes with a little guidance, consider\u00a0<\/span><a href=\"https:\/\/www.anrdoezrs.net\/click-100964769-15483180\" rel=\"noopener\"><b>FreeTax to E-File<\/b><\/a><span style=\"font-weight: 400;\">\u00a0quickly and easily.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Read our guide to\u00a0<\/span><a href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/\"><b>Understanding Travel Nursing Tax Rules<\/b><\/a><span style=\"font-weight: 400;\">\u00a0for some of the latest updates and changes to tax laws based on conversations with tax pros in the know. When you\u2019re ready to hit the road, check out Vivian\u2019s <\/span><a href=\"https:\/\/www.vivian.com\/nursing\/travel\/\"><span style=\"font-weight: 400;\">travel nursing jobs<\/span><\/a><span style=\"font-weight: 400;\"> to find the best opportunities in your desired location around the nation.<\/span><\/p>\n<p><b>Tax Disclaimer<\/b>: The information contained herein is general in nature and based on tax laws that are subject to change. Although some details came from a tax professional we spoke with for another tax-related post, the writer isn\u2019t a tax expert and can\u2019t guarantee the accuracy or completeness of any information contained in this post. This publication doesn\u2019t and isn\u2019t intended to provide tax, legal or accounting advice. Readers should always consult their personal tax advisors concerning the application of current and new tax laws pertaining to their specific situations.<\/p>\n<p><a style=\"background-color: #124e3b; color: #fdfeff; font-size: 20px; border-radius: 10px; padding: 15px; min-height: 30px; min-width: 120px;\" href=\"https:\/\/www.vivian.com\/browse-jobs\/landing\" target=\"_blank\" rel=\"noopener\">Browse Jobs<\/a><\/p>\n<p><small><em><b>Disclosure:<\/b> If you click on the included links, we may receive compensation.<\/em><\/small><br \/>\n<small><em>This post was originally published in September 2021 and updated in August 2024.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how travel nurse residency rules affect your compensation package and potential tax liability.<\/p>\n","protected":false},"author":17,"featured_media":8499,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,3,326,10],"tags":[290,294,75,90],"class_list":["post-5410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel-nursing","category-career-resources","category-money-taxes","category-nurse-life","tag-discipline","tag-employment","tag-rn","tag-travel"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2022\/09\/Permanent-Home-iStock-Resized-scaled-e1723472854161.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/posts\/5410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/comments?post=5410"}],"version-history":[{"count":0,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/posts\/5410\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/media\/8499"}],"wp:attachment":[{"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/media?parent=5410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/categories?post=5410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/tags?post=5410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}