{"id":616,"date":"2025-01-10T15:00:48","date_gmt":"2025-01-10T15:00:48","guid":{"rendered":"http:\/\/blog.nursefly.com\/?p=616"},"modified":"2025-01-10T22:55:55","modified_gmt":"2025-01-10T22:55:55","slug":"understanding-travel-nursing-tax-rules","status":"publish","type":"post","link":"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/","title":{"rendered":"2025 Update: Understanding 2024 Travel Nursing Tax Rules"},"content":{"rendered":"<p><a href=\"https:\/\/www.vivian.com\/community\/money-taxes\/travel-nurse-salaries-tips\/\"><span style=\"font-weight: 400;\">Making sense of travel nursing pay<\/span><\/a><span style=\"font-weight: 400;\"> and tax rules can feel like a tangled maze of unfamiliar terms and conflicting information. Tax homes, housing stipends, taxed\/untaxed wages, bonuses and per diem reimbursements are all factors that impact your <\/span><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/how-much-do-travel-nurses-make\/\"><span style=\"font-weight: 400;\">travel nursing pay<\/span><\/a><span style=\"font-weight: 400;\"> package and your federal and state taxes. Now that the 2024 tax season has ended and filing will soon begin, many travel nurses and other traveling healthcare professionals have questions. Vivian Health hopes to answer your tax questions with help from Brittany J. Benson, Esq., a lead tax research analyst in The Tax Institute at H&amp;R Block.<\/span><\/p>\n<h3 id=\"back-to-top\"><b>The Inside Scoop on Taxes for Travel Nurses &amp; Other HCPs<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Benson has nine years of tax experience and specializes in tax issues that affect individuals, international taxpayers and small business owners. She\u2019s also a licensed attorney in the state of Missouri. We asked her several questions that travel nurses and allied health professionals frequently ask regarding various aspects of travel taxes and provided her answers below.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 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-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_long_can_you_work_in_the_same_place\" >How Long Can You Work in the Same Place?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_are_stipends_tied_to_your_permanent_tax_home\" >How Are Stipends Tied to Your Permanent Tax Home?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#what_about_resetting_the_12-month_clock\" >What About Resetting the 12-Month Clock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_does_the_12_out_of_24_months_%e2%80%9crule%e2%80%9d_relate\" >How Does the 12 Out of 24 Months \u201cRule\u201d Relate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_does_the_irs_know_to_tax_a_travelers_stipend\" >How Does the IRS Know to Tax a Traveler\u2019s Stipend?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#will_breaking_the_12_out_of_24_rule_cause_travel_nurses_to_owe_back_taxes\" >Will Breaking the 12 Out of 24 Rule Cause Travel Nurses to Owe Back Taxes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#what_about_returning_3_years_consecutively\" >What About Returning 3 Years Consecutively?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#is_there_such_a_thing_as_a_50-mile_rule\" >Is There Such a Thing as a 50-Mile Rule?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#what_are_the_minimum_requirements_to_maintain_a_permanent_tax_home\" >What Are the Minimum Requirements to Maintain a Permanent Tax Home?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#whats_the_best_way_for_travelers_to_show_they_duplicate_expenses\" >What\u2019s the Best Way for Travelers to Show They Duplicate Expenses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_does_it_work_if_travel_nurses_dont_take_tax-free_stipends\" >How Does It Work If Travel Nurses Don\u2019t Take Tax-Free Stipends?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#are_travel_nurseshcps_being_double-taxed\" >Are Travel Nurses\/HCPs Being Double-Taxed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#can_a_travel_nurse_claim_expenses_on_their_taxes\" >Can a Travel Nurse Claim Expenses on Their Taxes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#what_information_and_documentation_does_a_tax_professional_need_from_a_travel_nurse_to_file_their_taxes_for_them\" >What Information and Documentation Does a Tax Professional Need from a Travel Nurse to File Their Taxes for Them?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#are_travel_nurses_audited_more_frequently\" >Are Travel Nurses Audited More Frequently?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_does_a_travel_nurse_file_taxes_if_theyre_away_from_home_when_they_need_to_file\" >How Does a Travel Nurse File Taxes if They&#8217;re Away from Home When They Need to File?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_do_travelers_know_which_states_they_must_file_taxes_in\" >How Do Travelers Know Which States They Must File Taxes In?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_does_it_work_if_a_traveler_lives_in_a_state_without_income_taxes_or_only_takes_contracts_in_states_without_income_taxes\" >How Does It Work If a Traveler Lives in a State Without Income Taxes or Only Takes Contracts in States Without Income Taxes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_should_you_handle_conflicting_information\" >How Should You Handle Conflicting Information?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#what_are_the_tax_advantages_and_disadvantages_of_being_a_traveling_healthcare_professional\" >What Are the Tax Advantages and Disadvantages of Being a Traveling Healthcare Professional?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#are_there_any_new_tax_rules_impacting_travel_nurses\" >Are There Any New Tax Rules Impacting Travel Nurses?<\/a><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"how_long_can_you_work_in_the_same_place\"><\/span><b>How Long Can You Work in the Same Place?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Vivian gets so many variations of this question every tax season and throughout the year. Travelers often get conflicting information about how long they can work in the same city, state or area without losing their tax-free stipends or risk owing taxes on untaxed stipends they weren\u2019t qualified to receive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cGenerally, for housing and meal stipends to be considered tax-free, the expenses must be incurred while you\u2019re away from your tax home for work,\u201d Benson explained. \u201cYou\u2019re only considered away from home if you must sleep or rest somewhere other than your home. So, a traveling nurse who has temporary housing for an assignment would be considered away from home. Whereas one who can commute from their current home may not be considered away from home.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAdditionally, the work assignment must also be temporary, which generally means that you expect the assignment to last less than 12 months. If you realistically expect to work in a location for more than one year, the assignment is typically not temporary, and those stipends may be considered taxable income. You should look at all the facts and circumstances of your situation before making a decision either way.\u201d<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_are_stipends_tied_to_your_permanent_tax_home\"><\/span><b>How Are Stipends Tied to Your Permanent Tax Home?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6530\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2023\/02\/Travel-Nurse-Housing-Stipends-Resized-scaled-e1736545706442.jpg\" alt=\"Travel nurse housing stipend - tax home\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAn important factor for the above points is where your tax home is,\u201d continued Benson. \u201cYou may think your tax home is your permanent home, but that may not always be the case. There is no bright-line rule for determining one\u2019s tax home or when it changes. Instead, the IRS uses a factor test to determine a person\u2019s tax home. It\u2019s generally the place where their main place of business or work is located.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you don\u2019t have a regular place of business, the following factors determine your tax home:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You perform part of your business where you keep your main home and use that home for lodging when you do business in this area.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You have living expenses that you duplicate between your main home and another residence because your business requires you to be away from home.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You haven\u2019t abandoned the area where your historical place of lodging and claimed main home is located, a family member lives at your main home, or you often use the home for lodging.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u201cIf you meet all three factors, then your tax home is where you regularly live and work,\u201d Benson said. \u201cOnly two factors satisfied means you may have a tax home depending on your circumstances. If you only meet one factor, you may be itinerant or have no tax home.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cA traveling nurse who has met the last two requirements could meet those requirements by duplicating living expenses and having a family member living at their home. Their tax home would be their main home and not where they\u2019re staying while on assignment.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To tie all this together, Benson provided an example of a traveler working on-site for 10 months at a location 4 hours from their apartment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cUnder these facts, you would likely be considered away from home since you\u2019re staying on-site four hours from your apartment. Your assignment is likely temporary because it\u2019s only 10 months. Finally, your tax home hasn\u2019t changed from your apartment because you have duplicate living expenses, and you kept your apartment where you historically live. Thus, your stipends would likely remain tax-free.\u201d<\/span><\/p>\n<p><b>RELATED: <\/b><a href=\"https:\/\/www.vivian.com\/community\/travel-nursing\/how-travel-nurse-housing-stipends-work\/\"><span style=\"font-weight: 400;\">How Travel Nurse Housing Stipends Work<\/span><\/a><br \/>\n<strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"what_about_resetting_the_12-month_clock\"><\/span><b>What About Resetting the 12-Month Clock?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7959\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2022\/12\/Resetting-the-clock-Resized-scaled-e1707778450676.jpg\" alt=\"Resetting the clock\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">A secondary question often tied to the tax home theme is if you can reset the 12-month clock. Many travelers hear that if they work 12 months for an employer and then take 30 days off, they\u2019ve reset the clock and can now work another 12 months at the same hospital or in the same city. According to Benson, if you knew you would return to the same hospital or location, you\u2019re not resetting the clock.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhether the stipend will still be tax-free depends on the expectation the healthcare provider has when they take on the work assignment and whether that expectation changes,\u201d said Benson. \u201cFor example, if the healthcare worker signs a contract for 12 months and they have no expectation that the contract will be extended, the stipend will be tax-free. If they have a reasonable expectation that the work assignment will last longer than 12 months, the stipend may be taxable as of the date the expectation changed.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here&#8217;s a breakdown of an example from Benson:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A traveling nurse signs a 12-month contract to work in Kansas City, Missouri, when they usually work and live in Memphis, Tennessee.<\/span><\/li>\n<\/ul>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The stipend will be tax-free if they have no reason to expect the contract to be extended beyond the 12-month period and their tax home hasn\u2019t changed.\u00a0<\/span><\/li>\n<\/ul>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the nurse takes some time off after the contract ends and later gets the contract extended, their tax home may change depending on all the facts. If there was no expectation that the contract would be extended, their tax home would likely not change.\u00a0<\/span><\/li>\n<\/ul>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If, on the other hand, the nurse expected and hoped the contract would be extended, their tax home may change, making their stipend taxable.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u201cAnother factor to look at is how many times this extension happens,\u201d added Benson. \u201cOne time may not necessarily change things, but repeatedly doing so would make a difference . . . The main point here is there isn\u2019t a bright-line test. You must look at all the facts and circumstances to determine if the taxability of the stipend changes.\u201d\u00a0<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_does_the_12_out_of_24_months_%e2%80%9crule%e2%80%9d_relate\"><\/span><b>How Does the 12 Out of 24 Months \u201cRule\u201d Relate?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7962\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Benson-Quote2.jpg\" alt=\"Benson Quote - 2024 Tax Blog\" width=\"800\" height=\"420\" srcset=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Benson-Quote2.jpg 1200w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Benson-Quote2-300x158.jpg 300w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Benson-Quote2-768x403.jpg 768w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Benson-Quote2-1024x538.jpg 1024w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Benson-Quote2-705x370.jpg 705w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Travel nurses and other healthcare providers often hear about a \u201c12 Out of 24 Months Rule\u201d that basically says you can\u2019t work in the same area for more than 12 months in any rolling 24-month period. In other words, if you work a year at one hospital, take a month off and then work another year, you\u2019ve exceeded 12 out of 24 months at the same location.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While this guideline is a good rule of thumb that many in the travel healthcare industry follow, Benson emphasized that this isn\u2019t technically an IRS rule.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAs mentioned earlier, there is no bright-line rule for when a tax home changes to a new work assignment area,\u201d she said. \u201cIf you spend more than 12 months in one area for work, your tax home may shift to that new location and expenses are no longer considered \u2018away from home\u2019 nor temporary.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHowever, your tax home can shift even if you don\u2019t work 12 months in an area, depending on your circumstances. For example, if you sell your main home and no longer have other ties to your tax home. If you spend 12 months in one location and only 4 weeks in your \u2018home,\u2019 your tax home may shift to your new location.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe IRS says your tax home is the entire city or general area where your main place of work is located regardless of where your home is located. You must take into consideration the amount of time you spend in each location for business purposes, the degree of business activity in each area and the significance of financial return in each area. The length of time you spend in each is the most important consideration.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Based on an example in which a traveling nurse spent 12 months in one location and returned home for only 4 weeks before returning to the same location for another 12 months, Benson said it would lean toward the work location being their tax home and not the area where their family is located. She cautioned that spending that much time in one location tends to look like you\u2019re no longer a temporary worker but rather a permanent one and disqualified from taking tax-free compensation for expenses.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_does_the_irs_know_to_tax_a_travelers_stipend\"><\/span><b>How Does the IRS Know to Tax a Traveler\u2019s Stipend?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A new question we\u2019ve seen recently is how the IRS knows when your stipends shouldn\u2019t have been tax-free. Let\u2019s say a traveler is a resident of California and has worked in another state for more than a year. Because they\u2019ve worked there for more than a year, how does the IRS know to tax their stipend? Is it automatic?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s not automatic,\u201d Benson said, \u201cthe IRS would need to manually review your returns to see information, including where you claim to have a tax home and where you file state returns. If the IRS determines you aren\u2019t maintaining your current tax home and your tax home has moved to a new location, you may be asked to provide more information and details, including the traveling nurse contract itself, residential leases and other substantiation such as records of housing and travel expenses. The IRS will review all the facts and circumstances to determine if you actually changed tax homes.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this example, she said the IRS may review the traveler\u2019s California returns over multiple tax years and their federal returns, including any excluded stipends or living expense stipends. Benson warned that if the IRS determines that you actually moved tax homes, part of or even the entire stipend may be taxable. Review the <\/span><b>\u201c<a href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#whats_the_best_way_for_travelers_to_show_they_duplicate_expenses\">What\u2019s the Best Way for Travelers to Show They Duplicate Expenses<\/a>\u201d<\/b><span style=\"font-weight: 400;\"> section below. <\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"will_breaking_the_12_out_of_24_rule_cause_travel_nurses_to_owe_back_taxes\"><\/span><b>Will Breaking the 12 Out of 24 Rule Cause Travel Nurses to Owe Back Taxes?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6121\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-filing-Resized-scaled-e1707780340809.jpg\" alt=\"Travel nursing tax rules\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As Benson pointed out, the 12 out of 24 rule doesn\u2019t officially exist. Instead, you must look at expectations to determine whether you might end up with a tax issue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhat\u2019s most important is the expectation of the traveler when the stipend is received,\u201d Benson explained. \u201cIf they reasonably expect and the assignment actually lasts less than 12 months, the stipend could be tax-free. If they find out the assignment will last more than 12 months, it may be considered indefinite, and stipends received after the expectation changes would be taxable.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSo, if they reasonably expect the assignment to last less than 12 months but find out in month five that they\u2019ll be extending the contract to 15 months, they will no longer receive tax-free treatment after month five (when the expectation changed). If the stipends should be included in taxable income because circumstances change and a traveler chooses not to include them, they\u2019ll likely face penalties and interest for not properly reporting their income.\u201d<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"what_about_returning_3_years_consecutively\"><\/span><b>What About Returning 3 Years Consecutively?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">As Benson described above, the IRS looks at how long a traveler spends in each location regardless of how long they spend in an area within a 24-month period or whether they return three years in a row. She explained that if a person spends nearly all of their time in their new work location, their tax home for tax purposes will likely shift to the new location regardless of where they maintain a permanent tax home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cEmployees who lack travel status may find their stipends taxable if their assignment is indefinite, i.e., expected to last or actually lasts more than one year. At the time of payment\u2014if the employee reasonably expects they\u2019ll return to the same area three years in a row, it\u2019s no longer considered a temporary assignment, and stipends may be taxable.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"is_there_such_a_thing_as_a_50-mile_rule\"><\/span><b>Is There Such a Thing as a 50-Mile Rule?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9059\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Tax-Free-Stipends-Quote.png\" alt=\"Tax Free Stipends Quote\" width=\"800\" height=\"420\" srcset=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Tax-Free-Stipends-Quote.png 1200w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Tax-Free-Stipends-Quote-300x158.png 300w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Tax-Free-Stipends-Quote-768x403.png 768w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/Tax-Free-Stipends-Quote-705x370.png 705w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Many travel nurses and allied health workers are told they automatically qualify for tax-free stipends if the assignment is at least 50 miles from their home. Like other \u201crules\u201d often touted as stemming from the IRS, the \u201c50-Mile Rule\u201d is another common myth within the travel healthcare industry not directly tied to an IRS tax rule.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Workers in other industries commute this distance to work daily, so it\u2019s possible a traveling nurse could commute 50 miles to and from work. However, that doesn\u2019t mean they wouldn\u2019t qualify for tax-free stipends at this distance, especially considering how taxing nursing is and the lengthy shifts they typically work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThere is no 50-mile rule for receiving tax-free stipends,\u201d said Benson. \u201cInstead, the requirement is that the distance you travel for work must be farther than a reasonable commute and requires rest or sleep before going back to your tax home. This amount of time is not definitive; it requires that an employee be away from their tax home for longer than an ordinary day\u2019s work, and sleep or rest is required to meet the demands of their work. The facts and circumstances of each taxpayer\u2019s situation can affect whether the \u2018overnight\u2019 rule is met.\u00a0\u201c<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"what_are_the_minimum_requirements_to_maintain_a_permanent_tax_home\"><\/span><b>What Are the Minimum Requirements to Maintain a Permanent Tax Home?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Since tax-free stipends are tied to whether a traveler properly maintains a permanent tax home, we covered the basics to fulfill this requirement. Many travel nurses work away from their permanent residence most of the year and only return home for a few weeks here and there. They may keep a <\/span><a href=\"https:\/\/www.vivian.com\/nursing\/per-diem\/\"><span style=\"font-weight: 400;\">per diem nursing job<\/span><\/a><span style=\"font-weight: 400;\"> and grab a shift or two while at home, but does this suffice if they earn most of their income and spend most of their time elsewhere?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAgain, no bright-line rules exist for these types of situations,\u201d Benson said. \u201cGenerally, the tax home is the entire city or metropolitan area where the main place of business is located. For example, travel to the same state, but different cities may not shift a tax home to the new work area if they\u2019re working in different cities\/metropolitan areas.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She pointed out that the factors for determining a tax home are:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Length of time normally spent in each location for business purposes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Degree of business activity in each area<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Relative significance of financial return in each area<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, Benson said the length of time is the most important factor. Review the section \u201c<\/span><b><a href=\"https:\/\/www.vivian.com\/community\/money-taxes\/understanding-travel-nursing-tax-rules\/#how_are_stipends_tied_to_your_permanent_tax_home\">How Are Stipends Tied to Your Permanent Tax Home?<\/a>\u201d<\/b><span style=\"font-weight: 400;\"> to understand the factors determining your tax home since you don\u2019t have a regular place of business.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"whats_the_best_way_for_travelers_to_show_they_duplicate_expenses\"><\/span><b>What\u2019s the Best Way for Travelers to Show They Duplicate Expenses?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">\u201cOne of the factors to determine a tax home if you don\u2019t have a regular place of business is that you must have living expenses at your main home that you duplicate because your business requires you to be away from home,\u201d explained Benson. \u201cTaxpayers don\u2019t have to prove they have duplicate living expenses at their home and place of work\u2014it\u2019s only important in determining whether they are \u2018away from home\u2019 for the purpose of their employer\u2019s accountable plan (i.e., whether they qualify for a stipend) purposes.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In other words, you don\u2019t have to prove you have duplicated expenses when filing taxes, but you may have to provide proof to your employer. Your employer may require you to substantiate your expenses by submitting a detailed expense report under a tax-free accountable plan. If you don\u2019t meet the rules, your stipend could be taxable. In some cases, you may also need these records for the IRS.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s important to note that excess stipends may need to be returned to the employer or can be taxable wages. For example, if your employer pays a stipend for rent and you only use part of the stipend for rent, the remainder may need to be returned or may be considered taxable income. The employer may require substantiation of your rent payments.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s always a good idea to keep records of things like utilities paid, rental or mortgage payments, maintenance expenses, etc., just in case an issue arises in the future. You don\u2019t have to submit these to the IRS but having them will ensure you can show you have duplicate expenses if you\u2019re audited.\u201d<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_does_it_work_if_travel_nurses_dont_take_tax-free_stipends\"><\/span><b>How Does It Work If Travel Nurses Don\u2019t Take Tax-Free Stipends?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Travel nurses and allied health professionals with a permanent tax home who aren\u2019t taking tax-free stipends often wonder if they\u2019re limited to the length of time they can spend in the same location. Benson reassured us that if a person only receives taxable W-2 wages for their <\/span><a href=\"https:\/\/www.vivian.com\/nursing\/travel\/\"><span style=\"font-weight: 400;\">travel nursing jobs<\/span><\/a><span style=\"font-weight: 400;\"> or other healthcare positions, their tax home is irrelevant for tax purposes.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"are_travel_nurseshcps_being_double-taxed\"><\/span><b>Are Travel Nurses\/HCPs Being Double-Taxed?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Many travel nurses and healthcare providers are concerned because they\u2019re paying state income taxes where they permanently live and in every state where they work throughout the year (unless one of these states doesn\u2019t collect state income taxes). Thus, the question of whether they\u2019re being double-taxed comes up frequently.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf the nurse resides in a state that imposes individual income taxes, they\u2019ll owe federal and state taxes on their wages,\u201d said Benson. \u201cWhether they\u2019ll owe taxes in the state they\u2019re working in depends on the state residency rules for the work assignment state.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFor example, some states will require individuals who live or work in the state for more than 180 days to file a return with that state as either a part-year or regular resident of the state. Depending on the states involved, the traveling nurse may qualify for a credit for taxes paid to the work state on their home state return. These credits are typically designed to make sure you aren\u2019t paying more in tax than your home state\u2019s tax rate.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"can_a_travel_nurse_claim_expenses_on_their_taxes\"><\/span><b>Can a Travel Nurse Claim Expenses on Their Taxes?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Claiming uncompensated expenses is temporarily a thing of the past.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cUnreimbursed employee expenses aren\u2019t allowed under the Tax Cuts and Jobs Act (TCJA) between 2018 and 2025. Employees receiving a stipend under an accountable plan through their employer (as described above) cannot deduct expenses that were reimbursed to them through stipends. Accountable plans can reimburse the employee for travel expenses, including airfare, lodging, mileage, laundry, and meal expenses. If the TCJA rule isn\u2019t extended, employee unreimbursed expenses may again be deductible after 2025.\u201d<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"what_information_and_documentation_does_a_tax_professional_need_from_a_travel_nurse_to_file_their_taxes_for_them\"><\/span><b>What Information and Documentation Does a Tax Professional Need from a Travel Nurse to File Their Taxes for Them?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Documentation and receipts can be another gray area where travel nurses get conflicting information on what to keep records of for tax-filing purposes. Ultimately, it\u2019s best to keep as many receipts and documents as possible to ensure you have absolutely everything you might ever need for filing and if you should ever have the unfortunate luck of being audited. Benson agrees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cTraveling nurses should keep excellent records of their expenses, including expenses they incur while traveling away from their tax home. It\u2019s wise to keep records of actual travel expenses, meals and other expenses incurred while \u2018away from home\u2019 working. Another item to track is living expenses at your tax home that are duplicated in the area you work in. These provide records of expenses you\u2019re required to pay due to being away from home for work.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhile you may not need to bring these records to the tax office, you will need to keep records to substantiate deductions and other expenses. They also need to keep records on the number of days they spend working in a state other than the one they live in along with income earned in each state. Since each state determines its filing requirements in different ways, it\u2019s important to keep different types of records to ensure that they know where they\u2019re required to file.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"are_travel_nurses_audited_more_frequently\"><\/span><b>Are Travel Nurses Audited More Frequently?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6120\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-audit-Resized1.jpg\" alt=\"Travel nursing tax rules - tax audit\" width=\"800\" height=\"420\" srcset=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-audit-Resized1.jpg 1200w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-audit-Resized1-300x158.jpg 300w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-audit-Resized1-768x403.jpg 768w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-audit-Resized1-1024x538.jpg 1024w, https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2021\/03\/Tax-audit-Resized1-705x370.jpg 705w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Getting audited is a stressful experience that nobody wants to go through. The unique way travelers are paid makes some worry they might be more likely tagged for an audit than other taxpayers. While some tax professionals don\u2019t feel travel nurses are audited any more than others, their tax returns may be looked at more closely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Benson explained, \u201cIf a reimbursement\/stipend plan appears to be recharacterized wages, the IRS may scrutinize returns of travel nurses who are paid significantly less in wages and reimbursed for travel expenses. They may also scrutinize the plan itself through the employer. Abusive schemes may be more susceptible to audits.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAt <\/span><a href=\"https:\/\/linkto.hrblock.com\/c\/4721644\/391260\/5683\" rel=\"noopener\"><span style=\"font-weight: 400;\">H&amp;R Block<\/span><\/a><span style=\"font-weight: 400;\">, we offer a service called Peace of Mind, which protects you for the life of your return. This means if you receive a letter from the IRS based on your return filed with H&amp;R Block and with Peace of Mind, we will handle it.\u201d<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_does_a_travel_nurse_file_taxes_if_theyre_away_from_home_when_they_need_to_file\"><\/span><b>How Does a Travel Nurse File Taxes if They&#8217;re Away from Home When They Need to File?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If you\u2019re an active travel nurse, you\u2019re probably away from home often, making it highly likely that you won\u2019t be there when it comes time to file your taxes. Filing could become extra complicated if you worked in multiple states over the past year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAny taxpayer who\u2019s working away from home may find their tax situation to be more complex than those who live and work in the same general location or state,\u201d said Benson. \u201cTraveling nurses may be required to file a resident return in their home state and, depending on the residency rules for the state they work in, they may also be required to file a part-year or nonresident return in the state they work in. As always, it\u2019s prudent to seek the advice of a tax professional for complex multistate tax returns. The federal return can be filed with the IRS regardless of where you live.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a traveler, filing electronically is convenient but may not be possible depending on the state tax returns you must submit and how you submit your federal return. Some states don\u2019t allow e-filing unless you do it simultaneously when you e-file your federal taxes. Others will let you e-file your state return separately if you e-filed your federal return and it\u2019s been accepted. Some will let you file electronically directly on their site, but you have to enter your federal tax return information again. Sometimes, you must print and mail a state return. The more state returns you must file, the more complicated it can get, making a tax professional an enormous help.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_do_travelers_know_which_states_they_must_file_taxes_in\"><\/span><b>How Do Travelers Know Which States They Must File Taxes In?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">\u201cThis can be tricky because the answer depends on the state the nurse is living and working in,\u201d answered Benson. \u201cEach state has its own residency rules and requirements to file resident, part-year resident and nonresident returns. It\u2019s important to look at the rules for each state lived and worked in to ensure the correct and complete returns are filed with the proper state.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She further explained that traveling healthcare professionals generally file a resident return wherever their tax home is located and a part-year or nonresident return for each state where they worked over the entire year. The only exceptions would be in states without individual income taxes. Currently, the following seven states have no personal income taxes:<\/span><\/p>\n<ul style=\"padding-left: 30px;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alaska<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Florida<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nevada<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">South Dakota<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Texas<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tennessee<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Washington<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wyoming<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Additionally, New Hampshire doesn\u2019t have earned income tax (on wages) but does have personal income taxes on tax dividends and interest income. However, these taxes will be phased out in 2025, so the 2024 tax year will be the last year this state collects any type of income tax.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_does_it_work_if_a_traveler_lives_in_a_state_without_income_taxes_or_only_takes_contracts_in_states_without_income_taxes\"><\/span><b>How Does It Work If a Traveler Lives in a State Without Income Taxes or Only Takes Contracts in States Without Income Taxes?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Some travel nurses who live in a state without personal income taxes will purposely only take contracts in other states without personal income taxes. Considering you have at least eight options, this isn\u2019t as difficult as you might think. But does it mean they won\u2019t pay any taxes in those states?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn these cases, the traveler may not be obligated to file a return with those states that don\u2019t impose an individual income tax,\u201d Benson confirmed. \u201cHowever, the traveler should consult with a tax professional to ensure they\u2019re fulfilling all their tax filing obligations with their home state or any state they work in that does impose an individual income tax.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFurthermore, if the traveling nurse has a consultancy business entity rather than being an employee, they should make sure they\u2019re fulfilling their state business tax obligations. Most states that don\u2019t have an income tax have some sort of business tax that self-employed individuals need to be aware of. Examples of these include franchise taxes and gross receipts taxes.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"how_should_you_handle_conflicting_information\"><\/span><b>How Should You Handle Conflicting Information?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This question has been popping up more frequently, likely due to the unique aspects of travel healthcare workers\u2019 taxes. If you receive information from your recruiter that conflicts with what a tax professional has told you, we recommend listening to the tax expert to avoid potential tax woes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, sometimes, healthcare providers receive conflicting information from two tax professionals. Tax professionals unfamiliar with the atypical tax issues that plague travel nurses and allied health professionals may inadvertently provide incorrect information. For example, we\u2019ve heard of travelers who were told by one tax expert that they qualified for tax-free stipends but then were told by another that they didn\u2019t qualify.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re unsure who\u2019s providing the correct information, err on the side that should cause you the least worry regarding owing the IRS a bunch of money. Benson says H&amp;R Block can help alleviate some of this worry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cH&amp;R Block tax pros can assist with determining a tax home and help with issues with any stipends or payments under an accountable plan,\u201d she said. \u201cSince everyone\u2019s circumstances vary, the determination of whether a tax home is in City A or City B will change depending on the person\u2019s unique situation.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As she previously pointed out, clients who file with H&amp;R Block using its Peace of Mind program are protected for the life of their return. They\u2019ll handle any letter from the IRS based on the return H&amp;R Block filed for them.<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"what_are_the_tax_advantages_and_disadvantages_of_being_a_traveling_healthcare_professional\"><\/span><b>What Are the Tax Advantages and Disadvantages of Being a Traveling Healthcare Professional?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">\u201cAs we\u2019ve described, the tax advantages of these arrangements could include the ability to exclude stipends for expenses like meals, lodging and other travel-related expenses while the nurse is away from home,\u201d Benson said. \u201cOne disadvantage is the complexity of a traveling nurse\u2019s [tax] return may be higher than a regular W-2 taxpayer who works and lives in generally the same area all year long.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"are_there_any_new_tax_rules_impacting_travel_nurses\"><\/span><b>Are There Any New Tax Rules Impacting Travel Nurses?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9060\" src=\"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/2024-Tax-Law-Changes-iStock-Resized-scaled-e1736547608188.jpg\" alt=\"Tax law changes for 2024\" width=\"800\" height=\"420\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Tax rule changes can occur each tax season, which could impact travel healthcare providers. We asked Benson about any changes that might impact HCPs for the 2024 tax year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cGenerally, the same rules for traveling nurses are in place for the 2024 tax year,\u201d Benson said, \u201cthe tax changes don\u2019t specifically affect healthcare professionals.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHowever, if your situation changed in 2024 or you started (or stopped) a traveling nurse job, it\u2019s important to make sure your Form W-4 is up to date for 2025 and you\u2019re covering any potentially taxable stipend through withholding. For example, you may want to withhold extra from wages to cover any reimbursement\/stipend that is actually taxable.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last year, Benson noted that the tax brackets shifted, so taxpayers might have seen a change in the amount of tax they paid on their 2023 taxes. Elevated taxes could still be the norm in 2024. Another change that took effect this year involves third-party payment apps, but it\u2019s doubtful this will impact travel healthcare professionals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhile it\u2019s unlikely that traveling nurses received their pay via a 3rd party payment app such as Venmo or PayPal, taxpayers who received over $5,000 in payments through these apps will likely receive a Form 1099-K from the payment processor,\u201d explained Benson.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you do receive Form 1099-K, be sure you include it when you file. Travelers with retirement plans should remember Benson\u2019s advice from last year about changes made to these plans and distributions under the Inflation Reduction Act to ensure they\u2019re covered if those rules impact them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For 2024, she added that new emergency provisions allow for withdrawals of retirement plan funds for certain emergencies including unexpected auto repairs or medical bills. Travel nursing often leads to unstable wages, so these provisions could come in handy for unforeseen expenses, such as your car breaking down on the way to a new assignment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Traveling can also cause your tax situation to change frequently. Benson emphasizes that \u201cit\u2019s always a good idea to talk to a tax professional to ensure you\u2019re taking advantage of every benefit available to you. This is especially the case when a taxpayer\u2019s situation changes.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Need help filing your tax return and maximizing your refund? Consider a provider at H&amp;R Block. They\u2019re currently running two specials: <\/span><a href=\"https:\/\/linkto.hrblock.com\/c\/4721644\/2416943\/5683\" rel=\"noopener\"><span style=\"font-weight: 400;\">15% off DIY services<\/span><\/a><span style=\"font-weight: 400;\">\u00a0or\u00a0<\/span><a href=\"https:\/\/linkto.hrblock.com\/c\/4721644\/1478531\/5683\" rel=\"noopener\"><span style=\"font-weight: 400;\">20% off H&amp;R block software<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have questions you\u2019d like answered in future updates, please leave them in the comments below.\u00a0<\/span><\/p>\n<p><strong><a style=\"color: #006400;\" href=\"#back-to-top\">Back to Top<\/a><\/strong><\/p>\n<p><b>Tax Disclaimer<\/b><span style=\"font-weight: 400;\">: The information contained herein is general in nature and based on tax laws that are subject to change. Although many details came from a tax professional, 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.<\/span><\/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><span style=\"color: #000000;\"><small><em><b>Editor\u2019s Note:<\/b> This blog post was originally published in January 2022 and has been updated annually to reflect current tax information provided by tax professionals.<\/em><\/small><\/span><br \/>\n<span style=\"color: #000000;\"><small><em><b>Disclosure:<\/b> If you click on the included links, we may receive compensation.<\/em><\/small><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Be better prepared for 2024 taxes with expert answers to common questions.<\/p>\n","protected":false},"author":17,"featured_media":9058,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[326,3,12],"tags":[19,362,123,75,90],"class_list":["post-616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-taxes","category-career-resources","category-travel-nursing","tag-allied-health-professional","tag-lpn-lvn","tag-nursing","tag-rn","tag-travel"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.vivian.com\/community\/wp-content\/uploads\/sites\/3\/2024\/02\/2024-Tax-Time-Header-iStock-Resized-scaled-e1736546983348.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/posts\/616","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=616"}],"version-history":[{"count":0,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/posts\/616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/media\/9058"}],"wp:attachment":[{"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/media?parent=616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/categories?post=616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vivian.com\/community\/wp-json\/wp\/v2\/tags?post=616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}