Some cities (especially the larger ones like Boston, New York, or San Francisco) are well-linked to a greater surrounding area by highways, public transportation, and more. Wait, city or general area? Yes―and this vague wording is put there on purpose. The IRS explains that a tax home is: “the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home." The IRS defines a tax home as your “principal place of business.” But, in typical IRS fashion, this definition may already be raising more questions than answers―what is a “principal place of business,” anyway? How do you figure out what your is? This can be a confusing process, especially for first-time travelers, but it doesn’t have to be!įirst, let’s go through exactly what tax homes are. One of the most important steps you can take to protect your earnings as a travel nurse is to understand what a tax home is, and where your tax home is located.
For questions on your unique case, you should reach out to the IRS or a tax professional directly.Īlso, if you're just starting to think about travel nursing (and aren't yet sure where taxes even fit into the equation), we highly recommend you read this Travel Nursing Guide. It covers everything from how to become a travel nurse to how to maximize your pay. While we’ll be going over travel nurse tax home basics in this article, it’s important to include the disclaimer that we’re not tax professionals! This article is for general educational purposes only. Understanding travel nurse tax homes can be tough at first, but once understood, very important if you're interested in traveling while maximizing your earnings. While higher earning potential in addition to tax advantages are a no-brainer, the complex and unintuitive tax implications and filing requirements are certainly not.
Since travel nurses are working away from their "tax home," certain companies must legally provide stipends and/or reimbursements for their work (more on this below). While working as a travel nurse adds an additional layer of tax challenges, it can also be a great way to gain a tax advantage.
As we began our last piece on nursing taxes: There are taxes.
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