There Are Significant Nurse Tax Advantages For Travel Nurses
Completing a federal and state income tax return every year can be a daunting task, especially for travel nurse taxes. That’s why Tax Samaritan recommends that you seek qualified tax help to obtain the appropriate level of tax relief for nurses.
Travel nursing has many perks and a common question that we receive is “what can nurses claim on tax returns? Well, a common one is deductible travel expenses. Expenses for transportation, meals and lodging for a temporary assignment are deductible for a travel nurse while away from their tax home. To help you better understand when nurse travel tax deductions qualify, please read the following definitions and examples:
What Is A Nurse Tax Home?
“Tax home” is the home you return to on a regular basis where you incur substantial and recurring expenses. It is your permanent residence – the home you return to between assignments. The importance of your tax home is important because you must be traveling away from your tax home on a temporary assignment to qualify for nurse travel tax deductions.
Your nurse tax home can be proven by the following:
- Driver’s license for your tax home state
- Registered voter in your tax home state
- Proof of residence, such as mortgage documents and/or rent receipts
- Car registration in your tax home state
- Proof that you return to your tax home at least once per year and file a state tax return for your tax home state
- Travel nurse/assignment contract
What If I don’t Have A Permanent Residence?
If a taxpayer has no regular place of business (or work assignment) and maintains no fixed home (such as traveling from assignment to assignment), each place the taxpayer works becomes his tax home. Therefore, the taxpayer may not deduct any travel expenses and by IRS definition, you are considered a transient worker.
What Is A Temporary Assignment?
Expenses incurred on a temporary assignment away from home are deductible; expenses incurred while indefinitely employed elsewhere is not deductible. Temporary, according to the IRS, is anything less than 12 months. If you worked in one assignment during the entire previous calendar year, you are not eligible for nurse tax deductions for travel.
Travel Nurses – Tax Deductions For Nurses
Once you’ve determined that you were traveling away from your tax home and have determined your travel nursing assignments were indeed temporary, it’s time to take advantage of the many tax deductions for nurses available for you such as:
- Transportation costs
- Lodging and meals
- Dry cleaning and laundry costs
- Telephone and internet expenses
- And more…
State Tax Returns For Travel Nurses
Travel nurses typically work in multiple states over the course of a calendar year, and as a result multiple state returns must be files in accordance with each individual state’s laws and regulations. At Tax Samaritan, we are experienced in filing state tax returns for all states and can assist you with your multi-state filing obligations.
Free Tax Consultation For Nurse Tax
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Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a travel nurse, we further recommend that you seek a professional who is experienced in nurse tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent nurse tax payers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.