Travel Nurses – Understanding the IRS Concept of a “Tax Home”

One of the most confusing and misunderstood tax rules for travel nurses is the concept of “tax home”. Yet, it’s perhaps the single most important rule for travelling nurses to full understand as the consequences of not understanding the rules can be financially devastating. A proper understanding of tax home is important as it determines whether or not reimbursements, such as housing allowances and stipends for transportation, lodging, are even meals have been properly classified as taxable or tax-free.

Generally the IRS views your tax home as the geographical area where you earn the majority of your income. It is not the permanent residence — your permanent personal residence — where you maintain your legal residence. Ultimately, the IRS differentiates between a permanent personal residence and a tax residence. This is important because meal and lodging expenses incurred while working away from your tax home are deductible. But in some situations, your tax home is wherever the job is.

Taxpayers without one regular place of business, including travel nurses who accept multiple temporary assignments, can follow certain strategies to strengthen their entitlement to travel expense deductions. Travel Nurse Tax Pros’ persoanl residence and tax home survey is specifically designed to help you assess where your tax home is. To take the survey complete the following:

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