Travel Nurse Taxes and Tax Free Money

Everything travel nurses need to know about travel nurse taxes, stipends and tax free money including how to qualify for it.

Travel Nursing Pay – Is It OK to Take $10 Per Hour as an RN?

As we discussed in the blog post on travel nursing pay packages, travel nursing agencies can split up the travel nursing pay pie in many different ways. As a result, some agencies will offer a base rate of as low as $10 per hour. As a Registered Nurse, or any other highly trained healthcare professional, you’re probably thinking that there is no possible way you’d work for $10 per hour. But remember, you should be less concerned with the hourly rate and more concerned with overall value of the entire pay package. However, there is debate over whether or not it’s acceptable by IRS standards for travel nurses to work for such a low rate and there are certainly risks involved for nurses who do.

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Travel Nursing Pay – The 50 Mile Myth for Tax Free Stipends

Perhaps the most common fallacy regarding tax-free stipends for travel nurses is “The 50 Mile Rule.” This myth is prominent among both travel nurses and recruiters. This “rule” is often said to allow nurses to accept tax-free stipends as part of their travel nursing pay as long as the assignment they’re taking is 50 miles or more from their tax home. This is not correct. The IRS makes no such determination. There is no such rule.

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Travel Nursing Pay – Qualifying for Tax-Free Stipends: Part 4: The 3 Factor Threshold Test

In our previous blog post, we discussed how to qualify for factors 2 and 3 of the 3 Factor Threshold Test that the IRS uses when determining whether or not a tax payer qualifies to receive tax-free stipends. In this blog post, we’ll discuss factor 1. We chose to tackle factor 1 last because of its subjective nature. Unlike factors 2 and 3 which are straightforward and clear no matter the scenario, the method for satisfying factor 1 may vary depending on whether or not you’re aiming to qualify under 2 or 3 of the factors in the 3 Factor Threshold Test. Read more

Travel Nursing Pay – Qualifying for Tax-Free Stipends: Part 3: The 3 Factor Threshold Test

Now that we have made the distinction between indefinite work and temporary work, and we have discussed how to maintain temporary status as a travel nurse, we can move on to our discussion about how to maintain a legitimate tax home. Again, the three factor threshold test is going to be in play for the vast majority of travel nurses because they don’t have a permanent job back at home from which they derive a significant percentage of their income. In this blog post, we’ll begin our detailed discussion of the 3 factor threshold test, paying particular attention to the circumstances faced by travel nurses. Read more

Travel Nursing Pay – Qualifying for Tax-Free Stipends and Tax Deductions: Part 2: Maintaining Temporary Status

In our previous blog post we laid out the criteria under which individual tax payers can qualify to receive tax-free money to cover their expenses while traveling away from their tax home. We pointed out that for the vast majority of travel nurses, the first consideration is to maintain status as a temporary worker. In this blog post, we’ll discuss what that takes. Read more

Travel Nursing Pay – Qualifying for Tax-Free Stipends and Tax Deductions: Part 1

A thorough understanding of what it takes to qualify for tax free stipends is of the utmost importance for travel nurses. While many travel nursing agencies, travel nurse recruiters, and even travelers will tell you that there is a lot of “gray area” or “wiggle room” with respect to the qualifications for tax free stipends, the simple fact of the matter is that the IRS and applicable court rulings have made the qualifications quite clear. And it’s certainly clear who doesn’t qualify for tax-free stipends.

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Travel Nursing Pay – The Disadvantages of Tax-Free Money

You’re probably wondering why anyone would want to avoid tax-free money. I mean, who could possibly want to pay taxes, right? Unfortunately, there’s a catch. In fact, there are quite a few catches. First, you want to make sure you even qualify to receive tax free money. Once you’ve determined that you qualify, you must consider that your taxable income has ramifications for several other financial matters.   Read more