Tag Archive for: Travel Nursing Tax Home

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

The “50 Mile Rule” is one of the most common fallacies pertaining to tax-free reimbursements for travel nurses. It’s prominent among both travel nurses and travel nursing recruiters. Purveyors of this “rule” claim that it allows travel nurses to accept tax-free reimbursements as long as the travel assignment is 50 miles or more from the travel nurse’s tax home. This is incorrect. The IRS makes no such determination. In this article, we’ll thoroughly review this topic so travel nurses can approach it with confidence. Read more

Travel Nursing – Is It Worth It Without a Tax-home?

Travel nursing agencies and their recruiters trumpet the benefits of tax-free stipends in their marketing campaigns and sales pitches. And of course, why wouldn’t they? In most cases, the tax-free stipends can result in hundreds of additional dollars making their way into the pocket of the travel nurse. But what if the travel nurse doesn’t have a tax-home and therefore doesn’t qualify for tax-free stipends? Is it still worth it? There are several issues to consider when answering this question.
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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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