Taxes are Exciting!


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All the rules and guidelines mentioned on this page are based on tax law. It is recommended you see a tax advisor to be sure that your circumstances meet all of the IRS’s guidelines.

A few more benefits to being a travel nurse:

It's no secret that travel nursing comes with many benefits. The tax advantages are amongst them. But before you can leverage the significant tax priveleges that come with this profession, you have to understand them. Although we are not tax advisors, we can provide you with information and resources to assist in the process. Combining the tax advantages along with an awareness of what's available helps you keep more of your paycheck in your hands. Here at Nurses PRN, we are determined to clarify some of the basic conversations and questions that surround taxes and travel nursing. We, again, recommend you seek a qualified accountant before filing - but hope that these questions and downloadable forms help you get a jump start on the process.

Do I qualify for nontaxable travel benefits?

There are a couple factors to take into account to receive these benefits. You need to have a permanent tax home, that tax home cannot be within commuting distance of your travel assignment, and that assignment with extensions cannot last longer than one year.

How far is the commuting distance?

For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier in IRS publication page 17) of traveling away from home for your business, profession, or job. You will find examples of deductible travel expenses in Table 26-1, found in the Home Requirements Document you can download to the left.

What happens if I fail to meet any of the rules?

If you fail to meet each area of the rules then all travel costs will be treated as taxable income beginning with the first day of the assignment. Any expenses incurred from meals, mileage, and housing are subject to payroll tax withholding.

Can I take a different assignment in the same area and still be nontaxable?

You may take a different assignment in the same area to receive the benefits as long as all the assignments in the general area added together do not exceed one year.

What happens if my assignment is extended beyond a year?

As soon as it is known that the one year limit is expected to be exceeded all travel benefits will be treated as taxable income. For example: If you’re 6 months into your 1 year assignment and you receive an extension then at that moment in time all benefits will become taxable.

What is a Tax Home Representation Form and when should I complete it?

This form is used to help determine whether you are eligible for nontaxable travel benefits. It should be filled out prior to starting an assignment, whenever there is a change in your tax home status, or each time you execute a new Professional Services Agreement.

Do I have to keep track of the commuting rules?

You should always be aware of how long you are on an assignment and the commuting rules. However, our Nurses PRN recruiters and tax department will monitor your status and inform you of any issues and/or problems.

What is a Housing Allowance Representation form and is it required?

If you are receiving nontaxable travel benefits then it is believed that you will be incurring lodging expenses. Expenses include motel costs, rent for an apartment and utilities such as water, gas, and electric. They, however, do not include things like telephone, cable TV, or the internet. This form needs to be completed to be eligible for a tax-free housing allowance.