I am a travel nurse and am wondering if you have any advice about establishing a tax home? I won’t be keeping my apt here, so will that mean everything I make will be taxed? I know my hourly wage will be, but the per diem wage the travel company gives you, will that be taxed? I have thought about asking a friend to let me use their address, but I don’t want to get screwed at tax time! Any advice?
Thank you for reading The Gypsy Nurse. You have taken the first step on your journey to become A Gypsy Nurse.
If you do not have a legal tax home, everything that you are given should be taxed as income; including any per diem or housing. There are many travel nurses that will scoot around this by keeping an address with a friend or family member…however, there are HUGE risks with this. If you are audited and cannot PROVE that you have paid ‘market value’ for a room/apartment/etc. then you will be back taxed with penalties and fees. For me, the risk is too great so I have always had a true tax home. At times, this was a full apartment of my own and at other times, it was a rented room.
I HIGHLY recommend that you speak to a tax prep professional. I recommend that you contact a travel tax expert for your tax related questions. I use Joe Smith @ TravelTax. Joe is well versed and up to date with traveler taxes. His wife also writes tax advice for The Gypsy Nurse. I have used Travel Tax for my tax questions and needs for the entire time I’ve been a travel nurse and I trust his advice. If you have more questions regarding tax home, subscribe to The Gypsy Nurse. I have upcoming articles on housing as well as an upcoming article from Travel Tax in October that will discuss Tax Home status in more detail.
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(Disclaimer: Please note that this is the Authors opinion only. I do not provide career counseling, legal or medical consults. If you require any of these, please search out the appropriate resources)