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.
I love hearing the opinions of my readers. Your opinion could be the perfect solution for someone. Please share your thoughts below in the comments. Check out the TOP 10 Questions for Travel Nurses on Taxes.
(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)