By The Gypsy Nurse

January 23, 2014

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Talking Travel Nurse Taxes: The Regional Traveler

Talking Travel Nurse Taxes – The Regional Traveler: 

What Happens When You Return Home Frequently During Assignments

Written prior to tax reform 2017. Watch for future articles.

Many travelers take assignments significant distances from their home but there are some that journey shorter distances, traveling within a few hours’ drive. These assignments allow the traveler to stay close to home, spend time with family, or attend to other priorities that preclude a long-distance assignment.

Most staffing contracts design tax-free per diem payments for lodging and meals around a 7 day a week payment with the assumption that the regional traveler will be away from home overnight at the assignment location for the duration of the contract.

This assumption creates some thorny tax issues for travelers that travel shorter distances and return home frequently – especially those that stay in hotels or only rent accommodations during workdays.

Before we explain how frequent returns home affect taxes, it may be good to discuss how per diem payments function. That will be the focus of this first part of the series.

The Per Diem Payment – How it Functions

In a perfect world, when an employee incurs travel-related expenses for meals and lodging, they will submit their receipts to a designated individual who approves a reimbursement, or the employee has an expense account allowing them to use a corporate credit card which is reviewed at various intervals. When an operation has a large number of employees traveling, it can become a huge administrative task to track all the employee expenses.

The IRS Allowance

To reduce the compliance burden on businesses, the IRS allows the use of a per diem (meaning per day) payment to cover meals and lodging expenses in lieu of actual receipts. The Federal government has long published standardized, daily rates for lodging and meals for its own use, and businesses are allowed to use these published rates in computing the amount they pay to their employees. The IRS also allows an individual to use the meal portion of the per diem tables for their personal tax returns. These per diem rates are based on a standard amount and adjusted for higher-cost areas like large cities or foreign countries. In lieu of receipts, a business can pay any amount up to the published rate for lodging and meals. Anything above the published rate requires a receipt. An employer is also free to pay less than the published rate so long as the meal and lodging component is accounted for as the IRS does not allow lodging only per diems.

How the Staffing Agencies comply

Many staffing agencies use the per diem method to reimburse travelers for lodging and meals if they are not directly paying a landlord or providing lodging themselves. The per diem method of reimbursement has an interesting twist that confuses many travelers but also presents a savvy method to maximize take-home pay. Under the per diem method, expenses for lodging and meals are deemed to be the same as the per diem payment. What does that mean? If the per diem is $100 and the lodging only costs $50, the cost is treated as the $100 payment. The excess over the actual expense is ignored and continues to be treated tax-free. In other words, the traveler keeps the difference. This seems contrary to conventional thinking, but the rationale behind the provision is that the expense in tracking the payments is more than the tax revenue forfeited when the excess is free of tax.

Why does this Effect the Traveler?

This sets up a thorny tax issue for the traveler who frequently returns home while working an assignment a few hours away. Under the per diem method of reimbursement, the recipient of the allowance must incur an expense for each day the tax-free payment is made. If the traveler gets a hotel room for 3 nights and sleeps at home for 4 nights, 4/7 of the lodging per diem is taxable – or, alternatively, the excess of the per diem over the expense. The same principle applies to a trucker who sleeps in their cab at night cannot receive a tax-free lodging per diem- it must be treated as wages since there was no lodging expense to justify the payment.

In the next part, we will explore this more fully and provide examples of how this applies to a number of situations.


Would you like to learn more?

Check out the TOP 10 Questions for Travel Nurses on Taxes.


If you are a new travel nurse or looking into becoming a travel nurse:

Travel Nurse Guide: Step-by-Step (now offered in a PDF Downloadable version!)

Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By The Gypsy Nurse

December 18, 2013

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Travel Nursing: Thoughts from a Traveling Child

The following is a Guest Post via Kalen Weldon

Travel nursing to me when I was a child was something I didn’t really understand.

I just knew my mom worked really hard and it was her dream to be a travel nurse.  When we hit the open road, I began to enjoy traveling lifestyle more and more.

Yes, I missed usual teen things as in school dances, prom, etc, and most of my socializing over the internet.  But that’s just how things are when you are only in one spot for 6 months.

“…most importantly, I’m grateful for my mother who showed me that with a great work ethic, your dreams and goals can come true.” – Kalen

In trade, I got to see so many things…

Such as the Mall Of America, a Tennessee Titans football game, a Minnesota Twins game, and beaches on both the East and West coast.  In fact, I’ve even gone fishing in both oceans a few times.

That was just some of the fun things I got to do as a child. From an educational stand point, I got to learn about our country. I’ve toured countless battle ships, submarines and battle fields.

I’ve learned a lot about our history that our school systems don’t teach.

Like The Battle of Corinth in Corinth, Mississippi was the most deadly battle in our nation’s history, it was also a critical point in the civil war. I also learned that following a fierce night of British bombardment, the dawn of September 14, 1814, revealed the huge American flag still fluttering over Fort McHenry. In a burst of patriotic pride, lawyer Francis Scott Key penned four verses he dubbed “Defense of Fort McHenry.” Within weeks, it was published with sheet music under a more lyrical title, “The Star-Spangled Banner.” The song, that became the American national anthem in 1931.

So, how has my experience as a travel nursing child transformed into my life as an adult?

It’s been fantastic. I wouldn’t change a thing about my life and traveling with my mom.

My wife graduated high school 4 years ago; her brother graduated 2 years ago. We talk about our nation’s history and when I bring up some of the battles, battlefields, or the wars, they have learned everything from a book; whereas, I have learned everything through experience.

When my wife and I travel to place, we taking our time and really enjoy what nature has provided us and we look for historical places to visit.  I have memories that I’ll never forget, stories I can tell my kids. I’m more grateful for what I have, the things I get to do and most importantly, I’m grateful for my mother who showed me that with a great work ethic, your dreams and goals can come true.

Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By Katy

December 3, 2013

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Ask A Travel Nurse: RV Living RoundTable (TravCon14)

The discussions at the RV Living RoundTable this year at the conference was varied and informative.

The round table discussions were attended by gypsies who have never lived in an RV, dreamers planning for their first assignment, gypsies who live in their RV’s now who just want more information, and gypsies who have a lot of experience with RV living and were willing to share it. The Round Table was formatted as a question answer and discussion format so anyone with a question could get help.

As winter is approaching, the main questions were related to living in an RV during the cold weather season.

My first experience with winter weather happened about a week after moving into the 5th wheel. We had bought a four season RV and thought that as long as we had the heaters on and the underbelly was heated we were fine. Then we woke up and the water line (from the faucet to the RV) was frozen, the sewer line (from the RV to the sewer) was frozen and our fresh water tank was empty. We learned several lessons from this experience.

  • You must have a heated water hose going into the RV. You can make your own using heat tape but we chose to buy a heated water hose. We bought the Pirit brand.
  • Keep the grey and black water sewer lines closed during freezing weather. Remember when you empty, empty the black water first, then the grey water to flush the line.

Another question was how to most economically heat the RV in the winter time?

At most parks, electric is included, but most RVs heat with propane. The answer that most of us came up with was to heat with electric space heaters unless the temperature is below freezing. You must use the propane to heat when the temperature drops close to freezing so that your underbelly will be heated and your waterlines will not freeze. Some RV’s have heat pumps that work on electric and a furnace that works on propane.

Where to park your RV on assignment was also addressed.

The most important thing I can say to this is to stay where you feel safe. For some people this would be a traditional RV park. Others, like me, are comfortable staying at alternate places such as a mobile home park that accepts RV’s or a place on private property that has RV spaces. The more open you are the more diverse the rates will be.

I have a blog that tells of some of my experiences with RV living and the road to that first assignment. You can find it at http://rnrvfulltime.blogspot.com I would love to answer any other questions that you have. There are several RV forums on the internet that will also help answer your questions.

Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By The Gypsy Nurse

November 29, 2013

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Themed Street Art at Home and Abroad

One of the interesting things that I found early on in my travels is that there are many places throughout the US that have Themed Street art around the town.

Norfolk VA

In Norfolk Virginia, I was seeking cheap/free things to entertain my then 13 y/o daughter during her summer visit and I found Mermaids! Norfolk is full of mermaids!! Well, not real mermaids…did you think I’d lost my mind? They are actually artistic statues of mermaids. They are all over town! I don’t know how many in total but they are all themed and named and have some cute stories behind them. Pretty cute, I think! My daughter and I ended up going on a mermaid hunt and had a great time trying to find all of the mermaid statues scattered around the city.

(Unfortunately, I do not have photo’s from my personal Mermaid Hunt so I’m sharing the ‘borrowed’ photo’s below. Please stop by these sites and explore more of this fun and unique city.)

Louisville KY

While visiting Louisville KY on a Photo Safari with my daughter, we found Horses!  Statues of fancifully painted horses can be seen around Louisville. The horse statues were a part of the Gallopalooza art exhibition, and the horses honor past winners of the Kentucky Derby.

San Miguel, El Salvador

A recent trip nearly 5,000 miles away from Louisville, I discovered that themed art does not stop at the US border.  In San Miguel El Salvador, one of the local Colleges (Universidad Andreas Bello) has sponsored some great street art.  Art Deco Styled paintings abound on random poles down one lonely street near the College.  Each of these themed pieces of art explore a bit of the beauty, culture and activities of the local area. Also in El Salvador via the “Ruta de las Flores” there are several small towns with roadside murals depicting local events, festivals and daily life. 

Have you visited a city with Themed Street Art?  If so, please share it in the comments…I’m always interested in unique (and free) sights to explore in a new city.

Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By The Gypsy Nurse

November 24, 2013

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Free Things to do in New York City

free things to do in New York city
Photo: https://www.nyc.com/

Ever wonder what to do in New York City? You can find fun, inexpensive and free things to do in New York City. Are you a beer drinker?  How about a Free Brewery tour? Explore a different neighborhood with a city walking tour of SOHO, Little Italy, The Brooklyn Bridge, or a  Staten Island Ferry ride. Yes still FREE and much more…..

There is so much to do in NYC, and it can be expensive. Save your wallet and check out these free things to do. There is something for every interest.

Find Free Things to do in New York City

Museums

There are many museums in NYC that offer free admission. If history is your jam, check them out and take advantage of these free visits. Some of these are always free and others have special FREE days. Check the website for details.

Free Walking Tours

Plan your time off by exploring one of these free walking tours. There are some interesting places that you can explore in New York City for free. Be aware, some of these require pre-registration so plan ahead for those days off.

Get Outdoors

If you’re lucky enough to be in New York City during warmer weather, take advantage and get outdoors. These places and activities offer free admission or free days to enjoy the great outdoors.

Websites to Check

See what sounds fun to you.  Find another traveler and get on your walking shoes! GO EXPLORE!!!  No matter where you are!

Have you been to NYC? If you’ve visited any of these free things to do in New York City, let us know how you enjoyed them in the comments. Do you know of activities that we don’t have listed? Share them in the Comments below.

Finished the travel nursing guide and are ready to look for an assignment?

Check out our travel nurse jobs!

Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By Joseph Smith @ Travel Tax

November 21, 2013

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Talking Taxes: The “Abandonment” Issue Regarding Tax Homes, Part 2

The Traveler Tax Home “Abandonment” Issue

Written prior to tax reform 2017. Watch for future articles.

In last month’s installment, we explored a relatively new rule some agencies impose after a traveler has worked 2 years of assignments, requiring them to return home for 45 days. In some cases, the traveler must work at home during the 45 day period before returning to travel. As we mentioned, there are variations of the rule, but in all of them, a substantial visit to the home is required after two years of service.

Where did this come from?

For some, this may be a boring trip through the history of tax legislation, but for those of us who like to know “why” as well as “what,” understanding the rationale of regulation is very insightful.

Before 1992, back when I traveled (I’m dating myself obviously), there was no “one year rule” that limited an assignment in one geographical area before the per diems / reimbursements became taxable. Before 1992, one could not be away from home longer than a year regardless of location. A “rebuttable presumption” that any work away from home longer than a year was either permanent or caused the taxpayer to be treated as an itinerant (no tax home). The one-year presumption could be overcome (rebut the presumption) if the taxpayer could provide evidence that they would return home permanently before the end of 2 years. Any series of assignments away from home for more than 2 years, regardless of location, would cause the taxpayer to be treated as having a permanent/indefinite job or classified as an itinerant. Under these old rules, a traveler could actually stay in the same area 2 years before per diems / reimbursements were taxed

All of this changed with the passage of the Energy Policy Act of 1992.

The 1-2 year rule defining work away from home was changed to the current rule defining temporary, work away from home to work which did not last more than one year in one geographical area once the taxpayer works in the same geographical region for more than a year their tax home shifts to the current place of work. The change of focus from away from home regardless of location to away from home in one area recognized the increasing mobilization of America’s workforce.

Fast forward to 2013 – if you recall..

… the definition of a traveler tax home is one of an economical home (not a permanent residence- those are two different concepts). In other words, it is where one works, not where they live. If a person has 1 permanent job, the area of that job is their tax residence whether they drive 1 mile or 100 miles to get there. A traveler does not have a primary job site unless they stay in the same area for over a year or have repetitive assignments in the same area. When one does not have a primary area where they earn their income, the tax home can default to the traveler’s permanent residence provided two of three of the following tests are satisfied.

The Traveler

1) Has significant income at home

2) Has substantial expenses maintaining a residence which are duplicated while on assignment

3) Has not abandoned their historical area of work and residence

This brings us back to the 45-day rule that some agencies are implementing. There is a belief among many tax practitioners that the IRS views the “abandonment rule” within the structure of the old tax home rules. Specifically, if a taxpayer is away from home for more than two years, they have abandoned their residence and fail criteria #3 as noted above. This is separate from the current one year rule limiting temporary assignments to 12 months in one geographical area.

When an agency uses this 45-day rule, it is attempting to graft due diligence to ensure that the traveler has not abandoned their tax residence. This is important as an agency must exercise reasonable due diligence to screen and monitor its employees’ tax home status. Otherwise, the IRS would assess severe penalties on an agency for paying tax-free reimbursements for lodging, travel, and meals without a justifiable basis.

While this is an understandable effort at compliance, it leaves travelers who return home frequently in a bit of a quandary. Our firm believes that regular returns home during the year totaling 30 days in a 12 month calendar period is better than a 45-day return after a two-year absence. Unfortunately, some agencies take an inflexible approach to this rule and create a conflict with travelers who have returned home regularly during the two years of service.

For travelers facing this dilemma, the best approach is to provide the agency a list of days spent at home and hope that this will be acceptable.


Would you like to learn more?

Check out the TOP 10 Questions for Travel Nurses on Taxes.


Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By The Gypsy Nurse

November 12, 2013

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Embarking on a Health Journey: Connections Made on the Road

The following is the second in a series of posts documenting the path of two Graduate nurses embarking on an unconventional Health Journey… This second article discusses connections made on the road.

I met Maggie and Chelsea at a Gypsy Nurse Meet & Greet in Knoxville back at the beginning of May 2013. Maggie and Chelsea were at that point, nearly Graduate Nurses, with only a few short days left of finals and Graduation.  I’m still uncertain why they chose to attend the Travel Nurse Meet & Greet but I am thrilled to have met them and been invited along on their their unconventional journey of learning, exploration and travel…

The sun has been up for a solid two hours when I finally crawl out of my sleeping bag.

I stretch and greet the fresh morning air with a yawn, slip on sneakers and decide to go for a run. As I trot along the small paved rode in the campground, I look up and can see the very tip of the Tetons peeking up over the trees. My morning run has been what gives me a rhythm in this seemingly rhythmless lifestyle and also reminds me of how different each place is. Has it been a month? That seems so strange. Our time is now kept straight by location, rather than days of the week. The past few states — South Dakota, Montana, Wyoming — have given us peace of mind and a beautiful feeling of insignificance.

Our first night in South Dakota marked the beginning of our trip beyond the west shore of the mighty Mississippi. We left Minneapolis later than we intended (a trend we find easy to fall into every place we visit) and the sun was sinking fast. We both were nervous to drive into the Badlands at night and unsure of our next move. We focused on the setting sun, a red I have never experienced in nature, backed by a delicate, light pink. We both were mesmerized.  We chose to chase what was left of the sun up a hill and watch it sink. There we sat on the hood of “Wildcat” (a two-door 2001 Chevy Cavalier) and observed the beauty of a sunset in a sky that seemed endless. Behind us, the full moon was on the rise. The two orbs shared the sky for the remainder of the sunset. This moment brought us peace and we decided to hunt a campsite here rather than ride on. Our curiosity led us down a little dirt road to a beautiful spot on the Missouri River where Lewis and Clark spent time during their expedition. We set up camp beneath the moonlight and reflected on the past week.

Our journey began at The Farm in Summertown, Tennessee

Here, we had a chance meeting with Ina May Gaskin, “the mother of midwifery,” and her husband Steven outside The Farm Clinic.

We were guided through a three-hour tour of Frontier Nursing University and learned more about Mary Breckinridge, the Frontier Nursing Service, and her success in addressing the health needs of the rural Appalachian population in eastern Kentucky. We were graciously invited into the home of a midwife in Appleton, Wisconsin. She introduced us to the many medicinal herbs that can be used for maternal and child health and to her sister who practices acupuncture in Minneapolis. She also connected us with a midwife in La Farge, Wisconsin who works with the Mennonite and Amish communities and has success delivering high-risk twin and breech babies vaginally in the clinic which would be considered too high-risk and require cesarean section in a hospital.

In Minneapolis, Minnesota we visited Morning Star birth center and learned about its lending library where expecting families can check out books, dvds, and magazines about the birth process and other topics about which new parents may want to educate themselves. In Minneapolis, we contacted a craniosacral therapist and once again we were offered an invitation into a home, a gracious trend we are finding in the birthing community. While she answered our questions about craniosacraltherapy, she asked us to share our perspective on some ideas she is continuously exploring about birth. Also in Minneapolis, we were fortunate to meet with two malpractice lawyers, one who defends patients and one who defends doctors and nurses.

We drove through a herd of bison in the Badlands National Park.

We helped scout mountain goats and wrangled up six hens and a rooster in Montana. In the Grand Teton National Park, we wandered off the beaten path, which forced us to climb giant boulders that had fallen in a rockslide. This wandering was accidental, but provided us with a view of the Tetons that looked two-dimensional and uncovered the entirety of Hidden Falls that could not be seen from the trail.

We made it to Denver, Colorado in time for the Improving Birth rally on Labor Day. At the rally, we met local midwives and were invited to tour a well-known birth center in the area. In an effort to fit in while in Denver, we both threw up on Colfax Avenue on different days. One of us had food poisoning and the other had altitude sickness. While we were gaining our strength back from being under the weather, we visited Arches National Park in Moab, Utah on the rainiest day it will likely see all year.

In Salt Lake City, we met a kind woman who insisted on cooking us dinner and giving us a place to sleep for the night once she discovered we were traveling. In the morning, she insisted we take a loaf of bread, a box of wine, and our pick of cans from her pantry before leaving her house. At the hostel in Eugene, Oregon, we befriended a man who took us on an adventure to Umpqua hot springs, where nudity and friendly smiling strangers are in abundance. On our way back to Portland, we stopped in Aurora to cut into our new friend’s watermelon. As we sat on the sidewalk devouring the melon, a car pulled up and the driver asked if we needed anything. She said her husband called her to let her know two Tennessee girls who “looked like they came right off The Farm” were parked in front of the clinic. As fate would have it, we were parked in front of a family health clinic that also serves as a birthing center. The woman asking if we needed anything was the midwife who started the clinic. It had been over a week since we sought contact with any midwives and this one seemed to find us.

We made our way into Seattle, Washington and with more good fortune were able to meet with Penny Simkin who has been working in the birthing community for 35-plus years as a birth advocate, physical therapist and doula.

We are deeply inspired by how diligently she is working to improve birth in our society and pass on what knowledge she has gained for assisting women during childbirth. She teaches child birth classes, has developed models for identifying and assisting pregnant women who have suffered abuse, and been a general advocate for safe and empowering child birth in the United States.

Like with matters of the heart, a breakdown in communication seems to be a major source of conflict between different parties in the birthing culture. This often creates a lack of support for different techniques and prevents the utilization of one another’s strengths.

Each professional involved offers essential practices and tools that make birth safe and enjoyable.

In the midwives we meet, we see the power of support and a deep patient-physician relationship. Medically, we see that modern developments are saving lives when women’s bodies are incapable of completing the task alone. Legally, we understand the value an unborn life has in our society. Birth will not only be enhanced by collaboration, but is truly dependent on such for success. Every person in the birthing community has an excellent and important perspective that, with respect and collaboration, could produce great outcomes.

We began this trip with 69,945 miles on the car, are now at 79,224, and are only half way through.

Maggie: We have gained valuable insight of both the birthing community and ourselves. We are most thankful to our families and friends old and new.

 If you are in the field of ‘birthing’ and would like to connect with Maggie and Chelsea, you can follow them via Facebook Maggie and Chelsea.  Currently in San Francisco; upcoming locations include: Palo Alto, Los Angeles, Monterey, Tuscon (AZ), Phoenix (AZ), Albequerque (NM), Toas (NM), and Austin (TX). Show them the support that the Gypsy Nurses can provide by linking them to your contacts, offering a coffee meet-up or just say hello!

I have to say that I am astounded by the connections that Maggie and Chelsea have made along the way.  There is a community of nurses out there that are just waiting for an opportunity to share their love of nursing in a nurturing and productive way. Maggie and Chelsea’s journey has re-affirmed for me the ‘heart’ that is behind the nursing profession. So much of the time, we are too busy to lend a hand, share an experience, provide mentorship.  Let’s all take Maggie and Chelsea’s experiences and look to make nursing a more collaborative effort.

Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By Joseph Smith @ Travel Tax

October 17, 2013

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Talking Taxes: The Tax Home “Abandonment” Issue

Guest Article via Joseph Smith @ TravelTax.com

Written prior to tax reform 2017. Watch for future articles.

What is Tax Home “Abandonment”?

How does tax home abandonment affect the Travel Nurse?  What can you do to protect yourself?  Joseph Smith from TravelTax.com helps make some sense of this confusing issue.

Many travelers have asked us about recently updated agency policies that require a traveler to return home and either work locally or stay at home for 30 to 45 days every two years. The conversation goes along these lines: “You have been traveling for two years. You need to go home for 45 days and work or you will lose your tax home”. There are variations of this conversation, but the policies require the traveler to go home after 2 years of service.

First, this is an Agency rule. Not something from the tax code.

Unfortunately, it is made out to be an IRS rule which is misleading. So why are many agencies adopting this rule? The returns home are an attempt to avoid the “abandonment rule” that is a part of the regulations regarding a tax home.. A tax home is an economic home (not a permanent residence – those are two different concepts). In other words, it is where one works, not where they live. If a person has 1 permanent job, the area of that job is their tax residence whether they drive 1 mile or 100 miles commuting. Due to the temporary nature of their contracts, a traveler does not have a primary job site unless they stay in the same area over a year, or have repetitive assignments in the same area over 2 or more years.

When one does not have a primary area where they earn their income, the tax home can default to the permanent residence provided they pass two of three of the following tests.

  1. Have significant income at home
  2. Have substantial expenses maintaining their residence which are duplicated while on assignment
  3. Have not abandoned their historical area of work and residence

The agency rules requiring a return home are addressing abandonment in criteria #3. A few examples can help explain how this is applied:

  • Situation 1: Traveler X does not return home for 3 years.
  • Situation 2: Traveler X returns home 15 days a year for a vacation
  • Situation 3: Traveler X comes home 30+ days a year

Traveler 1 has a problem.

A three-year absence without returning home is an abandonment of their home. Going away three years without a return home generally means they will continue the process. Since tax return audit cycles are 3 years (A 4-year-old return cannot be audited except in special circumstances), a 3-year audit will reveal continuous life on the road. They then become “iterant” as a lifestyle choice in the eyes of the IRS.

Traveler 2 has a potential problem.

Under other areas of the tax code, a principal residence is defined as a place that the taxpayer occupies more than 10% of the rented days. Though a traveler maintaining a tax residence does not rent their home in its entirety, the spirit of the rule still applies. 10% of 365 days is 36-37 days. Returns home of minimal duration does not evidence one’s commitment to a residence more than a lack of commitment or abandonment.

Traveler 3 has a substantial time investment at home and more closely follows the 10% rule

It is our experience that Traveler 3 has a lower risk of an adverse audit (not the risk of being audited, but surviving an audit), than the other 2 and we encouraged our healthcare staffing clients to make a point of spending 30 days a year at home if possible. Mobile professionals working in other industries such as the nuclear and engineering allow for different approaches.

While we like to see our clients return home for 30 days a year, this often conflicts with an agency mandate of returning home 45 days every 2 years. As many travelers know, agency rules that establish corporate due diligence before government agencies do not satisfy the traveler’s obligations. Travelers often have a higher burden of proof when under audit. Their obligations exceed that of the agency.


Would you like to learn more?

Check out the TOP 10 Questions for Travel Nurses on Taxes.


Join The Gypsy Nurse Nation

Discover new travel nurse jobs, subscribe to customized job alerts and unlock unlimited resources for FREE.

Since just recently joining The Gypsy Nurse, I have had so many questions answered about the world of travel nursing. This has been an excellent resource!
—Meagan L. | Cath Lab

By The Gypsy Nurse

August 15, 2013

466234 Views

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Career Changes In Nursing: Exploring the Options, Reasons and Methods

Disclaimer: This article has corporate sponsored links.

The possibility of career changes in Nursing is one of the draws to the profession.

A nursing career can be anything you want it to be. The possibilities are endless. You can work in a high-energy position like ER or Trauma with all the excitement that you can handle, as a case manager in a lower key office setting, or even start your own Nursing Business as an Entrepreneur. There are thousands of positions and specialties within nursing. It all comes down to finding your own personal niche. 

According to the BLS (Bureau of Labor Statistics) “Employment of registered nurses is expected to grow 26 percent from 2010 to 2020, faster than the average for all occupations. Growth will occur primarily because of technological advancements; an increased emphasis on preventative care; and the large, aging baby-boomer population who will demand more healthcare services as they live longer and more active lives.”

Are you ready for a career change?

There are tremendous growth and opportunity in the industry as a whole. If you have a specific interest, there is a position within nursing that will fit your needs. Like Computers?  Check out Nursing Informatics.

Looking to take a step towards becoming a doctor?

Check out graduate nurse practitioner programs. Live for excitement? Try Flight Nursing.  Want to focus on mind/body?  See what Holistic Nursing is all about. Love the elderly? Long Term Skilled Care might be just what you’re looking for.

Already a nurse?  

It can be a bit daunting when you begin thinking about a career change in nursing.  The following articles can help lessen the stress of finding your new niche and help ease the transition by providing you the tools needed to determine where you want to go in Nursing.

Erica MacDonald of SelfEmployedNurse.com explores some of the reasons that nurses choose to change careers.  She further discusses Self-Reflection as a way and means to assist the nurse with the “Big Switch”. Have you done any self-reflection lately?

Are you feeling trapped and looking for a change? Kevin Ross, RN, BSN gives a few easy steps to take to help make your career transition a success at: Facilitating A Career Change.

If you are looking for some inspiration, Jennifer Olin, RN provides an excellent personal example of a nurse that took advantage of the opportunities available and completely turned her career around at: RN Career Path Can Take Many Interesting Turns.

‘Jo, RN’ is the author of the wildly popular nurse blog, Head Nurse.  She writes at Scrubs Magazine with advice on figuring out where you belong and more importantly figuring out if your chosen specialty is the best fit at: Is your nursing job right for you?.

Experiencing burnout? No longer happy or healthy in your work, maybe it’s time to change. Elizabeth Scala explores several ways in which you can ensure a smooth transition at: Change Your Nursing Career the Easy Way.

Nurse Gail talks about her dramatic career change from ‘jet-setter to nurse’ at Second Career Nurses.


This post is a collective effort of nurse bloggers as part of the Scrubs Mag Blog Carnival


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