How Taxes Work as a Travel Nurse: Answering Travel Nurse Tax Questions

As a travel nurse, you take assignments from different areas of the country, meeting new people while developing new skills. One of the less glamorous aspects of travel nursing is navigating taxes. As a travel nurse with Barton Healthcare Staffing, you’re not an independent contractor—but your taxes can differ slightly from a nurse working at a permanent job.

The good news is that you don’t have to be a tax expert—in fact, we recommend working with someone who is! However, it’s good to know the basics when it comes to your taxes and have a good understanding of how they work in your career. 

We’re going to answer some of your travel nurse tax questions, but make sure you’re getting your advice from a licensed tax professional.

How to File Taxes as a Travel Nurse

As a travel nurse with Barton Healthcare Staffing, you are not an independent contractor—which means that you essentially follow the same tax rules as any typical person in a permanent position. This means that unlike a 1099 contractor, you don’t have to worry about filing estimated quarterly taxes. 

Instead, you’ll receive a W2 from your employer detailing your taxable income, which you need to use to file your taxes by the April 15 deadline. With all of your W2s in hand, along with any other tax document that is relevant such as receipts or proof of health insurance, you can use any popular tax software, such as TurboTax or H&R Block to file your taxes. Alternatively, you can hire a professional to help file your taxes.   

Tax-Free Stipend for Travel Nurses: How Does It Work?

In most cases, your total income is made up of your hourly base pay as well as some reimbursements. Your hourly pay is the taxable part of your income, and the reimbursements you get are non-taxable, but only if you correctly identify a tax home to the IRS (more on that later). Both of these make up your travel nursing package.

It’s your hourly pay plus the added stipends that make travel nursing a financially desirable career. These stipends are the fixed amount of money that is paid out all at once to cover certain expenses such as housing. Reimbursements are work-related expenses that your employer reimburses you for. Both stipends and reimbursements include:

• Housing stipend
• Meals
• Incidentals such as Uber rides and parking fees
• Travel expenses
• Benefits such as paid time off, medical insurance, and bonuses

These stipends are enticing, but they can cause some issues if you need a loan from the bank or need to qualify for a mortgage. Since these are income-based, it can appear on paper that you have a lower income than what you really have since stipends aren’t reflected in your annual pay.

You can work around this by planning ahead and explaining your situation to lenders that you work as a travel nurse, or make sure to work with someone who understands how travel nurse income works. Be sure to talk to your travel nurse agency to learn about what they reimburse for.

Understanding Your Travel Nurse Tax Home

You must have a tax home if you want to take advantage of non-taxable benefits from your pay package. Essentially, your tax home is your permanent home, the place you return to after an assignment is completed and before you move on to the next. If you don’t have one, your stipends will all be taxed.

This tax home is important to the IRS and you can qualify by making sure you visit this residence at least once a year and prove you pay for that primary home. This might mean showing proof of a mortgage/rent or other proof that someone else is maintaining that residence. Try not to take assignments that will last for 12 months in a 24 month period. You want to ensure you’re still spending time in your tax home so it doesn’t look like you are living somewhere else.

The idea of a tax home can be confusing. Of course, once you get used to the concept, you can really enjoy your travel career by taking assignments all over the country.

Are There Tax Deductions for Travel Nurses?

Tax reform laws that went into effect in 2022 limit the travel-related expenses travel nurses can deduct on federal returns, such as food, mileage, and gas. 

Some states, however, have different rules than the federal government. For example, New York, California, Hawaii, and Alaska, are a few states that allow travel nurses to file job expense deductions on a state tax return. If you worked in any of these states and are submitting a resident or non-resident tax return, look into if you can take advantage of any tax deductions. 

What if You’re Audited as a Travel Nurse?

Luckily, you’re in a field that doesn’t get audited often, but it’s a good idea to act as if you could be. Reduce your chances of an audit by making sure you have a tax home.

Keeping your paperwork organized in one place is another thing that can help if in the instance you do get audited. If you get digital copies of receipts or other documents, you may still want to print them out. This goes for your receipts as well. You will want to keep receipts such as:

• Housing utilities
• Meals
• Mileage
• Continuing education fees
• Certification or licensing fees
• Work attire expenses such as scrubs
• Any lodging while you’re traveling

Know where your paperwork is for proving you have a tax home and are paying for living expenses in multiple states. Make copies of your rent or mortgage payments to your permanent home and your housing while on assignment. Keep copies of work contracts as well.

You may also want to consider working with a licensed tax professional who can answer your questions and make sure you’re following the IRS rules for taxes for travel employees. If you feel anxious or overwhelmed figuring out how your taxes work, there are plenty of qualified tax advisors who can help. Your travel nurse agency can be a great resource to answer many of your work-related questions, but when it comes to taxes, get your advice from a professional.

Ready to go on assignment? Contact the Barton Healthcare Staffing team today to get started!

Editor’s Note: This article was originally written by Risa Kerslake, RN, in February 2022, and was updated by Mike Connors in April 2024 to reflect updated information.