The tax code is difficult to keep up with. It doesn’t help that the tax system is constantly changing. For a travel nurse, there have always been tax write-offs called travel deductions. Knowing some of the common travel nursing tax write-offs can help you lessen the amount of taxes you need to pay during tax season.
In order to claim travel expenses, you will need to establish a tax home or a fixed home. This is the home you pay mortgage or rent for. Additionally, this is where you pay upkeep and utility costs. Your fixed home is where you return between jobs as a travel nurse unless you are working in a location for more than 12 months. In order to prove the existence of your tax home, you must keep copies of your mortgage or rent documents, maintain your driver’s license in your home state, maintain your car registration in your home state, register to vote in your home state, and/or file your taxes in your home state.
Travel Nursing Housing Write-Offs
Typically, the company you work for as a travel nurse will pay an allowance so that you can secure temporary housing. However, sometimes, the lodging allowance you receive can be lower than the actual cost of lodging. If you have a valid tax home, the expenses you sustain for lodging are deductible.
Each day you are away for a business, you are able to deduct a meal per diem. This form of “per diem” is not the same as working on a per diem basis. Instead, it is the standard rates for lodging and meals that are published by the government. You are able to use the standard meal rate as your deduction.
One of the biggest aspects of travel nursing is the traveling they do. Transportation is a big deal for a traveling nurse. Luckily, the expenses for airline tickets, train fare, bus fare, boat fare, and car-related expenses are all deductible. Staffing agencies may offer travel pay to counterbalance your travel expenses, but the amount of travel pay is usually capped and does not cover the entire amount of deductible expenses.
Keeping Track of Receipts
In order to prove that you qualify for travel nurse deductions, you need to prove that you actually paid for deductible services. This means keeping your receipts or, at least, keeping track of what you have paid for. The easiest way to do this is by keeping a spreadsheet that documents every expense you have paid while traveling. Many nurses use tax preparation software programs such as QuickBooks or Turbo Tax.
Quality Travel Nursing Opportunities
Currently, travel nurses are in high demand. If you are seeking work as a travel nurse, New Directions Staffing offers unmatchable benefits and compensation, choice assignments across the nation, and travel dialysis nurse jobs. When you are on the road with New Directions Staffing, you are not alone. We offer support and resources to make sure you never feel like you are alone or without guidance. To work for us as a travel nurse, all you need to do is head over to our website. From there, you will either submit your resume or search for a specific job of your liking to apply to. New Directions Staffing cannot wait to help you get on the road as a travel nurse!