|Travel Nursing Tax Advantage
To participate in the Tax Advantage Program
you need to maintain a residence as a renter or owner in
your permanent resident location and state with associated
expenses and be working away from this residence on a
temporary assignment living in a separate temporary
residence. This permanent residence is called a Permanent
Tax Home as defined by the IRS.
Tax Advantage programs allow you to receive a tax free
reimbursements to cover meals & incidentals and lodging
expenses or to receive tax free Health Force supplied
You should have connections to this address such as: Drivers
License, Insurances, Professional License, Voters
Registration, Property Taxes and other various bills
connected to the Permanent Tax Home. It is advisable to
return there between assignments if possible, apply for jobs
there, do business there, even work there if possible.
Generally if you reside in another state or same state,
different location, for more than a year you can lose your
Permanent Tax Home status. Keep documentation of these
activities to keep the information organized and easily at
hand if you needed it. Health Force will just have you fill
out a form verifying you Permanent Tax Home.
Health Force will give you a tax free reimbursement per day
that you are on an assignment staying in temporary housing
away from your Permanent Tax Home (Meals & Incidentals and
Lodging or Company supplied Tax Free Housing). This per day
reimbursement is different where ever you go. The Federal
Government has a web site,
Domestic Per Diem Rates - US
General Services Administration that supplies
The rates on this website are in reality reimbursements
figured for government employees traveling to, staying in
hotels and/or eating in other cities for work purposes. The
costs a Traveler will incur on a daily basis may not be as
much depending on various factors generally because the
Traveler is usually staying at least 3 months and buying
groceries mostly instead of eating out for every meal. That
could be different if you are on a short term contract such
as a Strike.
Some Travel Nurse Agencies may not use the max rate all the
time unless it reflects more in reality the true costs. This
Tax Free Reimbursement is separate from your Pay Rate which
Some Travel Nurse Companies that are new to this get
confused and think the reimbursement is per day that you
work but that is wrong. It is per day that you are on
assignment residing in that area in temporary housing away
from your Permanent Tax Home.
There is no 50 or 80 mile radius rule with the IRS. Those
rules are more so rules with Travel Nursing Companies and/or
Hospitals to set some standard for being away from home or
to prevent perm or potential perm staff in the area from
converting to Travelers (Hospital Rule).
Travel Nursing Agencies if they are supplying temporary
housing will only use the the meals and incidentals max rate
to figure the tax free reimbursement although you will not
be taxed for your housing supplied.
If you are receiving a housing stipend instead of Health
Force supplying the housing, the Health Force will use both
the per day Lodging Rate and the per day Meal & Incidentals
rate to calculate your total tax free reimbursements
depending on how those rates reflect true costs for you in
Below are some examples of how some companies figure Tax
Government site reports a per day rate for Meals &
Incidentals of $25/day for a certain locale.
They are saying the maximum you would spend per day for
Meals & Incidentals is $25
$25/day X 7 days = $175/week $25 X 30 = $750/ month (Tax
Alot of Travel Nursing Companies will also figure it into a
virtual pay rate to see the actual value that you get in
terms of $'s/hour.
Let's say you work 36 hours/week with a pay rate of $28/hour
and you get $475/week in tax free reimbursements (Meals &
Incidentals + Housing Stipend for this example)
$475/week divided by 36 hours/week worked
= $13.19/hr Virtual pay rate
$28/hr Actual Pay Rate + $13.19/hr Virtual pay rate
= $38.19/hr (Actual pay rate + Virtual pay rate)
This is only a way to for you to see total value. Your pay
check stub or contract should avoid the above language
because tax free reimbursements are not pay rates.
If you are supplied housing by the Travel Nurse Company you
could still convert it to a virtual pay rate if you know the
housing costs + meals and incidentals reimbursement.
If you were Not a Tax Advantage Traveler you would have to
pay taxes on your supplied housing or housing stipend and
you could not receive Meals & Incidental Tax Free
If you are NOT offered the Tax Advantage Program but you DO
maintain a Permanent Tax Home you can deduct expenses that
are above what is covered by the Travel Nursing Agency at
the end of the year so keep a record of these expenses and
Even as a Tax Advantage Traveler you need to keep track of
reasonable expenses above what is covered by the Travel
Nursing Company such as Medical Expenses, Travel Costs,
Mileage to location, Mileage to and from Facility from
Temporary Housing times number of trips.
When you deduct these things the dollar amount that ends up
in your tax return is not as much as you would get receiving
the Tax Advantage tax free reimbursements. That is why
people are are attracted to Tax Advantage Programs.