If you’re diving into the world of travel healthcare, you’ve probably heard that taxes get a little trickier than your typical staff job. That’s because travel nursing and taxes—and allied healthcare taxes—don’t follow the one-size-fits-all approach.
From figuring out which parts of your paycheck are taxable to knowing what you can write off, there’s a lot to consider. But don’t worry—we’re going to walk you through it all in plain English, no tax degree required.
If you’re just getting started in this career, check out our page on travel RN careers for more info on what your options are and where the road might take you.
Why Travel Nursing and Taxes Don’t Work Like Staff Healthcare Jobs
When you’re a traveler, your income may come from multiple states. You could be earning tax-free stipends for housing and meals. You might have both W-2 and 1099 income in the same year. It’s no wonder so many travelers end up scratching their heads come tax season.
Unlike staff professionals, travel RNs and allied clinicians get paid a base wage that’s taxable—plus a bunch of non-taxable stipends and reimbursements if you qualify. Those tax-free perks are awesome, but they come with strings attached. Understanding how this works helps you keep more money in your pocket and avoid big tax surprises.
What You Need to Know About Travel Healthcare Taxes
Let’s start with the basics. Your pay as a travel nurse or allied health professional usually breaks down like this: taxable hourly rate, non-taxable stipends (like housing or meals), and maybe some bonuses or reimbursements. The IRS treats each of these differently, so it’s important to keep your pay stubs and contracts organized.
IRS guidelines make it clear—you can’t just claim tax-free money unless you meet the criteria. This is where the concept of a tax home comes in.
Your Tax Home and Why It Matters
A tax home is your permanent residence—the place you return to in between assignments. If you don’t maintain a tax home, all those non-taxable stipends suddenly become taxable income. Ouch.
To keep your stipends tax-free, you generally need to:
- Keep a residence where you pay rent or a mortgage year-round
- Return to that home in between assignments
- Have records that show you live there (utility bills, voter registration, etc.)
Failing to meet these requirements could result in the IRS taxing your entire travel income, which means a big hit to your wallet.
Do Travel Healthcare Workers Pay Taxes in Both States?
This is a common question—and the answer is yes, often they do. If you worked in multiple states during the year, you’ll likely need to file a tax return in each of those states. This can feel overwhelming, but it’s doable with a little organization or the help of a tax pro.
Let’s say you worked in Texas and then took an assignment in Wisconsin. You’d file a state return for Wisconsin, and even though Texas doesn’t have state income tax, you’ll still report your federal income from both states. You can find current openings on our Texas travel nursing assignments and Wisconsin travel nursing jobs pages if you’re planning your next move.
Travel Nurse & Allied Tax Rules You Can’t Ignore
When it comes to travel nurse tax rules (and allied, too), there are a few key ones to keep in mind:
- You must have a legitimate tax home to receive non-taxable stipends
- You can’t work in the same metro area for more than 12 months (the “one-year rule”)
- You need to keep receipts and records for expenses you want to deduct
This last point ties into the travel nurse 30 day rule, which says if you’re away from your tax home for less than 30 days, your assignment may not count as “travel” in the IRS’s eyes—and you may not be eligible for certain tax-free benefits.
Tax Benefits of Travel Nursing (and Allied) That Can Save You Money
Now for the good stuff. Tax benefits of travel healthcare jobs include generous housing stipends, meal allowances, travel reimbursements, and tax write-offs if you’re paying out-of-pocket. These perks are a big reason why travel professionals can make significantly more than regular staff workers. You can see a full breakdown on our travel nurse salary vs regular nurse comparison guide.
When it comes to travel nursing and taxes, understanding which parts of your compensation are taxable (and which aren’t) can seriously impact your bottom line.
Tax Deductions for Travel Healthcare Workers You Might Be Missing
One of the most overlooked parts of filing taxes as a travel nurse or allied traveler is knowing which tax deductions actually apply. If you’re operating under a 1099 (as an independent contractor), you can deduct things like mileage, scrubs, licensing fees, continuing education, and even portions of your cell phone bill if you use it for work.
If you’re W-2, deductions are a little tighter post-2018 tax reform—but you might still be able to deduct moving expenses, travel mileage (if not reimbursed), and meals, depending on your situation.
Pro tip: Keep a folder (physical or digital) with receipts, contracts, and travel logs. You’ll thank yourself later.
Tax Write-Offs for Travel Nurses and Allied Pros: What Counts?
Not every expense is a tax write off for travel nurses, but here’s what usually qualifies (especially for 1099 workers):
- Travel to and from assignments
- Lodging (if not covered)
- Uniforms and shoes
- CEU courses
- License renewals
The IRS wants proof, so tracking your expenses is non-negotiable. Apps like Expensify or QuickBooks Self-Employed can help keep it all straight.
Travel Nurse Stipends and Taxes: What’s Actually Taxable?
Let’s talk stipends. Your housing, meals, and incidental stipends can be tax-free—if you qualify. But if you don’t have a legitimate tax home, or if your assignment goes over 12 months, those stipends could be considered income and taxed accordingly.
This is where travel nursing and taxes can get complicated fast. Knowing the rules ahead of time helps you avoid any surprises—and keeps more of your paycheck where it belongs.
Filing Taxes as a Travel Nurse or Allied Professional Without Losing Your Mind
Filing doesn’t have to be a nightmare. Here’s what you’ll need:
- All W-2s and 1099s from your agencies
- Receipts for travel-related expenses
- Documentation for your tax home
- State residency info for each location you worked in
Whether you file yourself or hire a CPA, the more organized you are, the easier it’ll be. Don’t forget to read the IRS guidelines for travel nurses if you’re unsure about specific rules.
Travel Nursing Tax Rules Are Changing: Stay Updated
Tax laws shift every few years, so what was deductible one year might not be the next. Staying up-to-date on travel nursing tax rules helps you avoid nasty surprises. Bookmark your state tax department’s site and keep tabs on IRS changes.
You can also learn from your peers. When you’re on assignment, talk to other travelers about how they’re handling taxes. Everyone does it a bit differently, and you might pick up tips you hadn’t considered.
Where You Work Matters (Tax-Wise and Otherwise)
Not all states tax income the same way. Some states don’t have any income tax at all, like Florida and Texas. Others are known for high tax rates but offer better reimbursement rates or benefits. If you’re still figuring out your next destination, check out our guide on the best state to be a nurse to help you choose based on lifestyle, salary, and tax impact.
Conclusion: Travel Nursing and Taxes Are Manageable—With the Right Info
It might seem overwhelming at first, but getting a grip on travel nursing and taxes is 100% doable. Whether you’re a spreadsheet kind of person or you outsource it all to a tax pro, the key is staying organized and proactive. Remember, the money you save on taxes is money you keep for the adventures ahead.
FAQs About Allied & Travel Nursing and Taxes
Do travel nurses get taxed on stipends?
Not if they qualify. Housing and meal stipends can be tax-free if you have a legitimate tax home and your assignment meets IRS criteria.
Can I file taxes myself as a travel nurse?
Yes, you can. But if you’ve worked in multiple states or had both W-2 and 1099 income, it’s smart to get help from a tax pro who understands travel nursing.
What is the “30 day rule” for travel nurses?
If you’re away from your tax home for fewer than 30 days, the IRS may not consider your assignment “travel,” which can affect your eligibility for tax-free stipends.
What are common tax write-offs for travel nurses?
Travel expenses, licensing fees, CEUs, and scrubs are common—especially for 1099 nurses. Just make sure you keep your receipts.
Do I really need to file taxes in every state I worked in?
In most cases, yes. If the state has income tax and you earned money there, you’ll likely need to file a return.
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