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Travel Nursing: Tax Home vs. Permanent Residence
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C. Mike Emery, RN, CEO
C. Mike Emery is a Registered Nurse and the co-founder and Chief Executive Officer of Expedient Medstaff. Expedient Medstaff is a travel nursing company that offers amazing travel nursing assignments in beautiful locations throughout the United States.
Mike has been working in the healthcare staffing sector since 1990. He lives in Michigan with his wife, Lynn, and two boys, Jacob and Kyle.
You can find C. Mike Emery’s blog and website at ExpedientMedstaff.com.
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C. Mike Emery, RN, CEO
Travel nursing has many perks. In addition to beautiful locations, elegant housing, awesome hospitals, and more nursing jobs than you have probably ever imagined, there is also tax free money. Tax free money is considered by some to be the biggest perk in travel nursing. However, not all nurses qualify to receive tax free money…legally. So what makes one nurse qualify when others do not? The simple determination is whether or not the nurse has a tax home or permanent residence. To help you better understand what each is and the difference, please read the following definitions and examples:
What is a tax home?
Broadly speaking, the definition of “tax home” is the home you return to on a regular basis where you incur substantial and recurring expenses. You should also have strong legal & historical ties. These might include: driver’s license, voter registration, banking, car registration, and mail delivery.
Example 1: Jane Homeowner, RN has a 1400 sq. ft home in North Carolina. She has a mortgage that she pays every month and has cancelled checks to back up her financial expenses of this home. When Jane travels, the expenses to keep this home remain. She pays the mortgage regardless if she is there or not. This is her tax home because when she travels, she will have a duplication of expenses. Therefore, she will be entitled to tax free reimbursements.
Example 2: John Renter, RN has a one bedroom apartment in Florida which he pays monthly rent in exchange for the dwelling. He also has cancelled checks, money order receipts, and a lease in his name to demonstrate he pays for the expense of this apartment. As John travels, he will still be responsible to pay for the rent on this apartment. This is his tax home because he will have a duplication of expenses when he travels. Therefore, he is entitled to tax free reimbursements.
Example 3: Robin Sharehouse, RN rents a home and has a room mate. The monthly rent is $1500 and she is responsible for half, or $750. She has proof such as a rental lease in her name, cancelled checks, money order receipts, and some paid in cash receipts, that she maintains a portion of this dwelling. When Robin travels, she is still financially responsible for her share of the dwelling. This is her tax home because she will have a duplication of expenses while she travels. Therefore she will be entitled to tax free reimbursements.
opaler
almost 2 years ago
18 comments
Many young nurses live in a tax home because they can't afford a permanent residence, but this isn't always the case. I've also met an experienced nurse whose son worked at san jose junk removal and had a substantial salary but still chose to live in a tax home. It is usually worth having a permanent residence for a married couple where both are working.
reggis
almost 2 years ago
28 comments
I didn't know they have these options for nurses, the tax free reimbursements seem like the fair thing to do, I am glad the nurses can benefit from this. That explains why I nurse I knew only recently was interested in finding Gainesville homes for rent, I helped her with some information.
ChristineRN
almost 5 years ago
8 comments
Wow! This is a good article. In the near future I will travel between the city I live in and Chicago for work and will need an apt. I did not know about this.