Travel Nurse Tax Deductions: The Complete List for 2026

Introduction: Keeping More of What You Earn

Disclaimer: This guide is for educational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance on your specific situation.

Most travel nurses leave money on the table at tax time. Some miss legitimate deductions they did not know existed. Others assumed deductions were available that actually went away years ago. And a surprising number simply do not track their expenses throughout the year, leaving their CPA with nothing to work with when April rolls around.

The tax landscape for travel nurses changed dramatically after the Tax Cuts and Jobs Act of 2017 (TCJA). That law eliminated the ability for W-2 employees to deduct unreimbursed business expenses on their federal tax return. Since most travel nurses are W-2 employees of their staffing agency, this was a significant hit. Many deductions that nurses had relied on for years — mileage, scrubs, licensing fees — vanished overnight for W-2 workers.

But deductions did not disappear entirely. Some deductions remain available to all travel nurses regardless of employment status. And if you work as a 1099 independent contractor (less common but not unheard of in travel nursing), you have access to a much broader set of deductions.

This article lays out every deduction category, explains who qualifies, and gives you a practical system for tracking and claiming what you are owed.

The 2017 Tax Law Change: What Travel Nurses Need to Know

The TCJA suspended the miscellaneous itemized deduction for unreimbursed employee expenses from 2018 through 2025. Congress extended certain provisions, and the status of these deductions continues to evolve. As of 2026, the suspension is set to expire, and some employee expense deductions may be reinstated. Check with your CPA for the most current rules.

Here is what this means in practical terms:

For W-2 travel nurses (the majority): Prior to 2018, you could deduct unreimbursed expenses like mileage, licensing fees, scrubs, and continuing education on Schedule A as miscellaneous deductions (subject to a 2% AGI floor). The TCJA eliminated this. The deductions discussed in the “1099 nurses” section below are not available to W-2 nurses on their federal return unless the law changes.

For 1099 independent contractor travel nurses: You file Schedule C (Profit or Loss from Business) and can deduct legitimate business expenses against your self-employment income. Your deduction options are significantly broader.

For all travel nurses: Some deductions remain available regardless of your W-2 or 1099 status, including retirement contributions, health insurance premiums (in some cases), and student loan interest.

State-level deductions: Several states did not conform to the TCJA and still allow unreimbursed employee expense deductions on state returns. If you work in one of these states, you may be able to claim deductions on your state filing that are not available federally. This is one of many reasons working with a CPA who understands multi-state filing is so valuable.

Deductions Available to ALL Travel Nurses (W-2 and 1099)

These deductions are available regardless of whether you are classified as a W-2 employee or a 1099 contractor.

State and Local Taxes (SALT)

If you itemize your federal return, you can deduct state and local income taxes you paid during the year, up to the $10,000 SALT cap established by the TCJA. For travel nurses who work in multiple states and pay income tax in several jurisdictions, this deduction can be valuable.

Multi-state filing gets complicated quickly. You may owe tax in your tax home state, your assignment state, and potentially other states you worked in during the year. Each state has its own rules about credit for taxes paid to other states. This is one area where a travel-nurse-savvy CPA earns their fee many times over.

The decision to itemize versus taking the standard deduction depends on whether your total itemizable deductions (SALT, mortgage interest, charitable contributions, etc.) exceed the standard deduction, which is $15,000 for single filers and $30,000 for married filing jointly in 2026. Many travel nurses find that the standard deduction is larger, especially if they do not own a home.

Retirement Contributions

Retirement contributions offer some of the most impactful tax savings available.

Traditional IRA: You can deduct contributions to a traditional IRA up to $7,000 per year ($8,000 if you are 50 or older) if you meet income and coverage requirements. If you are covered by an employer retirement plan (some agencies offer 401(k) plans), the deduction may be limited or phased out at higher income levels.

SEP-IRA (1099 nurses only): If you are a 1099 contractor, a SEP-IRA allows you to contribute up to 25% of your net self-employment income, up to $69,000 in 2026. This is one of the most powerful tax reduction tools available to self-employed nurses.

401(k) through your agency: Some staffing agencies offer 401(k) plans with employer matching. Contributions reduce your taxable income dollar-for-dollar up to $23,500 in 2026 ($31,000 if you are 50 or older). If your agency offers a match, take it — it is free money.

Health Insurance Premiums

If you are not covered by an agency health plan and purchase your own health insurance through the marketplace or elsewhere, you may be able to deduct your premiums.

Self-employed health insurance deduction (1099 nurses): You can deduct 100% of your health insurance premiums as an above-the-line deduction, which means it reduces your adjusted gross income even if you do not itemize.

HSA contributions: If you have a high-deductible health plan (HDHP), you can contribute to a Health Savings Account. HSA contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free. The triple tax advantage makes HSAs one of the best financial tools available. The 2026 contribution limit is $4,300 for individual coverage and $8,550 for family coverage.

Student Loan Interest

You can deduct up to $2,500 in student loan interest per year, regardless of whether you itemize. This is an above-the-line deduction that directly reduces your adjusted gross income. The deduction phases out at higher income levels (modified AGI above $80,000 for single filers and $165,000 for married filing jointly in 2026).

For travel nurses still paying off nursing school loans, this deduction provides meaningful relief, especially in early career years when loan balances are high.

Deductions for 1099 / Independent Contractor Travel Nurses

If you work as a 1099 independent contractor, you report your income and expenses on Schedule C. The following deductions apply to you. These are not available to W-2 travel nurses on their federal return (though some may be available on state returns in states that did not adopt the TCJA changes).

Licensing and Certification Fees

Every dollar you spend on maintaining your professional credentials is deductible:

State nursing license fees — including application fees, renewal fees, and endorsement fees for additional states
Compact license fees — the Nurse Licensure Compact (NLC) license costs
Specialty certifications — CCRN, CEN, CNOR, RNC-OB, and other specialty credentials
BLS, ACLS, PALS renewal fees — required certifications for most assignments
Continuing education (CEU) costs — courses, webinars, and conference registrations required to maintain your license

Travel Expenses

Travel between your tax home and your assignment location is a significant deductible expense for 1099 nurses.

Mileage: You can deduct mileage at the IRS standard mileage rate (67.5 cents per mile in 2026) for driving between your tax home and assignment locations. For a nurse who drives 800 miles each way to an assignment and returns home between contracts, this adds up quickly. Keep a mileage log — apps like MileIQ or Everlance can automate this.
Flights: Airfare to assignment locations is fully deductible.
Rental cars: If you need a rental car at your assignment location, the cost is deductible.
Tolls and parking: Both are deductible when related to assignment travel.

The key requirement is that the travel must be between your tax home and your assignment location. Local commuting from your temporary housing to the hospital is generally not deductible.

Housing at Assignment Location

For 1099 nurses who do not receive a housing stipend (or whose stipend does not cover full costs), temporary housing at the assignment location is deductible:

Rent for temporary apartments or rooms
Extended-stay hotel costs
Airbnb or short-term rental costs
Security deposits (if not refunded)
Utilities at your temporary housing

Keep all receipts and lease agreements. Document the dates of each assignment and the corresponding housing costs.

Uniform and Work Supplies

Clothing and equipment required for your work that is not suitable for everyday wear is deductible:

Scrubs and lab coats — must be required by the facility and not suitable for general use
Stethoscopes and medical instruments — including replacements and repairs
Nursing shoes — if required specifically for clinical work
Badges, badge holders, and accessories — including badge reels, pen lights, and trauma shears
Laundering costs for uniforms — you can deduct the cost of washing and dry cleaning work-specific clothing

Continuing Education

Beyond the CEU costs mentioned above, broader educational expenses are deductible for 1099 nurses:

Nursing conferences and their associated registration fees
Travel to conferences (airfare, hotel, meals at the conference)
Professional books, journals, and subscriptions
Online learning platform subscriptions used for professional development
Study materials for certification exams

Professional Expenses

Various professional costs are deductible:

Union dues if you are required to join a union at your assignment facility
Professional organization memberships — ANA, specialty nursing organizations, local nursing associations
Resume preparation services — professional resume writing or career coaching
Background check fees — required for most travel nurse assignments
Drug screening fees — pre-employment and random drug tests
Credentialing costs — fees for skills assessments, competency testing, and credential verification

Technology and Communication

If you use personal devices for work-related purposes, you can deduct the business-use percentage:

Cell phone — deduct the percentage used for work calls, agency communication, and professional purposes
Internet — deduct the percentage used for work-related activity (charting training, online modules, recruiter communication)
Computer or tablet — if used for completing onboarding modules, charting education, or other work functions
Professional apps and software — scheduling apps, medical reference apps, expense tracking tools

Be honest about the business-use percentage. If you use your phone 30% for work and 70% for personal use, deduct 30%.

Insurance

Malpractice insurance premiums — many travel nurses carry their own malpractice policy in addition to any coverage provided by the agency. The premiums are fully deductible.
Business liability insurance — if you carry general liability coverage for your nursing practice

Deductions That Are Commonly Misunderstood

Several expenses frequently cause confusion. Here is what you need to know:

Meals: For 1099 nurses, meals while traveling between your tax home and assignment are generally 50% deductible. Meals during your regular shifts at the hospital are not deductible — that is just your lunch, and the IRS does not consider it a business expense. The “travel meal” deduction only applies when you are traveling away from both your tax home and your assignment location.

Home office deduction: This rarely applies to travel nurses. To claim a home office, you need a dedicated space used regularly and exclusively for business. Since your work happens at hospitals and healthcare facilities, most travel nurses do not qualify. If you do significant administrative or business-development work from a dedicated home office space, consult your CPA.

Moving expenses: The TCJA eliminated the moving expense deduction for most taxpayers. The only exception is active-duty military members. Travel to your assignment location is not a moving expense — it is a travel expense (deductible for 1099 nurses as described above).

“Tax home” maintenance costs: The costs of maintaining your tax home (rent, mortgage, utilities) are personal living expenses, not business deductions. You cannot deduct your home mortgage just because you are maintaining a tax home. However, having a tax home is what makes your stipends tax-free, which is far more valuable than any deduction.

Stipends: Stipends are not deductible because they are not expenses — they are reimbursements you receive. You do not include tax-free stipends in your income, and you do not deduct them as expenses. They are simply excluded from taxable income when you have a qualifying tax home.

How to Track and Document Deductions

The best deduction strategy in the world is worthless if you cannot prove your expenses. Here is the tracking system I recommend:

Use a dedicated expense-tracking app. Apps like Expensify, QuickBooks Self-Employed, or a simple spreadsheet let you categorize expenses in real time. Snap photos of receipts immediately — paper receipts fade, and you will not remember what a $47 charge was for eight months later.

Keep all receipts digitally. The IRS accepts digital copies of receipts. Take a photo or scan every receipt related to a potential deduction and save it in a folder organized by tax year and category (licensing, travel, supplies, etc.).

Maintain a mileage log. If you deduct mileage, the IRS requires a contemporaneous log showing the date, destination, purpose, and miles driven. Mileage tracking apps automate this. Start using one on day one of your travel nursing career.

Separate business and personal finances. Use a dedicated credit card or bank account for all work-related expenses. This makes it dramatically easier to identify deductible expenses at tax time and provides clear documentation if you are ever audited.

Do a quarterly review. Set a calendar reminder to review your deductions every three months. This prevents the year-end scramble of digging through twelve months of transactions and ensures you are not missing categories.

Retain records for the right period. The IRS generally recommends keeping tax records for three years from the date you filed. However, if you underreported income by more than 25%, they can go back six years. If you filed a fraudulent return or did not file at all, there is no time limit. To be safe, keep records for at least seven years.

State-Specific Deduction Opportunities

Even when federal deductions are limited for W-2 nurses, state-level deductions can still provide meaningful tax savings.

Several states did not conform to the TCJA elimination of unreimbursed employee expenses. As of 2026, states that still allow these deductions on state returns include (but may not be limited to) California, New York, New Jersey, Pennsylvania, Minnesota, and Arkansas. If you worked in any of these states, you may be able to deduct licensing fees, travel costs, scrubs, and other unreimbursed employee expenses on your state return.

Multi-state filing creates additional complexity and potential opportunity. When you work in multiple states, you may be able to claim deductions in states where you earned income, even if those deductions are not available federally. A CPA who specializes in travel nursing and multi-state filing is essential for navigating these rules.

States with no income tax (Texas, Florida, Nevada, Tennessee, Washington, Wyoming, South Dakota, Alaska, and New Hampshire for wages) do not offer state-level deductions because there is no state income tax to deduct against. But the absence of state tax is itself a major financial benefit.

How to Claim Your Deductions

Standard Deduction vs. Itemizing

For W-2 nurses, the decision to itemize or take the standard deduction comes down to math. Add up all of your itemizable deductions (SALT, mortgage interest, charitable contributions, medical expenses above 7.5% of AGI). If the total exceeds the standard deduction ($15,000 single / $30,000 married filing jointly in 2026), itemize. If not, take the standard deduction.

Most W-2 travel nurses without a mortgage find that the standard deduction is larger. That is fine — the real tax benefit for W-2 travel nurses comes from tax-free stipends, not from itemized deductions.

Schedule C for 1099 Nurses

If you are a 1099 contractor, you file Schedule C (Profit or Loss from Business) with your federal return. This is where you report all of your nursing income and deduct all of your business expenses. Your net profit from Schedule C flows to your Form 1040 and is subject to both income tax and self-employment tax (15.3% for Social Security and Medicare).

Estimated Quarterly Tax Payments

1099 nurses do not have taxes withheld from their paychecks, so you must make estimated quarterly tax payments to avoid underpayment penalties. Payments are due in April, June, September, and January. Use Form 1040-ES to calculate your quarterly payments, or have your CPA do it. Falling behind on quarterly payments results in interest and penalties that eat into your earnings.

Software and Tools for Filing

For straightforward W-2 filings, tax software like TurboTax or H&R Block can handle single-state or even simple multi-state returns. However, travel nurses with complex multi-state situations, 1099 income, or significant deductions should strongly consider working with a CPA who specializes in travel nursing. The cost of a good CPA ($300-$800) is typically recovered many times over in deductions found and errors avoided.

FAQ: Travel Nurse Tax Deductions

Can I deduct my housing if I take the stipend?

If you receive a tax-free housing stipend, you cannot also deduct your housing costs as a business expense. The stipend is already a tax-free reimbursement for that expense, so deducting it would be double-dipping. If you are a 1099 nurse who does not receive a housing stipend, or if your stipend does not fully cover your housing costs, you may be able to deduct the unreimbursed portion. Consult your CPA for guidance specific to your situation.

Are scrubs tax-deductible?

For 1099 nurses, yes — scrubs, lab coats, and other work-specific clothing that is not suitable for everyday wear are deductible as a business expense on Schedule C. For W-2 nurses, scrubs are generally not deductible on your federal return under current law (post-TCJA). However, some states still allow this deduction on state returns. Check whether your assignment state conforms to the TCJA or retains the employee expense deduction.

Can I deduct my car payment?

You cannot deduct your car payment directly. However, 1099 nurses can deduct the business use of their vehicle using either the IRS standard mileage rate or the actual expense method (which includes depreciation, insurance, gas, and maintenance prorated by business-use percentage). The standard mileage rate is simpler and works well for most travel nurses. Note that you cannot use both methods simultaneously, and once you choose actual expenses for a vehicle, you generally cannot switch to the standard mileage rate for that vehicle later.

What if I forgot to track mileage?

If you did not keep a contemporaneous mileage log, you are in a tough spot with the IRS. However, you may be able to reconstruct your mileage using Google Maps, contract start and end dates, assignment addresses, and your travel history. The reconstructed log is not as strong as a real-time log, but it is better than nothing. Going forward, start using a mileage tracking app immediately. It takes seconds to set up and saves you from this problem in future years.

Do I need receipts for everything?

The IRS does not require receipts for expenses under $75 (except for lodging, which always requires documentation regardless of amount). However, best practice is to keep receipts for everything. A receipt is your strongest proof of an expense. Without it, you are relying on bank or credit card statements, which show the amount and vendor but not the nature of the purchase. Digital photos of receipts are acceptable — you do not need to keep paper copies.

Can I deduct meals on shift?

No. Your lunch or dinner during a regular shift at the hospital is a personal meal, not a business expense, regardless of whether you are a W-2 or 1099 nurse. The only meals that may be deductible are meals consumed while traveling between your tax home and an assignment location (50% deductible for 1099 nurses), meals at business-related conferences or events, and meals with clients or colleagues that have a clear business purpose. Your daily lunch at the hospital cafeteria does not qualify.

Key Takeaways

W-2 nurses have limited federal deductions after the TCJA — but your tax-free stipends are worth far more than most deductions ever were. Protect your tax home status above all else.
1099 nurses have broad deduction access via Schedule C — licensing, travel, housing, supplies, education, and more. The trade-off is self-employment tax and the administrative burden of quarterly payments.
Track every expense throughout the year. A good expense-tracking app and a dedicated business credit card make this painless.
State deductions may still be available even when federal deductions are not. Know the rules for every state where you work.
A travel-nurse-savvy CPA pays for themselves. The complexity of multi-state filing, stipend tax treatment, and available deductions makes professional help a worthwhile investment.

Affiliate Placement Notes

Tax software affiliate link in “How to Claim Your Deductions” section
CPA referral affiliate link in key takeaways and “State-Specific Deduction Opportunities”
Expense tracker app affiliate link in “How to Track and Document Deductions” section
Mileage tracking app affiliate link in the travel expenses section