Subscribe

Do You Have a Tax Home? Find Out in 2 Minutes

Answer 7 yes-or-no questions. Get an instant assessment of your tax home status — and what to do next.

Question 1 of 7
Question 1 of 7

Do you maintain a permanent residence that you return to between assignments?

This could be a house, apartment, or condo that you keep while on assignment — not a family member's couch.

Get the 7-Number Contract Checklist (Free)

The exact 7 numbers to compare before accepting any travel nurse contract — in a one-page PDF.

What Is a Tax Home for Travel Nurses?

A tax home is the IRS concept that determines whether your travel nurse stipends (housing, meals, and incidentals) are taxable or non-taxable income. The IRS defines your tax home as your "regular place of business," regardless of where your family home is. For travel nurses, establishing and maintaining a tax home is critical to keeping thousands of dollars per contract tax-free.

Why Your Tax Home Status Matters

Travel nurse pay packages typically include a mix of taxable hourly wages and non-taxable stipends. If you have a valid tax home, those stipends remain tax-free — potentially saving you $5,000 to $15,000 per year in taxes. Without a valid tax home, all of your compensation becomes taxable, significantly reducing your take-home pay.

IRS Criteria for a Valid Tax Home

The IRS uses a three-factor test to determine if you have a tax home:

  1. You perform part of your work in the area of your main home. For travel nurses, this means you have some professional connection to your home area, even if most of your work is on the road.
  2. You have duplicate living expenses. You maintain and pay for a permanent residence while also paying for temporary housing at your assignment location.
  3. You have not abandoned your historical tax home. You maintain community ties such as voter registration, driver's license, vehicle registration, bank accounts, and church or club memberships in your home area.

You must satisfy at least two of these three factors. If you satisfy only one, the IRS may still consider your situation based on all facts and circumstances.

The 12-Month Rule

The IRS considers employment in a single location lasting more than one year as "indefinite" rather than "temporary." If your assignment in the same metro area exceeds 12 months (even across multiple contracts or agencies), you may lose your tax home status for that location. This is why many travel nurses avoid extending beyond 12 months in the same city.

Common Tax Home Mistakes

  • Using a family member's address without paying rent or having a lease
  • Not returning to your home area between assignments
  • Letting your driver's license and voter registration expire in your home state
  • Working in the same metro area for more than 12 consecutive months
  • Not filing state taxes in your home state

Disclaimer

This quiz provides a general educational assessment and is not tax advice. Tax home determinations depend on your specific facts and circumstances. Always consult a qualified CPA or tax professional who is familiar with travel nursing before making tax decisions.