<div>Tax rules can be tricky for the nurse traveler. They can impact your income in ways you might not expect, but also may benefit you. Before you embark on your next assignment, here are a few tax facts to have under your belt. For the finer details (and there are many) consult with your tax advisor or agency recruiter who can put you in touch with a tax expert.</div><h2>Non-Taxable (or Tax-Exempt) Reimbursements</h2><div>Non-taxable reimbursements—also called stipends, subsidies, allowances or per diem payments for meals and lodging to and from your travel destination—can add value to your compensation package. However, to qualify for these away-from-home perks you must meet several criteria.</div><ol><li>You must have a permanent tax home (the residence you own and return to after you complete your assignment).</li><li>Your tax home must be far enough away to require an overnight stay near your travel locale. “Far enough away” typically means a distance of at least 50 miles. Bear in mind that commute rules can be murky and vary by geographic region. Before you travel, make sure you speak with your tax advisor or travel recruiter to identify IRS commuter guidelines as well as those for your specific travel facility.</li><li>Your travel assignment must be regarded as temporary (it must be expected to last no more than one year). If an assignment is extended beyond a year, all subsequent expense reimbursements must be treated as taxable income. What’s more, if you want to work at that same facility in the future, you must typically wait 13 months to reset your tax-benefits clock.</li></ol><h2>Tax-Deductible Expenses</h2><div>Housing stipends and other allowances do not always cover all your living and work expenses. Depending on your circumstances and your contract arrangement you might be eligible to write off some of these additional out-of-pocket expenses. Save all your work-related receipts; you will need them when it’s time to file your year-end tax return.</div><h2>Taxable Supplemental Wage Payments</h2><div>Supplemental income such as bonuses (e.g., completion, extension, or referral bonuses) and lump-sum vacation pay are not considered regular wages, but are taxable. Employers can handle taxation of supplemental income in several ways. They can withhold taxes at a flat rate of 25% determined by the IRS or they can combine it with your regular week’s pay and tax this amount per standard IRS withholding tables.</div><h2>State Taxes</h2><div>Generally, regardless of your state of residence, if your worksite state has an income tax, you are subject to taxation. Bear in mind that working in more than one state throughout the tax year will make your annual income tax returns more complicated. You may have to file tax returns in two or more states, including your state of residence. If you are not tax savvy, consult with a tax professional to prepare the returns for you.</div><div></div><div>Have more questions about travel nurse income tax regulations? Turn to Cross Country Nurses, one of the most <a href="https://www.crosscountrynurses.com/why-nurses-choose-ccn">trusted recruitment agencies</a> in the industry. Call us now at 800.530.6125 to speak with one of our trusted Talent Acquisition Specialists, or browse our available opportunities and apply online today!</div><div></div><div><em>*Please note this article should not be considered tax advice. With specific questions on your own unique situation please contact a tax representative. </em></div>

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