How to Maintain Your Tax Home as a Travel Nurse (IRS Rules 2026)

A single mistake in maintaining your tax home could cost you $8,000 to $15,000 in lost tax-free stipend benefits. And I am not exaggerating. Your tax home status determines whether your housing stipends, meal allowances, and travel reimbursements are completely tax-free or fully taxable income. For travel nurses earning $30,000 or more in annual stipends, this is the difference between keeping that money and handing a third of it to the IRS.

Here is the reality: travel nurses face higher audit rates than most W-2 employees because of the unusual ratio of tax-free stipends to taxable wages. The IRS knows this compensation structure exists, and they look for nurses who claim tax-free benefits without actually maintaining a valid tax home.

In this guide, I am going to walk you through exactly how to maintain your tax home the right way. We will cover the IRS 3-part test, the 12-month rule that trips up so many nurses, documentation requirements that will protect you in an audit, and the most expensive mistakes I see travel nurses make. By the end, you will know exactly what you need to do to keep your stipends tax-free and stay on the right side of the IRS.

Let us start with the IRS definition, because misunderstanding this ONE concept costs thousands of travel nurses money every year.

What Is a Tax Home? (IRS Definition & Why It Matters)

Before we dive into the specific requirements, you need to understand what the IRS actually means by "tax home." This is where most travel nurses get confused, and that confusion leads to costly mistakes.

The Official IRS Definition

According to IRS Publication 463, your tax home is defined as:

"Your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home."

Notice something important here: the IRS says "city or general area," not a specific street address. Your tax home is a geographic region, not just your apartment or house. This matters because it gives you flexibility in how you establish and maintain your tax home.

Also critical: your tax home is where you WORK, not necessarily where you live. For most workers with a single employer, these are the same place. But for travel nurses who work in different cities throughout the year, this creates a unique situation.

Why This Definition Is Different for Travel Nurses

Most American workers have a straightforward tax home situation. They work at one location (an office, a hospital, a factory), and that location is their tax home. Simple.

Travel nurses break this model completely. You might work in San Diego for 13 weeks, then Phoenix for 13 weeks, then Seattle for 13 weeks. Where is your "main place of business"? Technically, it changes every few months.

Because of this unique challenge, the IRS created a workaround for temporary workers like travel nurses. Instead of your tax home being where you work, it becomes where you REGULARLY LIVE, assuming you meet certain criteria. This is where the 3-part test comes in, which we will cover in detail in the next section.

The key insight is this: as a travel nurse, you need to establish a permanent location that serves as your tax home, separate from your temporary assignment locations. Your assignments are "away from home" for tax purposes, which is what makes your stipends tax-free.

The Stakes: Tax-Free Stipends vs. Fully Taxable Income

Let me show you exactly why this matters with real numbers.

With a valid tax home:

• Annual stipends: $30,000
• Federal tax on stipends: $0
• You keep: $30,000

Without a valid tax home:

• Annual stipends: $30,000 (now taxable)
• Federal tax (assuming 25% effective rate): $7,500
• You keep: $22,500

That is a $7,500 difference in ONE YEAR. Over a 5-year travel nursing career, we are talking about $37,500 or more in unnecessary taxes.

Here is a more detailed example:

Jennifer earns $65,000 in taxable wages plus $30,000 in tax-free stipends for a total compensation of $95,000. If she loses her tax home status, that $30,000 becomes taxable income. At her marginal tax rate, she now owes approximately $7,500 more in federal taxes. Her take-home drops from effectively $87,500 to $80,000. One mistake in maintaining her tax home just cost her $7,500.

The "Itinerant Worker" Danger Zone

If you fail to establish a valid tax home, the IRS classifies you as an itinerant worker. This is the classification you absolutely want to avoid.

An itinerant worker is someone who has no fixed place of business and no established residence. For tax purposes, their "home" is wherever they happen to be working at the moment. Since they are never "away from home," they cannot receive tax-free travel reimbursements.

The consequences of itinerant classification include:

• All stipends become taxable: Housing, meals, and travel reimbursements are all added to your taxable income
• No travel expense deductions: You cannot deduct any travel-related expenses since you are never "traveling"
• Higher audit risk: Inconsistencies between your claimed status and actual lifestyle trigger IRS scrutiny
• Back taxes and penalties: If audited, you may owe years of back taxes plus interest and penalties

The IRS 3-Part Test: Meet 2 of 3 Criteria to Maintain Your Tax Home

Here is the good news: the IRS does not require you to meet all three criteria to have a valid tax home. You only need to satisfy TWO out of THREE. But understanding what each criterion actually requires is critical, because many travel nurses think they satisfy a criterion when they do not.

Let me break down each one in detail.

Criterion #1: You Perform Work in the Area of Your Main Home

What This Means

You must do SOME work and earn SOME income in the vicinity of your declared tax home. This does not have to be full-time work. Part-time, per diem, or occasional shifts count. The point is to prove your tax home is not just a random address you picked; it is a place where you actually have professional connections.

How to Satisfy This Criterion

There are several ways travel nurses commonly satisfy this requirement:

• Per diem or PRN shifts: Work 1-2 shifts per month at a hospital in your tax home city. This is the most straightforward approach.
• Freelance or consulting work: Remote nursing consulting, medical writing, or healthcare education billed to your tax home address.
• Rental income: Own rental property in your tax home location. The rental income counts as work performed in that area.
• Small business income: Online courses, telehealth shifts, or nursing-related consulting based in your tax home area.
• Teaching or education work: Healthcare education, precepting, or training work in your tax home location.

Important Qualifier

The work should be REGULAR and MEANINGFUL, not just a token effort. The IRS looks for genuine economic activity in your tax home area. A good benchmark: aim for approximately 25% of your annual income to come from your tax home area, OR maintain regular ongoing work there (even if it represents less than 25% of income).

Example: You earn $60,000 from travel assignments plus $20,000 from local per diem work at your tax home hospital. That 25% from local work provides strong proof of Criterion #1.

Example Scenario

Jessica has a tax home in Houston, Texas. While she takes travel assignments across the country, she maintains per diem status at a Houston hospital where she works 1-2 weekend shifts per month when she is home. This generates $4,000 to $5,000 in annual income from her tax home area. Combined with her Texas driver's license, Houston apartment, and regular returns home, Jessica clearly satisfies Criterion #1.

Criterion #2: You Duplicate Living Expenses

What "Duplication" Means

You must pay for housing and living expenses at TWO locations simultaneously. At your tax home, you pay rent or mortgage, utilities, insurance, and maintenance. At your assignment location, you pay rent or hotel costs for temporary housing. This "duplication" proves you are maintaining a real home that you cannot use while working away from it.

The Fair Market Value Requirement

Here is where many travel nurses get into trouble: your expenses must be at FAIR MARKET VALUE, not nominal amounts.

You cannot claim your mother's spare bedroom at $50 per month when market rent in that area is $1,200. The IRS will see through this immediately. If you live with family, you need to pay a reasonable amount that reflects actual housing costs.

If you own your home free and clear with no mortgage, you can still satisfy this criterion by documenting utilities, property taxes, maintenance costs, and insurance. These are all legitimate duplicate expenses.

What Qualifies as Duplicate Expenses

Expense Type	Tax Home Location	Assignment Location
Housing	Rent or mortgage payment	Rent, Airbnb, hotel
Utilities	Electric, gas, water, internet	May be included in rent
Property costs	Property tax, HOA fees	N/A
Insurance	Homeowner/renter insurance	Renter insurance if applicable
Maintenance	Lawn care, repairs, cleaning	N/A
Vehicle	Registration, insurance in tax home state	N/A

What Does NOT Count

• Groceries or food: Personal consumption expenses are not duplication-specific
• Health insurance: Not location-specific
• General travel costs: These are counted separately
• Meals covered by per diem: Already accounted for in your stipend

The "Reasonable Expectation" Standard

Your staffing agency must have a "reasonable belief" that you will incur the housing costs they reimburse. This is why GSA per diem rates set a maximum: if the GSA rate for San Diego is $161 per day ($4,830 per month) but actual apartments cost $1,800 per month, the agency cannot justify paying the full GSA maximum.

This protects both you (agencies cannot force underpayment) and the IRS (agencies cannot reimburse excessive amounts without substantiation).

Example Scenario with Numbers

Michael maintains a $1,200 per month apartment in Jacksonville, Florida as his tax home. On his California assignment, he pays $1,800 for temporary housing. Here is his monthly duplicate expense calculation:

• Tax home: $1,200 rent + $150 utilities + $100 renter insurance = $1,450
• Assignment: $1,800 housing = $1,800
• Total monthly duplicate expenses: $3,250

This clear documentation PROVES Michael is incurring duplicate expenses. If his utilities were shut off or his apartment abandoned, this proof would weaken significantly.

Documentation Required for IRS

Keep all of the following for at least 7 years:

• Lease agreement or property deed in your name at tax home
• 12 months of utility bills showing ongoing payments
• Mortgage statements or Form 1098
• Receipts for maintenance, repairs, and cleaning services
• Car insurance bills showing tax home address
• Lease and payment receipts for assignment location housing
• Bank statements showing monthly payments at BOTH locations

Criterion #3: You Have Not Abandoned Your Tax Home

What "Non-Abandonment" Means

You must demonstrate an ONGOING CONNECTION to your declared tax home. Abandonment means "I am never going back; this is just a mailing address." The IRS evaluates non-abandonment through the frequency of your returns, family connections, property maintenance, and community ties.

The 30-Day Rule (Clarification)

A common guideline is to return to your tax home for at least 30 days within any 12-month period. Important clarifications:

• The 30 days can be spread throughout the year (not one continuous block)
• Six 5-day visits equals 30 days total, which satisfies this guideline
• The purpose is proving you still USE your home, not just that you own or rent it

Seven Proofs of Non-Abandonment

1. Direct family members living at tax home: Spouse, children, or parents living there is the STRONGEST proof
2. Frequent returns: Documented visits home between assignments
3. Community ties: Local memberships (professional associations, church, gym)
4. Financial responsibility: Active mortgage or rent, utilities, property maintenance
5. Driver's license and voter registration: Current ID in tax home state
6. Bank accounts: Primary banking relationship in tax home location
7. Professional licenses: Maintained nursing license in tax home state

Example of Strong Non-Abandonment Proof

Sarah's Florida apartment has her husband living there full-time. She returns 8-10 times per year for 45+ days total. She maintains: Florida driver's license, Florida voter registration, Florida auto insurance, utilities in her name, participation in a local professional nursing association, banking in Florida, and mortgage in her name. This is rock-solid non-abandonment proof.

How Often Should You Return Home?

• Minimum: 30 days per year
• Recommended: Quarterly (every 3 months)
• Optimal: 45-60 days per year with 2-3 week visits

Each return should be documented with flight receipts, photos, and activity proof.

The 12-Month Rule: The Biggest Threat to Your Tax Home Status

This is the rule that catches the most travel nurses off guard. Even if you have a perfectly established tax home, violating the 12-month rule can make your stipends taxable.

What Is the 12-Month Rule?

If you stay in ONE LOCATION (city or general area) for more than 12 months, the IRS may consider that location your NEW tax home. Your original tax home no longer applies, and your stipends become taxable.

Key clarification: "location" means a city or metro area, not an entire state. Working in Los Angeles for 8 months and then San Diego for 8 months is fine, because they are different locations (even though both are in California).

Critical Clarification: EXPECTATION, Not Actual Outcome

Here is where it gets nuanced. The IRS asks: "At the START of your assignment, did you EXPECT it to last less than 12 months?"

• If you reasonably expected the assignment to last less than 12 months, your stipends are tax-free (even if circumstances later cause it to extend)
• BUT if the assignment extends beyond 12 months, stipends AFTER the extension acceptance become taxable
• The change takes effect when the extension is ACCEPTED, not at day 366

Example of the Expectation Rule

Devon signs a 13-week contract in Boston with an expected end date in October. His stipends are tax-free because he expected the assignment to last less than 12 months. In August, the hospital offers a 12-week extension through December. At that point, the assignment becomes "indefinite" because total duration will exceed 12 months. When Devon accepts the extension in November (making total time exceed 12 months), any stipends AFTER NOVEMBER become taxable. The original October contract stipends remain tax-free.

The Rolling 24-Month Window

The 12-month period is calculated within a rolling 24-month window. This means:

• 8 months in Location X in Year 1, then 6 months in Location X in Year 2 = 14 months within 24 months = violation
• You cannot "reset" by taking a short assignment elsewhere and then returning
• Track your cumulative days in each location carefully

Geographic Detail: What "One Location" Means

You CAN work in the same STATE indefinitely if you move to different AREAS within that state:

• LA and San Diego = different areas (both California, but different locations)
• Dallas and Houston = different areas (both Texas, but different locations)
• Northern California (Bay Area) and Southern California (LA) = different areas

The test is whether you are working in the same "general area," which typically means the same metropolitan region.

Why the 12-Month Rule Matters

• Lose tax-free status: Stipends after the 12-month point become taxable
• Retroactive consequences: IRS may assess back taxes for the entire period
• Audit trigger: Extended stays in one location are a red flag for auditors
• State implications: Some states have even stricter rules than the IRS

How to NOT Violate the 12-Month Rule

1. Rotate locations: Accept assignments in different cities
2. Take breaks: Return to your tax home for 1-2 months between same-city assignments
3. Document expectations: Keep contracts showing assignment length was expected to be under 12 months
4. Track cumulative time: Maintain a spreadsheet tracking days in each city within the rolling 24-month window
5. Communicate with your recruiter: Clarify total expected duration BEFORE accepting extensions

Real-World Consequence Scenario

Amber works in Houston for 10 months (expected to be temporary). The hospital offers her continued employment indefinitely. She stays 4 more months for a total of 14 months. The first 10 months remain tax-free (she expected less than 12 months). Months 11-14 are taxable because the extension made the assignment indefinite. The entire assignment may be reassessed by the IRS if she cannot document her original expectation.

Documentation and Record-Keeping (What the IRS Wants to See)

Let me be direct: documentation is your audit defense. Travel nurses face higher audit risk than most W-2 employees, and the burden of proof is on YOU to demonstrate your tax home status. The IRS does not have to prove you lack a tax home; you have to prove you have one.

Why Documentation Matters

• Travel nurses receive an unusual compensation structure (high stipends, lower taxable wages)
• This ratio triggers IRS scrutiny
• Without documentation, the IRS will disallow your tax-free stipends
• Proper records are your insurance policy

A. Travel Contracts (Most Important)

Keep the original signed contract for EVERY assignment. Each contract must include:

• Start and end dates
• Facility name and address
• Taxable hourly rate
• ALL stipend amounts broken out separately

Why: Proves your work location was away from your tax home, proves the temporary nature of each assignment, and quantifies your tax-free amounts.

How to store: Digital PDF copy, cloud backup, AND physical copy in a safe location.

B. Tax Home Residence Documentation

• Lease agreement or property deed in your name
• 12 months of utility bills (electric, gas, water, internet) in your name
• Mortgage statements or Form 1098
• Property tax assessments
• Proof of ongoing payments (bank statements showing rent transfers)
• Active homeowner or renter insurance policy

C. Duplicate Expenses at Assignment Location

• Housing lease or rental agreement plus payment receipts
• Utilities at assignment location (if applicable)
• Travel to reach assignments: flight receipts, mileage logs, hotel receipts

D. Proof of Tax Home Connection

• Current, valid driver's license from tax home state
• Voter registration card from tax home state
• Bank account statements showing tax home address
• Professional memberships in tax home location

E. Proof of Returns Home

• Flight confirmations and receipts to tax home
• Hotel receipts during visits
• Personal calendar showing "home" time
• Photos at tax home (with timestamps)

F. Agency Documentation

• Signed tax home declaration form from each agency
• W-2 forms (verify they show ONLY taxable wages, not stipends)
• Expense reports (if under accountable plan)

G. Tax Home Maintenance During Assignments

• Bank statements showing monthly rent or mortgage payments while on assignment
• Utility bills during assignment period (proving ongoing payments at tax home)

How Long to Keep Records

• IRS standard: 3-7 years
• Safe practice: Keep indefinitely or at least 10 years
• Digital backup: Cloud storage plus hard copies

How to Organize Your Records

Create a folder structure like this:

• Year > Assignment Location > Contract + Expenses + Housing
• Spreadsheet tracking: Assignment location, dates, stipend amounts, duplicate expenses
• Annual checklist: End-of-year verification that all documents are present

Common Mistakes That Cost Money (and How to Avoid Them)

Over the years, I have seen travel nurses make the same expensive mistakes repeatedly. Here are the most common ones and how to prevent them.

Mistake #1: Confusing the 30-Day Rule with the 12-Month Rule

The confusion: "If I go home for 30 days, I reset the 12-month clock."

The reality: These are completely separate requirements. The 30-day rule proves you have not abandoned your tax home. The 12-month rule limits how long you can work in one location. They do not interact the way many nurses think.

Prevention: Track both metrics separately in a spreadsheet. Know your cumulative days in each assignment city AND your days at your tax home.

Mistake #2: Not Documenting Duplicate Expenses

The trap: "I pay rent at both locations; I do not need receipts."

The reality: The IRS requires PROOF, not just your word. Bank statements, leases, and utility bills are essential.

Prevention: Keep all leases, utility bills, and bank statements for 12 months minimum at both locations.

Mistake #3: Claiming Housing Stipend You Did Not Actually Incur

The trap: "I took home visits every weekend but claimed the full monthly stipend."

The reality: The IRS wants proof you INCURRED the expense. If you were not actually paying for assignment housing during those weekends, claiming the full stipend is problematic.

Prevention: Track days on assignment versus at home. Claim stipends proportionally to actual expenses incurred.

Mistake #4: Not Reviewing Your Contract Carefully

The trap: "My agency handles taxes; I do not need to understand my contract."

The reality: Agencies are NOT responsible for your individual tax compliance. You are.

Prevention: Spend 30 minutes reviewing each contract. Understand your taxable rate, stipend breakdown, and assignment duration.

Mistake #5: Staying in One Location More Than 12 Months

The trap: "I really liked this city and did not realize the tax implications."

The reality: Your tax home shifts to your assignment location. You lose tax-free status on stipends.

Prevention: Know the 12-month rule BEFORE accepting extensions. Track cumulative days in each city. Plan your assignment rotation deliberately.

Mistake #6: No Ongoing Income at Tax Home

The trap: "I maintain an apartment there; that is enough."

The reality: Lack of local work weakens your tax home claim. You only satisfy 2 criteria (maybe) instead of all 3.

Prevention: Establish per diem work at your tax home. Aim for approximately 25% of your income from that location.

Mistake #7: Not Returning Home Frequently Enough

The trap: "I will go home for 30 days at the end of the year."

The reality: Quarterly visits look much better than one annual visit. The pattern matters.

Prevention: Target 45-60 days per year spread across multiple visits. Return between assignments when possible.

Mistake #8: Assuming Your W-2 Is Accurate

The trap: "If my W-2 shows low taxable income, that proves my stipends are tax-free."

The reality: Some agencies make errors. Some may misclassify stipends. Your W-2 is not proof of tax home status.

Prevention: Verify your W-2 shows ONLY taxable wages, with stipends excluded. Request corrections if needed.

Mistake #9: Not Understanding W-2 vs. 1099 Classification

The confusion: Most travel nurses are W-2 employees, not independent contractors.

Why it matters: Your employment classification affects which tax rules apply and how your income is reported.

Prevention: Understand your classification before signing with any agency. W-2 employees have different obligations than 1099 contractors.

Audit Risk and IRS Red Flags (What Triggers Scrutiny)

Travel nurses face elevated audit risk compared to most W-2 employees. Understanding why, and what specifically triggers scrutiny, helps you avoid becoming a target.

Why Travel Nurses Face Higher Audit Risk

1. High stipend-to-salary ratio: When your W-2 shows $40,000 in taxable wages but you earned $95,000 total, that unusual ratio catches attention
2. Multi-state complexity: Filing in multiple states with varying income amounts looks complicated and potentially suspicious
3. W-2 shows very low taxable wages: A registered nurse earning "only" $35,000 according to their W-2 does not match typical nursing salaries
4. Agency audits cascade: If the IRS audits your staffing agency, individual nurses may be examined as part of that audit

Eight IRS Red Flags for Travel Nurses

1. Missing travel contracts: Cannot prove temporary assignment nature
2. No signed tax home declaration: Cannot prove you claimed tax home status with your agency
3. No duplicate expense documentation: Cannot substantiate that you paid for two residences
4. Same location for more than 12 months: Indicates assignment was not temporary
5. Unreasonably low taxable wages: Example: 15% taxable, 85% stipends ratio
6. No proof of returns to tax home: Suggests you abandoned your tax home
7. Weak ties to tax home state: No driver's license, voter registration, or banking there
8. Agency with known compliance issues: Some agencies have reputations for aggressive stipend structures

What Happens If You Get Audited

IRS requests: All contracts, W-2s, proof of tax home, duplicate expense documentation

Timeline: Typically 6-12 months from initial notice to resolution

Burden of proof: YOU must prove your tax home status. The IRS does not have to disprove it.

Potential outcomes: Back taxes plus interest plus penalties (20-40% in severe cases)

Strategies to Mitigate Audit Risk

1. Work with a tax professional experienced in travel nurse taxation
2. Maintain perfect documentation as outlined in the previous section
3. Be conservative with stipend amounts (do not push limits)
4. Choose reputable agencies with established accountable plans
5. File accurately and on time every year
6. Track everything in organized spreadsheets

State-Specific Considerations (Beyond Federal Rules)

Federal IRS rules are only part of the picture. Individual states have their own residency and taxation rules, and some are significantly more aggressive than the IRS.

Important Reminder: Federal Rules Do NOT Equal State Rules

A valid tax home under IRS rules does not automatically mean you are compliant with every state's requirements. States can and do have stricter rules.

Which States Are Most Aggressive

• California: Notoriously aggressive about asserting residency. Requires documented "clean break" when you leave. Even former residents who move away face audit risk.
• New York: Also aggressive about resident recapture. Similar audit practices to California.
• Illinois: Beginning to scrutinize multi-state workers more closely.

If you have any ties to these states, exercise extra caution with documentation and consider consulting a state tax specialist.

State Filing Rules

General principle: if you work in a state, you file a return in that state.

• Resident return: File in your tax home state
• Non-resident returns: File in EVERY state where you worked temporarily
• Example: Tax home in Texas (resident return), worked in California, Arizona, and Florida (non-resident returns in each)

The 12-Month Rule Varies by State

• Federal: More than 12 months equals loss of tax-free status
• Some states: Stricter rules (California watches assignments even under 12 months closely)
• Prevention: Use the federal 12-month rule as your baseline, but monitor state-specific requirements for any state where you work

Multi-Location Assignments Within One State

You can work in multiple cities within the same state indefinitely IF you never stay in the same city for more than 12 months. However, some states still impose their own multi-assignment rules.

Example: Los Angeles and San Diego are different locations (satisfies the 12-month rule), but both are still California for state income tax purposes.

Multi-State Filing Strategy

1. File a resident return in your tax home state
2. File non-resident returns in EVERY state where you worked
3. Claim tax credits to avoid double taxation on the same income
4. Consider reciprocal agreements between some states

For state-specific guidance, see our guides on Florida residency and best domicile states for tax optimization.

Action Steps (Concrete Next Steps for You)

Here is your implementation checklist, organized by timing.

Before Your First Travel Assignment

Step 1: Declare Your Tax Home Location (1-2 hours)

• Choose your city and state
• Verify you can satisfy at least 2 of the 3 IRS criteria
• Document your choice in writing

Step 2: Establish Physical Presence (1-2 weeks)

• Secure a rental lease or mortgage
• Establish utility accounts in your name
• Get a driver's license and voter registration
• Update your nursing license address

Step 3: Create Ongoing Income Source (Ongoing)

• Secure part-time or per diem nursing work in your tax home area
• OR establish consulting, freelance, or rental income
• Goal: approximately 25% of annual income from tax home area

Step 4: Set Up Documentation System (2-3 hours)

• Create folder structure on your computer
• Create a tracking spreadsheet template
• Set phone reminders for document collection
• Sign up for cloud backup

If you need help establishing a tax home, Your Tax Base provides residential addresses in zero-tax states with lease documentation and utility bills.

During Each Travel Assignment

Step 5: Review and Save Your Contract (30 minutes)

• Verify contract completeness (dates, rates, stipends)
• Save a digital copy
• File in your documentation folder

Step 6: Sign Tax Home Declaration (15 minutes)

• Request the form from your agency
• Sign and keep a copy
• If unavailable, create your own written statement

Step 7: Document Duplicate Expenses Monthly (30 minutes monthly)

• Save utility bills from both locations
• Update your expense spreadsheet
• Keep receipts for assignment housing

Step 8: Plan and Document Returns Home (Quarterly)

• Schedule travel home every 3 months
• Book flights and keep all receipts
• Take timestamped photos at your tax home

Annually (At Tax Time)

Step 9: Organize All Documents (4-6 hours)

• Gather all contracts, W-2s, and proof documents
• Create a comprehensive folder for the year
• Provide to your tax professional with a summary

Step 10: File State Returns

• File resident return in your tax home state
• File non-resident returns in every state where you worked
• Claim tax credits for interstate income

Step 11: Plan Next Year

• Review locations worked this year
• Calculate cumulative days in each location
• Plan assignment rotation to avoid 12-month violations
• Schedule per diem work for the upcoming year

How Your Tax Base Can Help

Establishing and maintaining a compliant tax home requires documentation that many travel nurses struggle to organize. Your Tax Base specializes in tax home solutions for travel nurses and mobile professionals.

Our services include:

• Residential street address in zero-tax states (Florida, Texas, Nevada, South Dakota)
• Triple-verified lease documentation that meets IRS and DMV requirements
• Utility bills in your name (electric, water, etc.)
• Mail forwarding to wherever you are working
• License tracking for multi-state nursing licenses
• Audit-ready documentation available at any time

We help travel nurses satisfy IRS tax home requirements without the hassle of maintaining a physical property they rarely use.

View our pricing or contact us for a free consultation about your specific situation.

Conclusion

Maintaining your tax home is not complicated, but it does require planning and consistent documentation. The core principles are straightforward:

• Your tax home determines whether $20,000 to $40,000+ in annual stipends are tax-free or fully taxable
• The IRS 3-part test plus the 12-month rule form the foundation of tax home compliance
• Documentation is your audit defense, and the burden of proof is always on you
• State rules are often more aggressive than federal rules

Thousands of travel nurses successfully maintain valid tax homes every year. With the right planning and documentation, you can too. The key is understanding the rules BEFORE you start assignments, not after an audit notice arrives.

Your tax-free stipends are worth protecting. A few hours of documentation work per assignment can save you $8,000 to $15,000 or more every single year. That is an excellent return on your time.

Next Steps

• Establish your tax home with compliant residential address documentation
• View our pricing to see how we can help
• Schedule a free consultation to discuss your specific situation
• Read related guides: Travel Nurse Tax Home Requirements | Complete Tax Home Guide

See Also

• Travel Nurse Tax Home Requirements Explained
• Travel Nurse Tax Home: The Complete IRS Guide for 2025
• Tax Home and Domicile Considerations for Travel Nurses
• Florida Domicile Guide for Digital Nomads
• Best and Worst Domicile States for 2026
• Moving to Florida for Taxes? What State Auditors Look For

References

1. IRS Publication 463: Travel, Gift, and Car Expenses (2025)
2. IRS Publication 17: Your Federal Income Tax
3. IRS Revenue Ruling 99-7: Travel expenses for workers with no regular place of business
4. GSA Per Diem Rates
5. IRS Accuracy-Related Penalty Guidelines

Sources & Methodology: This article synthesizes guidance from IRS Publications 463 and 17, IRS Revenue Rulings, GSA per diem rate schedules, and professional practice experience with travel nurse taxation. Individual circumstances vary, and specific tax situations should be reviewed with qualified professionals.