Understanding Tax Home Requirements for Travel Nurses

As a travel nurse, understanding tax home requirements is crucial to maintaining your non-taxable stipends and avoiding IRS audits. This comprehensive guide breaks down everything you need to know.

What is a Tax Home?

According to IRS Publication 463, your tax home is the entire city or general area where your main place of business is located, regardless of where you maintain your family home.

Key Requirements

To maintain a valid tax home, you must meet these three criteria:

• Have duplicate living expenses (maintaining expenses at your tax home while working away)
• Not abandon your tax home area
• Have a reasonable expectation of returning to your tax home area

Documentation You Need

The IRS wants to see proof of your tax home status. Essential documentation includes:

• Permanent address documentation (lease, mortgage, utility bills)
• State driver's license or ID from your tax home state
• Voter registration in your tax home state
• Bank accounts with your tax home address
• Professional licenses using your tax home address

Common Mistakes to Avoid

Many travel nurses make these critical errors:

• Using a P.O. Box instead of a street address
• Failing to maintain duplicate expenses
• Not documenting their intent to return
• Working in the same location for more than 12 months

Your Tax Base helps you avoid these mistakes by providing a legitimate street address, tracking your assignments, and auto-generating IRS-compliant documentation.