Travel Nurse Tax Calculator
2025-2026 Tax Year | IRS Compliant | Comprehensive Analysis
Travel Nurse Tax Calculator 2025
You work hard caring for others. Let's make sure you keep every dollar you've earned. This calculator helps you understand your true take-home pay across all your contracts and verify IRS compliance.
Tax Home Verification
The IRS requires you to meet at least 2 of 3 criteria to receive tax-free stipends. Answer these questions honestly—this is the foundation of your tax situation!
Factor 1: Do you work at your tax home?
Do you pick up PRN shifts, work per diem, or do any nursing work at all in your home area? Even a few shifts per year counts!
Factor 2: Do you duplicate expenses?
Are you paying rent or a mortgage at your permanent home while ALSO paying for housing at your assignment? This is the most important factor—make sure you have proof (lease, mortgage statements, utility bills)!
Factor 3: Do you maintain ties to your tax home?
Do you return home regularly (at least once a year)? Is your mail, driver's license, and voter registration at your permanent address? Do you have family or belongings there?
Excellent! You Qualify for a Tax Home!
You meet 2 of 3 IRS criteria. This means your housing and M&I stipends can be TAX-FREE! This saves you thousands of dollars. Just make sure to keep all your documentation (lease, utility bills, receipts) in case the IRS ever asks.
Your Contracts
Contract Details
DANGER! 13 weeks exceeds the IRS 12-month rule! After 12 months in one area, that becomes your new tax home and you LOSE tax-free stipends. Talk to your agency about this immediately!
Pay Structure
Base Pay
Overtime & Shift Differentials (Optional)
Tax-Free Stipends
Bonuses (Optional)
401(k) Retirement Contributions (Optional)
Housing & Monthly Expenses
Work-Related Expenses
Important Tax Note
Most travel nurses are W-2 employees, which means you CANNOT deduct job expenses on your federal taxes (through 2025 under current law). However, these expenses still come out of your pocket and affect your take-home pay! Track them here to see your REAL net income.
Understanding Travel Nurse Taxes: Complete Guide
Why This Calculator is Different
This is the most comprehensive travel nurse tax calculator on the internet. Unlike simple pay calculators, we verify your IRS tax home status using the three-factor test, check GSA per diem compliance, calculate multi-state tax obligations, and provide staff pay comparisons—all based on 2025-2026 tax regulations.
The IRS Three-Factor Test
To receive tax-free stipends, you must qualify for a tax home under IRS rules. The IRS uses three criteria, and you must meet at least two of them:
- Perform work at your tax home: You must conduct business in your permanent residence area
- Duplicate expenses: Pay for housing at both your tax home and assignment location
- Non-abandonment: Maintain strong ties (utilities, mail, voter registration) and return regularly
If you meet only one or zero factors, the IRS considers you an "itinerant," meaning your tax home is wherever you work, and all stipends become taxable income.
Tax-Free Stipends Explained
Travel nurses receive two types of compensation:
- Taxable hourly pay: Your base rate, subject to federal, state, and FICA taxes
- Non-taxable stipends: Housing and meals & incidentals (M&I) reimbursements
Stipends are only tax-free if you have a qualifying tax home. They must also fall within GSA per diem limits for your assignment location. Exceeding GSA rates may trigger IRS scrutiny or make excess amounts taxable.
The 50-Mile and 12-Month Rules
50-Mile Rule
While not an official IRS requirement, most agencies require assignments to be at least 50 miles from your tax home to qualify for tax-free stipends. This distance threshold helps prove you're duplicating expenses.
12-Month Rule
IRS rules define "temporary" assignments as lasting one year or less. If you work in the same area for over 12 months, that location becomes your new tax home, and you lose eligibility for tax-free stipends.
Multi-State Tax Filing Requirements
Travel nurses must navigate complex multi-state tax obligations:
- File a resident return in your tax home state
- File non-resident returns in every state where you worked
- Claim credits in your home state for taxes paid to other states to avoid double taxation
- Check for reciprocity agreements between states (15 states have 30 agreements as of 2025)
States with no income tax (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming) simplify this process significantly.
Deductions for Travel Nurses (2025-2026)
Important: The Tax Cuts and Jobs Act (TCJA) suspended unreimbursed employee expenses from 2018-2025. This means W-2 travel nurses cannot deduct most job-related expenses on federal returns through 2025 (this may change in 2026).
However, certain expenses may be deductible:
- 1099 contractors: Can deduct business expenses on Schedule C
- State returns: Some states still allow W-2 employee expense deductions
- Potential 2026 changes: If TCJA provisions expire, deductions may return
Common Deductible Expenses (for 1099 or state returns)
- Mileage at $0.70 per mile (2025 IRS rate)
- License renewals and certification fees (not initial licensure)
- Continuing education (CEUs, BLS, ACLS)
- Required uniforms and scrubs (not suitable for everyday wear)
- Professional membership dues
- Travel expenses to/from assignments (if not reimbursed)
Documentation is Critical
⚠️ High Audit Risk
Travel nurses are at higher risk for IRS audits due to low taxable income combined with high stipends. Keep meticulous records: lease/mortgage statements, utility bills, voter registration, bank statements, travel receipts, and proof of ties to your tax home. The IRS can challenge your tax home status up to 3 years after filing (or 6 years for substantial underreporting).
Frequently Asked Questions
Can I use my parents' address as my tax home?
Yes, if you can prove you contribute to household expenses and maintain genuine ties there. You need documentation showing financial participation (rent payments to parents, utilities in your name, etc.). Simply using their address without substantial financial connection won't qualify.
What if my stipends exceed GSA rates?
Stipends exceeding GSA per diem limits may be considered taxable income. However, high-cost areas (like San Francisco, New York City) have much higher GSA limits. Always check the specific GSA rate for your assignment location at gsa.gov/perdiem before accepting a contract.
Should I establish Florida residency?
Florida has zero state income tax, which can save travel nurses thousands annually. If you spend 183+ days per year in Florida or maintain a Florida tax home, establishing Florida residency can significantly reduce your tax burden. Learn more about our Florida residency services.
Do I need a tax professional?
Strongly recommended. Travel nurse taxation involves multi-state filing, tax home verification, and IRS compliance issues that general tax preparers may not understand. Work with a CPA who specializes in travel healthcare professionals to maximize your take-home pay and minimize audit risk.
Remember: This calculator provides estimates for planning purposes. Always consult with a qualified tax professional who specializes in travel healthcare to ensure compliance with IRS regulations and maximize your take-home pay. Keep detailed records of all expenses, maintain documentation of your tax home, and file all required state returns on time.