Key Takeaways
- Florida residency allows travel nurses to receive tax-free housing and meal stipends
- A "tax home" requires regular, substantial work in your home area or major expenses duplicated
- The 183-day rule doesn't apply to travel nurses the same way - it's about tax home, not physical presence
- Proper documentation protects you during IRS audits of your per diem payments
Why Florida Residency for Travel Nurses?
As a travel nurse, establishing Florida as your tax home offers significant financial benefits:
- No state income tax: Save thousands on your taxable wages
- Tax-free stipends: Housing, meals, and incidentals paid tax-free (when you have a legitimate tax home)
- Multi-state simplicity: No home state return to file for your nursing income
- Audit protection: Clear documentation of your permanent residence
Potential Savings: A travel nurse earning $100,000/year in taxable wages plus $30,000 in stipends could save $10,000-15,000+ annually compared to being domiciled in a high-tax state like California.
All plans work: The Essential plan ($55/mo) is fully sufficient for your Florida driver's license and tax home documentation. Thousands of travel nurses use our Essential plan successfully.
Understanding Your Tax Home
The IRS defines your "tax home" as your regular place of business or, if you don't have one, where you regularly live. For travel nurses, this is critical because:
- With a tax home: Housing, meal, and travel stipends can be paid tax-free
- Without a tax home: All stipends become taxable income
What Makes a Valid Tax Home?
According to IRS Publication 463, you have a tax home if you meet at least two of these three factors:
| Factor | What It Means | How to Meet It |
|---|---|---|
| Factor 1: Perform part of your business in your home area | Some regular, substantial work near your tax home | Work PRN shifts at a Florida hospital between assignments |
| Factor 2: Duplicate living expenses | Pay for housing at tax home AND temporary location | Maintain Florida residence while paying for travel housing |
| Factor 3: Haven't abandoned your historical home | Family, possessions, or established ties to home area | Keep Florida address, voter registration, bank accounts |
For Travel Nurses: You typically meet Factor 2 (duplicate expenses) automatically - you're paying for your Florida residence AND temporary assignment housing. Combined with Factor 3 ties, you have a valid tax home.
Per Diem and Stipend Taxation
Understanding how your pay is taxed is crucial:
Taxable Income
- Hourly wage × hours worked
- Overtime pay
- Completion bonuses
- Any "blended rate" pay above the taxable wage
Tax-Free (With Valid Tax Home)
- Housing stipend (up to GSA per diem rates for the assignment location)
- Meals & Incidentals (M&IE) stipend
- Travel reimbursements to/from assignments
Why documentation matters: With proper documentation of your Florida tax home, your stipends remain tax-free. Your Tax Base ensures your documentation is complete from day one—thousands of travel nurses use this approach successfully.
Multi-State Assignment Considerations
As a travel nurse working in multiple states, you need to understand state tax implications:
States With Income Tax
When you work in a state with income tax, that state will typically tax the income you earn there. However:
- Only your taxable wages are subject to state tax (not stipends)
- Florida doesn't tax income, so there's no home state tax to pay
- You'll file non-resident returns in states where you work
Compact States
The Nurse Licensure Compact (NLC) allows you to practice in multiple states with one license. Florida is a compact state, making it easier to take assignments across the country.
The 183-Day Rule for Travel Nurses
Many nurses worry about the 183-day rule, but it works differently for travel nurses than for most people:
What the Rule Actually Means
The 183-day rule typically determines statutory residency - whether a state can claim you as a resident for tax purposes. For travel nurses:
- You're a Florida domiciliary (permanent legal resident) regardless of days spent there
- Other states tax you as a non-resident on income earned there
- Spending 183+ days in another state could make you a statutory resident there
Protecting Yourself
- Avoid 183+ days in any single state: Break up long assignments or take assignments in different states
- Return to Florida between assignments: Even brief returns help establish your tie to your tax home
- Document your intent: Florida driver's license, voter registration, Declaration of Domicile
Required Documentation
To protect your tax-free stipends during an audit, maintain:
Florida Residency Documents
- Florida driver's license with your Florida address
- Voter registration in Florida
- Declaration of Domicile filed with county clerk
- Bank accounts with Florida address
- Vehicle registration in Florida
Tax Home Documentation
- Lease or address documentation for your Florida residence
- Utility bills or service payments showing ongoing Florida expenses
- Travel records showing returns to Florida
- Copies of all assignment contracts
- W-2s from each assignment location
Documentation Best Practices for Travel Nurses
The IRS occasionally audits travel nurses to verify their tax home. If audited:
What They'll Look For
- Evidence you maintain a permanent residence in Florida
- Duplicate expenses (paying for Florida AND assignment housing)
- Pattern of returning to Florida between assignments
- Legitimate business reason for travel (nursing is by nature temporary)
How Your Tax Base Helps
- Real Florida residential address (not a PO Box)
- Declaration of Domicile filing
- Documentation of your ongoing Florida expenses
- Mail forwarding that shows continuous connection to Florida
Getting Started
To establish Florida as your tax home:
- Sign up with Your Tax Base to get your Florida residential address
- Complete Form 1583 for mail authorization
- File your Declaration of Domicile
- Get your Florida driver's license on your next visit
- Register to vote in Florida
- Update your staffing agency with your Florida address
- Notify your bank and update financial accounts