What are the tax deductions i can take as a travelling nurse?

clee1 · Mar 19, 2007

I am not a travel nurse, but I do happen to know quite a bit about the nut-n-bolts of the tax laws; take my advice w/ a grain of salt and consult with your tax professional.

Typically, ANY and ALL unreimbursed expenses incurred while producing income are deductible. Uniforms, travel expenses and mileage, parking, tolls, fares, meals, lodging, dues, agency fees, etc. are all deductible against your income. There is a mileage limit (50 miles, I think) from your residence before meals and lodging are deductible.

Are you a W2 employee or are you given a 1099-MISC at the end of the year? This is important as if you are a W2 employee, you must itemize deductions to take advantage of any of this. As a 1099-MISC contractor, all expenses reduce the total income. Subtle difference to be sure, but a difference nonetheless.

mackkjrn · Mar 19, 2007

My permanent tax home is MO, and I am in Hawaii, so I assume that's conlidered more than 50 miles. lol. My company reimburses me 1000 for lodging/month, but I pay more than that. Is the extra that I pay deductible?

Thanks for your help.

clee1 · Mar 19, 2007

Yep... If you have to spend it in the course of earning a living, and nobody pays you back for it, it is deductible.

Are you a 1099 contractor, or a W2 employee?

mackkjrn · Mar 19, 2007

I am a w2 employee. I already have 9000 in deductions from mortgage interest and other miscellaneous things. I am excited to add this to it!

Cattitude · Mar 19, 2007

I am a w2 employee. I already have 9000 in deductions from mortgage interest and other miscellaneous things. I am excited to add this to it!

And may I add that H & R Block STINK for doing taxes for nurses. I could do just as well doing them myself. All they do is plug your numbers into their software. You could essentially do the same. One year I brought it to them to see tentatively what they would do.

Ha! They really had no clue about nurse deductions. i left in a hurry!

Now I spend $300 on an accountant who is WELL worth it.

clee1 · Mar 19, 2007

I am a w2 employee. I already have 9000 in deductions from mortgage interest and other miscellaneous things. I am excited to add this to it!

OK.... add ALL your meal expenses that you can document, as well as the difference between your rent and what the employer reimburses. ALL travel expenses not paid by your employer. Don't forget ANY medical and dental expenses; including prescription and OTC meds, after tax insurance premiums, copays, deductibles, etc. After tax retirement investments (and you really should look into a Roth IRA if you don't have one in addition to your employer' 401K plan). Don't forget property taxes (house and cars, boats, motorcycles), any tax you had to pay to your state last year after withholdings. State sales tax (either formula or actual payments from receipts).

The list is really endless... IF you keep good records. I'll echo the other poster: HR Block really sucks - a good accountant is worth every penny they charge.

Good luck!

mackkjrn · Mar 19, 2007

The thing is, i haven't really kept my receipts from my meals while here. Another traveller I work with said I am allowed 50/day for everyday I work. Ever heard of this rule?

This whole tax situation really ticks me off! I spend good money for someone to do my taxes, and they can't even get it right.

Thanks everyone.

clee1 · Mar 19, 2007

The thing is, i haven't really kept my receipts from my meals while here. Another traveller I work with said I am allowed 50/day for everyday I work. Ever heard of this rule?
This whole tax situation really ticks me off! I spend good money for someone to do my taxes, and they can't even get it right.
Thanks everyone.

I recall hearing about a per diem rate for meals, but I don't know what it is currently. I always kept my meal receipts when on business travel. I always filed them against my taxes instead of being reimbursed by the employer.... always needed the tax break more.

JRapha'sRN · Mar 19, 2007

Check out these three sites for very valuable tips and definitions.

http://www.traveltax.com/

http://www.kobaly.com/ (download their "Free Organizer" regardless of what you do for taxes this year--it will help you figure out what you need to keep track of for next tax season!)

http://www.healthcaretraveler.com (look for the link in the column on the left "Tax Facts")

mackkjrn · Mar 20, 2007

And may I add that H & R Block STINK for doing taxes for nurses. I could do just as well doing them myself. All they do is plug your numbers into their software. You could essentially do the same. One year I brought it to them to see tentatively what they would do.
Ha! They really had no clue about nurse deductions. i left in a hurry!
Now I spend $300 on an accountant who is WELL worth it.

I called H&R Block and talked with them about the new deductions I found, and they sounded offended. The lady who did my taxes said I wasn't on business here, but was a "transient worker" and couldn't do anything for me. She's calling someone tomorrow for advice with this. Does anyone know a good accountant who deals with travellers? I'd love to speak with them.

sandals · Apr 2, 2007

i hear travel agencies offering free housing. is the nurse getting hit with a 1099 that she will have to pay taxes on at the end of the year and are nurses aware of this?

sandals