ICU nurse new to traveling lingo- someone show me the ropes!! :)

Specialties Travel

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Specializes in ICU, PICU.

I've been an ICU nurse for over 3 years now and I'm looking to travel in a couple months... I've done my fair share of research so I think I'm past the Traveling 101 stage... Now I'm wanting to know specifics!

I keep reading about compensation being better if you have a "tax home" but I'm not a numbers person and I need someone to explain this to me better... My husband owns a house in California and it's in his name (we haven't gotten around to adding me to the mortgage yet). We rent out our house and have downsized to a small rental in Ohio where we live now. I'll be traveling alone for at least the first assignment.

My ultimate goal is to make enough money to pay off debt and to get away from the horrendous Ohio winters. I'm looking at getting back to California, or considering Texas, Florida, or even Hawaii as back-ups.

Can you all give me some tips of the trade and perhaps a reality check? I've spoken to recruiters from Aya, Travel Nurses Across America, and Flexcare.

Thanks in advance for your help! :)

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At a "real" job, you get a paycheck with withholding taxes applied to all your earnings right? Yet if your hospital was to send you to a conference for example that was work related, perhaps about critical care, or to help a recruiting effort, and they paid all expenses, you wouldn't expect to pay taxes on the hotel bill right?

Well, without a tax home to work away from as a traveler, all your earnings are taxable just like a real job, and for the same reason, you haven't incurred "extra" or "additional" or "duplicated" business expenses such as lodging.

If you are maintaining a tax home that you can return to at any time (Ohio would qualify currently, the rental house in California would not), then the housing you get for on a travel assignment is a duplicated expense, eligible to either deduct on your taxes, or eligible to be "reimbursed" or provided outright by your employer (the agency). Otherwise, you must pay taxes on that benefit, just as if you lived where that assignment is, which you would as an itinerant worker.

That's the gist, but you can read much more about the nuts and bolts on PanTravelers and TravelTax. This is still travel 101 I'm afraid and ideally you should learn more before you start to travel and understand the concepts so you don't make a fatal error. For most travelers, having a tax home represents about $10,000 a year extra in the bank (less expenses in maintaining your tax home - which will be zero initially with your husband continuing to live there).

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Specializes in Cardiac Stepdown.

I have not quite figured out how to search on here yet for a specific topic so forgive me if this has been asked somewhere else... However, my question is can you use a parents house for a tax home or do you have to live on your own first in like an apartment or buy a house?

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Specializes in ICU, PICU.

Ned, thanks so much for the advice! Maybe I need some remediation in Travelers 101, haha... Let me see if I understand what you said: if I travel and live in say, California... I will still be paying for my house (and taxes) in Ohio. When I rent a place while I travel, I can't be taxed twice, so the agency will give me tax-free money to pay for my rent? Please correct me if I'm wrong, I won't be offended...

How will that look when I go to do my taxes, still claiming myself as an Ohio resident?

I still have a lot to learn!! Good thing I haven't quit my day job!

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Specializes in NP. Former flight, CCU, ED RN and paramedic..

No, you can't use your parents address. You need a legit apartment, home, lease, etc. It needs to be "fair market" value, not a storage shed.

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Ned, thanks so much for the advice! Maybe I need some remediation in Travelers 101, haha... Let me see if I understand what you said: if I travel and live in say, California... I will still be paying for my house (and taxes) in Ohio. When I rent a place while I travel, I can't be taxed twice, so the agency will give me tax-free money to pay for my rent? Please correct me if I'm wrong, I won't be offended...

How will that look when I go to do my taxes, still claiming myself as an Ohio resident?

I still have a lot to learn!! Good thing I haven't quit my day job!

Kind of the right thought process. But really, it isn't possible to tell you everything in a forum post, you need to do the reading. A give and take on isolated questions can even be misleading. Per the other poster for example, you cannot just plunk down and declare it to be your tax home, even though that looks like it fits my big picture post.

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I have not quite figured out how to search on here yet for a specific topic so forgive me if this has been asked somewhere else... However, my question is can you use a parents house for a tax home or do you have to live on your own first in like an apartment or buy a house?

I would suggest taking the advice from my prior post and do a lot of reading on PanTravelers and TravelTax on this topic. Yes, recruiters may tell you to "just use your parent's address" but they will not be responsible or present during your audit where after only a few years of travel, the back taxes, penalties, and interest could add up to over $50,000. The risk may be relatively low that you get caught, but if you do! You need a valid tax home if you want to get tax free reimbursements or provided housing from agencies.

Look at it from the IRS auditors point of view. Business expenses are supposed to be real. If you take an address of convenience such as your parents, moving from the place you previously had a history at and a staff job at the exact time of you taking a travel job, perhaps not even paying rent or establishing ties with a local physician, voting, driver's license and such, that looks like a completely artificial attempt to change ordinary income into non-taxable reimbursements you are not entitled to.

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Specializes in Psych.

This topic can be super confusing. I had alot of questions after reading pan travelers, travel tax, and the forums. I would suggest after reading up on it call or email Travel Tax. They were nice enough to speak with me free of charge for about 30 minutes and answer all of my questions and explain everything to me. I will definitely be using them for my taxes.

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Specializes in Cardiac Stepdown.

Cool... I own a house but am looking to downsize while I travel to save on expenses. So I just wasn't sure if I needed an apartment to replace my house or if I just needed to buy another one... thanks for the input...

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If your house is appropriately sized, and the area needs are conducive, get a roommate! If you have a room in your house for your exclusive use, you have the larger part of your tax home requirements taken care of. The roommate gets a killer deal, no owner present for most of the year, and a whole house for much less than market. You get home maintenance costs paid for and a good bit towards your mortgage/taxes. You may even be able to get your roommate to help with your mail. And you get the full tax benefits of traveling, worth around $10,000 a year for most travelers. That is pretty much a win. You do have to declare the rent as income, but that is fairly trivial and you could depreciate your house to partly compensate.

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