Questions about Travelling - Tax

bagladyrn, RN · Aug 3, 2003

If you travel without a qualifying tax residence (not necessarily a home you own) you will be taxed on such things as your housing subsidy and I believe travel reimbursements.

Go to delphiforums.com to Travel Nurses and Therapists - this question comes up frequently there and a lot of good information has been posted (especially the posts by a guy named Bill who posts as Roadtripdriver) as well as links to the relevant IRS sites for info on this.

kdm05 · Aug 5, 2003

You must keep a permanent address for a lot of reasons, maybe you have a friend or relative who will let you use their address. The tax free per diem program applies to travelers and this is a great way to make more money. I would be happy to explain the details to you so please give me a call.

Kathy Taylor

Bridge Staffing

bridgestaffing.com

866-661-7070

rncopper · Aug 5, 2003

The only caution I would give concerning using someone's address (without compensation to that person, ie - "rent"):

If you are audited, and you are living there "free", you take the chance of being determined "itinerate", especially if you have no ties to that site (car registration, voter registration, doctor visits, keeping your stuff there). IF you state you pay them "rent", by law, they should report that income on their income tax.

I have heard about "mail-forwarding" places that travelers use for their "home residence". I question the legality of this; I am to much of a 'fraidy-cat to try it. I have always kept an apartment, and now a house (rent was only $250/month and now the mortgage is

:confused:

Of course, the travel companies don't care if you pay "rent" or not, or keep your stuff there. You usually fill out a questionaire, or sign a statement, that you have a "permanent residence". That way, if you are audited, they are off the hook for providing you with a tax advantage program.

icu_rn_bsn2000 · Aug 29, 2003

the tax issue is something new to me. I own a home in kansas which I am renting out and have a PO box in Kansas as well. I am maintaining my Kansas driver license and car registrations. I am working in California. I received paperwork from my company in regards to taxes. It's a permanent tax residence declaration. I'm not sure if i should use california or kansas. Any suggestions?

Louise

skdauriaRNC · Aug 30, 2003

ICURNBSN2000-definately declare kansas. however there is some fine print on the declarations usually about how long you have been away from home and working in the same general area. Read the declaration carefully and ask your recruiter and/or co.'s representatives to explain any of the terminology you dont understand. Also-consult your tax man...yes you need a tax man if you dont already have one. Traveling incorperates lots of tax issues and you need to be aware of the perks and the disadvantages too! Good luck.

taraleigh · Sep 27, 2003

I have similar questions about taxes. I gave up my apartment back home to travel thinking that I would save $$$. Now I'm learning that I'm losing over half of my gross pay to TAXES! This SUCKS! I'm afraid to say that I'm paying rent to a friend when I'm not...even though she is keeping stuff for me. What should I do??

rayk · Oct 28, 2003

Hello Taraleigh. I am the CEO of Health Force and have found you are not alone when it comes to this issue. I have a accounting firm that I am willing to contact to get answers to your questions. This way it will be an independent answer to your concerns. We are researching and will be publishing tax information and advice on the web in the very near future. my email is [email protected] or call at 800-811-6062 and I will get you answers to your questions. Have a great day!

Ken

bellehill, RN · Oct 29, 2003

My husband and I sold our house in order to travel. We were claiming a permanent residence until we spoke to an accountant who told us we would have to pay approx. $500.00/mo to our permanent residence in order for it to be legit (It has to be a substantial monthly expense). The person you are paying the money to then has to claim it as income, that is the problem. We decided to go legit and stopped claiming, the taxes taken out each month are less than what we would have to pay.

We have driver's licenses with my mother-in-law's address and she gets most of our mail and forwards it. I would suggest talking to an accountant...you will need one anyhow once you start working in all these states who all have different tax forms and laws. Good luck with you travels!

skybirdrising · Nov 24, 2003

Make your permanent residence in a state that has no state income tax. I'd probably look into making Alaska a permanent residency because after two years you get a huge kickback every year from Alaska for being a resident. Who cares if you actually 'live' and 'work' there? Just set up residency there and maybe on occasion, one time a year, take a 7 week gig to make it look good.

rncopper · Nov 24, 2003

The Alaskan residency "oil field" kickback has decreased substantially every year.

At one time, it was over $10,000/person! Now, it is about $1000-1200. Really doesn't seem worth it versus the high cost of living up there!

Of course, JMHO!

(Just an aside, they are really trying to get rid of it. Have tried the last 2 years and it was a pretty close call)

rayk · Nov 24, 2003

We have a good article available on our website that I think you will find usefull. Go to http://www.health-force.com and register.

Ken