tax home question

[rocket surgery]

I'm an RN in Houston, Texas and I'm starting to research travel nursing. My question is about tax homes. I own my own home and it is paid off. Since I am not currently paying mortgage or rent, does that mean that I don't have a tax home? I'm guessing the answer is no, but this tax stuff is confusing me.

Also, I was thinking of taking my initial travel assignment here in Houston, just to get a feel for how the "travel" bureaucracy works before actually getting out of town. And then possibly taking occasional future assignments here in Houston during the holidays to be close to my family. Would that somehow negatively affect my finances?

Thanks so much!

[NedRN]

No, you still have duplicated expenses for housing expenses so it still counts as a tax home. You pay property tax and maintenance. Costs of housing away from your tax home are business expenses and so deductible or reimbursable (technically for IRS purposes, that housing stipend is a reimbursement and provided housing would be a non-taxable benefit because of the business nature of the housing).

You can certainly do a local contract with the caveat if you commute from home, all your compensation is taxable. You may have to be very clear and firm with agencies about that.

But heck, get out of town! Other than working at an unfamiliar facility, there is no advantage. In fact, it may be a pay cut as you will have lost your staff benefits. At least if you are working away from home, the tax-free compensation may help compensate for those lost benefits.

[RNaroundSue]

If you rent your house out can it still count as your "TAX" home?

[NedRN]

That is a big no! In general, you need to have a residence that you can return to at any time as one of the requirements of a tax home. The workaround if your home is suited is to have a housemate, reserving a bedroom for your exclusive use. That is usually a big win-win for both parties, a private house for much of the year at the price of a share house, and someone to look after your house, keep you informed and check/forward important mail.

There is also a limited use exclusion to rent your house one time that I don't know much about. It may have been designed perhaps for house swaps. But it won't be a long term solution and the prior suggestion is the way to go if appropriate. The site TravelTax may have information on one time renting of your tax home.