Hey everyone! So I am considering travel nursing starting in August; however, I am so confused about how to set up my tax home. We do NOT own property. So here is what I was thinking, but please let me know which would be better:
1. My mom rents, I was going to ask her to be added to her lease, pay half her rent and (since she doesn't make much) help both of us out without her needing to claim my rent as income. She lives in the same city that I have lived in for the past year.
2. My husband's parents own a home and I was thinking that we could pay them rent and have them deduct it. However, neither one of us has a job in Oregon. My husband will be attending school online and so he will be actually travelling with me. Also, we do not live currently in Oregon, so I thought this may look weird on our taxes because we would have moved out there and then I would never have lived there before???
I don't know which to do or whether what I am thinking makes sense. Any advice would be welcome! Thank you so much
Those are great questions. Not a tax professional but I'd say a lease with your mom (or anyone else in the same area) under the circumstances you describe sounds very solid. I'd recommend a consult about the second situation with a tax professional, and not a local one but one who specializes in travelers. The are the experts in tax homes - a subject that seldom comes up for other accountants.
TravelTax offers free phone consults about tax homes. If you have him do your taxes, he will also represent you if you are audited as part of the bargain. This is a pretty standard arrangement by tax professionals, and there are other choices of tax professionals who specialize in traveler taxes besides TravelTax. A list of other known specialists can be found on PanTravelers. TravelTax is the best known and also advises agencies and helps set standards working with the national agency association.
Remember that you will need to pay an Oregon state income tax as well as federal + whatever state you work in.
Id do the option with your mom too. Get your licenses going to that address too. Our primary residence is in Oregon, i work in CA primarily. You have to make sure to move locations every couple of assignments though so that place doesnt become your defacto tax home.
Thank you to both of you so much! I was kind of figuring that I should use my mom, but your reasoning has made it even clearer. I will definitely contact TravelTax. Thank you so much!
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