Tax time and questions

[flapcalif]

I'm in process of doing my taxes for last year. I started traveling last year in July and I haven't taken a break since I started.

I work as a traveler Hospice RN.

I was told last year by a fellow traveler to save all my receipts. I.E gas, groceries, meals. But I'm confused since I get a stipend why should I save my receipts? Especially the fuel receipts as I get paid .56 cents a mile when using my vehicle to go to patient to patient homes.

At any rate I did save all my receipts at his recommendation and I went to a tax person and he told me that he is going to research the stipend but he is nearly sure I can't itemize these receipts. But I can use receipts for a nursing bag, stethoscope scrubs etc. Whatever the job requires me to use for the job.

My second question is this.

I just extended my contract again with the same place. This new contract starts at the end of April and runs until the end of July. I know that the IRS considers a traveler not being a traveler if they work travel nursing for a year. The traveler is considered permanent if they work as a traveler for one straight year.

I will be 4 days over the one year mark in July when the new contract ends. Is there a grace period of days after one year or is it exact?

thanks in advance

[NedRN]

For starters, you need a specialist for your taxes, not someone who needs to research business travel. TravelTax is the best known one, and there are 3 or 4 other specialists listed on PanTravelers links page. That said, your guy is largely right. If your actual expenses exceed your stipends, then you can itemize the difference after meeting thresholds. It seldom works out better though unless you already itemize (because of a mortgage for example). Some receipts may be helpful in an audit to prove you did incur expenses at the travel location and did not just stay with Aunt Betty. But you don't need to, your contract proves your business purpose. I do keep my time sheets for a number of tax reasons though. In your case, I would keep a copy of your mileage logs too in case the IRS questions those reimbursements.

Do you maintain a tax home (a residence you can return to at any time) and are traveling far enough away that you require lodging? Without a tax home, all your compensation including provided housing is fully taxable and your question is moot.

As far as your tax home shifting, that occurs when you take either an open ended job, or intend to stay over one year in the same general area (for example in one metro area). In your case, you lost your previous tax home if you had one and your tax free benefits today when you agreed to extend past one year. This is true even if you quit or get fired before that one year anniversary. By the way, your business year includes travel time, not just your first and last day of work.

[flapcalif]

I do have a tax home and it's about 400 miles away

[NedRN]

Not any more.

[PacoUSA, BSN, RN]

I just extended my contract again with the same place. This new contract starts at the end of April and runs until the end of July. I know that the IRS considers a traveler not being a traveler if they work travel nursing for a year. The traveler is considered permanent if they work as a traveler for one straight year.

This only applies if you work in the same location for a year or more, not if you take different assignments around the country within that same year that are all at least 50 or so miles away from your primary tax residence.

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