define "tax home"

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Specializes in Adult & Peds psych, PICU, nsg mgmt.

I am currently renting an apartment. I intend to give up the apartment when I start travel nuring and use my parents' home as a base for mail and bills and a place to stay when I return home between assignments, and I also need that address on my driver's license. I would pay them rent for storing my stuff. In addition to paying rent and receiving bills there, do I need to physically reside at that address for a certain amount of time prior to traveling, in order for it to be considered a tax home?

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Specializes in Adult & Peds psych, PICU, nsg mgmt.

So, I'm likely to owe $4,000 in taxes if I don't maintain a tax home? Does anybody have any advice on if it's worth it to maintain an apartment for about $600 a month? I guess that's not a fair ? because it would depend on so many factors.

Any feedback on what some of you experienced travelers do or think about maintaining a tax home?

Thanks.

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Specializes in Peds, ER/Trauma.

I don't have a tax home. For me, it's easier and cheaper to just pay taxes on whatever my company spends on me for housing than to maintain a home in my "home" state. I end up paying an extra $50-75/week or so in taxes on my housing, but $200-300/month in extra taxes is much cheaper than the $800/month in rent I was paying back home. Just make sure your company knows you don't have a tax home, so they can include whatever they spend on your housing as part of your taxable income.

I still have my mail sent to my in-laws, they send it to my husband and I once a week, then we don't have to worry about having mail forwarded through the post office every time we move. Our cars are still registered in our home state as well. But, for tax purposes, because we don't pay rent or a mortgage in our home state, hour housing is not a duplicate expense and is therefore considered taxable.

FYI... some travelers will try to get around this by paying "rent" to a family member so they can claim this as their tax home. I wouldn't advise it. If you do this, your rent must be equal to what an average apartment would be in your area (meaning paying mom & dad $50/month for storage wouldn't cut it...). Also, you must have a lease signed, and the person you are paying rent to must then claim the rent as income and pay income taxes on it.

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Specializes in Adult & Peds psych, PICU, nsg mgmt.

Thanks! Your feedback is probably going to save me a lot of stress in the long run. I think forgetting about a tax home sounds a lot easier. If it's cheaper too, that'll just be a nice bomus. :-)

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Specializes in Adult & Peds psych, PICU, nsg mgmt.

I'm almost decided on not maintaining a tax home (seems like too much work!) but I'm curious about a few things...If you're an itinerant worker, how does that work?

Does the tax on the supplemental income get withheld or do you end up owing at tax time?

What about mileage reimbursement. How/when do they tax that? And your licenses? If I have a compact license now (WI) and travel to Colorado without maintaining a tax home in WI, is my compact license valid?

I'm not traveling for a few months yet, but I want to know what to expect and what's appropriate before I start.

Is there anything else anybody can think of that I should know?

Thanks in advance.

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