Do travel nurses make more$?

[jab3da]

I guess I'll need to talk to a tax professional, but reading posts has me a bit scared as far as the housing stipend goes.... I was always under the impression that there was more money in traveling. It's not the only reason but I have a lot of student loans I don't want to drown in forever. Tax home...that's the issue. If I'm living with my parents for free I'm guessing that doesn't count. (Unfortunately I am still paying my half of rent on an apt my ex and I shared till August. I'd claim that as my residence, but its a different state and would void my compact license.) The hourly rates the recruiter went over aren't much more than I make now...like maybe a dollar. So will I just be screwed next year when taxes come around?? Does everyone really keep a house while traveling?? Doesn't that kind of void out all the extra money when you take the housing stipend? What am I missing here? I've heard there are completion bonuses but how often do those actually happen?

[NedRN]

So what if I take the housing that they provide instead of the stipend. Will I get taxed for that down the road, too, if I don't have a tax home?

If the agency understands that you are itinerant, then they should be withholding taxes for those taxable benefits, including housing. If they don't, it is very unlikely that you will have to pay down the road unless you want to be brave and honest. If they don't report housing as a taxable benefit, the IRS has no record of that associated with you. If you are audited down the road for any other reason, and you show the IRS your contracts (don't), then there is a possibility that you will have to pay back taxes, interest, and penalties. However, I have talked to several travelers who have been audited, and this has been completely missed in each case.

The reason is that the IRS goes after the deep pockets first, the employers. It is usually they that have to pay back taxes on housing. Just too much trouble to go after individual taxpayers for chump change. That said, the IRS is currently investigating a number of agencies, and they will often pick a few random travelers to audit so they can get the full picture of what the agency is doing. So your risk is not zero, although it is low, and picking agencies that do things right is healthier. Likewise, making sure your tax home ducks are in order is also healthier, as is insisting that taxes be withheld appropriately if you don't have a tax home.

[79Tango]

Ned is correct, if you wanted to truly wanted to CYA you could have your bills go to your parents mailbox.

[jab3da]

My bills already go to my parents house and they will continue to go there while I'm traveling.

[Renee001]

I work for a travel agency and I accept the housing that the agency provides. When they provide the housing, the situation is out of the employees hands! Make sure you sign up with an agency that is doing things right.