Itinerant worker- no tax home- anyone done this?

Specialties Travel

Published

Hi!

I will be taking a travel nursing assignment in CA, with the thought that I might move there permanetly. I might also do a couple other assignments around the country after this one... but I see myself eventually in CA. I do not anticipate ever returning to MN, where I currently live. I do not think I can maintain any sort of "tax home" here in MN as I currently rent and will not be keeping any sort of address here and will not be coming back to visit. I suppose I could say that I live with my parents in WI as a tax home... but I doubt that would hold up to IRS scruteny. Has anyone been in this situation? I've read about filing as an itinerant worker, meaning "wherever I go, there I am" and that's my tax home. I've read that this would cost me lots of $$$, but I'm not sure how... the agency is providing me with an apt. Would I have to pay tax on the apt $$$ if I made CA my tax home? Even if so, CA state tax is 6% and 6% of, say, a $1500 housing pay is $90... not fun to have to pay, but not the end of the world. Is that all the penalty would be? WI state tax is higher than CA so maybe it wouldn't be such a bad thing? VERY confused... can anyone help?

Thanks,

Chey

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Specializes in ER, NICU, NSY and some other stuff.

As far as travel nursing goes if you lose your tax base home you lose the travel benefits. THat is you get the tax free stipend for meals and incedentals that you get as a traveler. It will also affect your housing stipend because as a traveler that too is tax free, it would them be taxed. It would probably be wise to maintain a tax home until you decide where it is you want to settle down. YOur parents would be a good idea. Pay them a nominal rent get mail delivered there etc.

A good place to get more info on this http://www.delphiforums.com go to traveles and therapists. there are many in there who are far more knowledgable than myself who can give you good advice.

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Specializes in med/surg, rural, ER.

I too am trying to figure out this whole residence thing. It sounds like we are in the same boat... going to travel, don't have a permanent residence, wondering about the legality of claiming to live at parents' home. I am wondering about just being an itinerant worker and losing the traveler advantages, but staying legal and guilt free. I don't want to save some money at the cost of my conscience (and a possible IRS audit making me lose the money anyway) I would love some more advice on this topic!

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Specializes in med/surg, rural, ER.

I am continuing to do more research on the topic. I don't have my questions answered, :uhoh3: but am more informed and believe I am closer to understanding it all... check out these two links:

http://www.findarticles.com/p/articles/mi_qa3689/is_200411/ai_n9464124

http://www.traveltax.com/Articles/ 10%20Dos%20and%20Donts%20Nursing%202005.pdf

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