what to do with all the licenses

My original license is from WI (compact state, so I keep it current), but I also maintain licenses in FL & CA. I will just pay the fee to renew them every 2 years- that way, I can take an assignment in those states whenever I want, without worrying about whether my license is expired or not....

If you have licenses that you don't expect to use again, I would recommend placing them on "inactive" status rather than simply letting them expire or lapse.

In some states, if you allow a license to expire without officially placing it on inactive status, you will be required to pay a hefty fee to reinstate it in the future. On the other hand, if you make the license inactive, you can usually reinstate it with without owing any back fees or penalties.

But if one does not maintain a legal residence in that state, then the compact part of it becomes null and void. Even with keeping that license current, one must maintain a legal residence there to keep the compact part of it in place.

Right, but what I'm saying is, if you have a compact license from your home state, and will be traveling while maintaining that state as your "home", it is best to keep the compact license current as long as you are a resident of your "home" state, that way you'll have it if you ever choose to take an assignment in a compact state....

residency and a tax home are not necessarily the same thing... you can be a resident of a state, without that state being your tax home. For example, I am a resident of my home state- I am registered to vote there, my vehicle is registered there, my mail gets sent there, my driver's license is from there, and my permanent address is there, SO, I can use my compact license from that state in other compact states, because I am a legal resident of that state, and I have not established residency in another state. BUT, because I don't own a home or pay rent in my home state, for tax purposes, I don't have a "tax home"- I am considered an itinerant worker, and I just pay taxes in whichever state I am working in, which also means I pay taxes on my housing....

Below is an excerpt from the following article: http://www.traveltax.com/Articles/10%20Dos%20and%20Donts%20Nursing%202005.pdf

"Although you won't file a tax return as a resident (unless it's also your tax home), you'll need to pay tax on what you earn there. When you file as a resident in your home state, you'll pay tax on those same earnings, but you'll get a tax credit for the amount you paid to other states (up to the amount that your home state would normally charge)."

So, for example, in my case, since I don't have a tax home, I pay income taxes as a "non-resident" to the states I worked in only on income I earned in that particular state. Then, in my home state, where I am a legal resident, but do not maintain a "tax home", I get charged for taxes on that same income earned in the other states, but then get credit for state taxes paid on that income to the other states- which results in me "breaking even" with my home state (this year I actually came out ahead by about $30). This prevents me from paying taxes twice on the same income....

Because I pay taxes in other states as a "non-resident", my state of primary residence (WI) remains my home state, and my compact license in my home state remains eligible for compact status (according to article 441.50(4 c, d) of the WI Nurse Licensure Compact: http://www.legis.state.wi.us/statutes/Stat0441.pdf )