Waiting all morning for Pantrav to approve my registration so I can use their calc. But here is the email from Flexcare that I am supposed to be excited over. This hosp is 3 hours away from me and is nowhere near Chicago. Oh, and Fx does not offer housing:
Update on what I learned from travel tax expert. If you don't own a home or contribute anything to that tax home ie rent utilities etc. That is not considered your tax home. In my case I do not have a tax home. But a permanent residence. I could be eligible for tax free stipends if I began to pay my parents rent based on market value per square foot based on the area I reside in. Or if I wanted to do travel nursing still I would have to have taxes taken out of everything. So this drastically impacts my future of travel nursing and moving forward..Though they said it is a low risk of being audited because lots of people do it. I however, don't want to put myself in a situation where I could find myself being audited. Plus I want to do things the correct and fair way.
Well, that is interesting. There is no doubt that you have a tax home there now. You live there and no where else, and all of your income derives from there. The question apparently is if you still have a tax home without expenses when you start traveling. I'm not convinced and I'd like to see some evidence. I'm sure this is the conservative advice and is the opinion of many tax experts, but often such opinions are made without actual IRS guidance, or even better, a tax court ruling. I think I will drop TravelTax an email myself and see if there is something solid behind this advice. It is rare with the IRS to have something black and white, and things like tax homes come down to a preponderance of the evidence.
Specializes in Complex pedi to LTC/SA & now a manager.
Looking for something else I found the IRS definition of tax home.
Tax Home
To determine whether you are traveling away from home, you must first determine the location of your tax home.
Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.
If you have more than one regular place of business, your tax home is your main place of business. See Main place of business or work , later.
If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. See No main place of business or work , later.
If you do not have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home.
Main place of business or work. If you have more than one place of work, consider the following when determining which one is your main place of business or work.
The total time you ordinarily spend in each place.
The level of your business activity in each place.
Whether your income from each place is significant or insignificant.
Example.
You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Cincinnati is your main place of work because you spend most of your time there and earn most of your income there.
No main place of business or work.
You may have a tax home even if you do not have a regular or main place of work. Your tax home may be the home where you regularly live.
Factors used to determine tax home. If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is.
1 You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.
2. You have living expenses at your main home that you duplicate because your business requires you to be away from that home.
3. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.
If you satisfy all three factors, your tax home is the home where you regularly live. If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses.
Ha, I have a copy of 463 on my laptop! I have read it many times and some other key IRS publications.
It is the living expenses that is the issue here. These future travelers certainly have duplicated expenses when they go on assignment, the only issue I see is who is required to pay those expenses at home. They live at home, and apparently never contribute cash for upkeep. I have emailed TravelTax, but I'll be surprised (but pleased) if he can give an answer or documentation that settles this issue.
I'd like to point out that on many issues there is disagreement between tax professionals and TravelTax takes a conservative view. For example, some tax professionals believe that all mileage on a business trip is tax deductible. Thus a rental car and gas is likewise 100% a business expense. Both TravelTax and I believe that is incorrect. Drive to Seattle from NY via Texas to visit relatives, that is extra personal miles. Is a trip to the grocery store business or personal? For similar reasons, a laptop is seldom deductible as a business expense as it is only 2% used for business at best (for most of us).
Conservative tax preparation is a good thing generally, but until I am enlightened further, I don't see a tax home swinging on the amount paid for expenses at home, whether fair market, above market cost, or as little as zero cost in these rare edge cases. The answer does not concern most of us really, I just find it interesting.
This whole issue doesn't have a clear cut black and white answer. Just had another recruiter call me before and yet again, had no idea this was an issue or that having a tax home or lack of means no tax stipends. Was trying to tell me a permanent address is same as a tax home. Needless to say she said she would get back to me shortly once she ask around...To me from everything i have read, it doesn't seem like I quality to have a tax home..
Specializes in Complex pedi to LTC/SA & now a manager.
The concept fascinates me as I used to help out in my late father's accounting office. He specialized in small business, corporations of one, home business/direct sales , and had a number of nurses as clients. Issues on travel for education purposes, mileage deduction (or reimbursement) for multiple jobs or home health nurses.
I recall him assisting with an IRS audit for a similar issue. The client wasn't a nurse but someone who travelled on contract for assignments similar to a travel nurse. It was about 8 years ago. The client's "permanent residence" was with his elderly parents in a retirement community. Had his own room. Didn't pay rent or electric/gas/sewer. Drivers license, registration, insurance were registered at parents' home. Once a year or so worked a few weeks out of a local office.
What cleared the audit for the expense test of tax home was the client had a separate phone line to his room that he paid for registered to the address and basic cable (parents were happy with network TV). They were argued as utilities expenses since both were regulated by the state board of public utilities. I don't know of this would help since nowadays many give up their landline for cell service. I don't think living expenses were declared as fully deductible as there was only some duplication (just like only 50% of meals are deductible for standard travel expenses).
What cleared the audit for the expense test of tax home was the client had a separate phone line to his room that he paid for registered to the address and basic cable (parents were happy with network TV). They were argued as utilities expenses since both were regulated by the state board of public utilities. I don't know of this would help since nowadays many give up their landline for cell service.
Thanks for your story!
I wonder if paying for a cell phone bill from my parents' address will suffice as a "living expense" and if it is necessary to send them rent while I'm away.
Specializes in Complex pedi to LTC/SA & now a manager.
Thanks for your story!
I wonder if paying for a cell phone bill from my parents' address will suffice as a "living expense" and if it is necessary to send them rent while I'm away.
Probably not. A landline qualified as a utility expense. Mobile phone is not under utilities. Do you pay rent now?
I don't pay rent or any utilities. I only pay for my car note, car insurance and student loans all of which are registered to my godparents' address. If it is relevant, I was living on my own then moved back in May bc I knew I would be traveling and did not want to sign a lease.
Specializes in Complex pedi to LTC/SA & now a manager.
I don't pay rent or any utilities. I only pay for my car note, car insurance and student loans all of which are registered to my godparents' address. If it is relevant, I was living on my own then moved back in May bc I knew I would be traveling and did not want to sign a lease.
Without expenses one of the options is to work in the area..maybe take a per diem agency job or vaccine clinic
I don't pay rent or any utilities. I only pay for my car note, car insurance and student loans all of which are registered to my godparents' address. If it is relevant, I was living on my own then moved back in May bc I knew I would be traveling and did not want to sign a lease.
Yes, very relevant. Changing an address to one of convenience when you start traveling is not a tax home. You do need to pay rent in an ongoing fashion.
Blessedone1
32 Posts
Update on what I learned from travel tax expert. If you don't own a home or contribute anything to that tax home ie rent utilities etc. That is not considered your tax home. In my case I do not have a tax home. But a permanent residence. I could be eligible for tax free stipends if I began to pay my parents rent based on market value per square foot based on the area I reside in. Or if I wanted to do travel nursing still I would have to have taxes taken out of everything. So this drastically impacts my future of travel nursing and moving forward..Though they said it is a low risk of being audited because lots of people do it. I however, don't want to put myself in a situation where I could find myself being audited. Plus I want to do things the correct and fair way.