Question About Tax Homes and Shared Expenses

[mttzakr31]

I have a question about utilizing housing stipends and splitting expenses. So one of the things that I did not know when utilizing housing stipends and duplicating expenses, is that it is not acceptable to commute to your assignment from your tax home, and stay and pay for one, two or three nights in a hotel in the city you work in, work your shifts and then return home, so when you get housing on an assignment, it has to be for the entire duration of the contract that you need to pay for, and not just for a couple days. I am just trying to confirm if I am correct on this matter?

I also recently just moved from N.Y to Ohio, so I just changed my tax home. So going forward I am trying to make this part of my situation right, and I am just going to pay taxes on the reimbursements I earned.

My second question is, when splitting expenses for example, such as helping pay the mortgage and utilities, and I am living with a partner, what is an acceptable form of documentation for keeping records? Would a Venmo payment, check or online transaction suffice?  I have a concern because nothing is in my name bills wise. 

[NedRN]

You don't need utility bills to help establish a tax home, your mortgage is good enough (if it is yours or dually held). It would probably be good to have a contract between you and your partner defining what you each pay and what happens financially should you split. This question is completely separate from travel nurse tax issues other than you need some documentation of a full time residence and duplication of expenses required for a tax home.

As far as splitting your time between home and the work city, you would need a professional such as TravelTax to advise you as to what proportion of stipends it is proper to declare as income under your circumstances. 

But I can tell you the simple solution would indeed be to have a rental in the work city full time. It doesn't have to be very expensive if you are willing to house share for example. Advertise on Craigslist (or facebook?) that you are looking for a house share where you will only spend a few days a week. This could be very enticing to many. You would have to have an agreement that you can spend as much time there as you want to - needed to be legit, doesn't need to be in writing, but you cannot restrict your ability to be there full time in writing either. You can arrange the rent amount anyway you wish, at least one receipt in addition to the rental agreement.

The rental amount you end up with will probably be a bargain for both parties, and may not represent fair rent. But negotiations between unrelated private parties can be anywhere from silly low to a rip off - no need for fairness, just a meeting of the minds. Everyone wants a bargain, or an amazing return on investment. Generally you end up in middle ground and would never be a legitimate discussion in say Tax Court (which you will never see anyway).