Questions about housing stipend

Traveldee · Aug 3, 2013

Hi All,
I am considering travel nursing in Cali. I recently moved there for my husband's job, but we still have a home in another state that we are trying to rent. This move may be temporary. Am I able to get a housing stipend here as long as I maintain residency for my home state? That is, I have an address in that state and don't change over to a Cali driver's license and registration?
thanks!

What I've been told (double check to make sure tho) is you can get the tax free housing stipend if you maintain a permanent residence, but if you are renting out you house then you won't get the stipend tax free. Doesn't mean you can't get a stipend it will just be taxed.and whether or not you get a stipend depends on the company you work with.

21strawberry · Aug 3, 2013

Thanks, travelingdorsey, I appreciate your answer. Do you know about changing my driver's license and car stuff over? I would hate to ask the companies these questions and raise red flags...

NedRN · Aug 3, 2013

You have moved, open-ended. What you do in a week or 10 years later is then, not now. Every state has laws requiring you to change your license and registration and you can receive a ticket and fines. California has vigorous enforcement and you may note billboards with toll free numbers encouraging residents to turn in cheaters - like cars with out of state licenses parked in neighborhoods.

Red flags for agencies? That would only be if you are trying to mislead them about your tax status. You are a California resident and owe income taxes on all compensation including housing, per diems, and travel. If you don't pay taxes on that compensation, you will owe back taxes, interest, and penalties to the IRS and California. It is easier to pay small amounts now than huge chunks of cash you may not have later.

A house you are trying to rent cannot be a permanent residence that you can return to at any time.

21strawberry · Aug 3, 2013

Thanks, Ned. I definitely wanted to switch all my stuff over to CA just also attracted to the housing stipend. Guess I can't have my cake and eat it too...I am also in no way interested in not paying taxes! :)

I appreciate your candid response!

NedRN · Aug 3, 2013

OK to take a housing stipend, but the agency should tax it. Barring that (and they will be reluctant to do that as it will cost them payroll taxes), you can declare it as income yourself at the end of the year.

21strawberry · Aug 4, 2013

I really appreciate your help...this will be my first attempt at travel nursing. :)

21strawberry · Aug 4, 2013

So Ned, in your opinion, would I make more money as a staff nurse in Cali? My experience is PICU which seems to be in demand frequently...

NedRN · Aug 4, 2013

. Yes.

eager1hasbegun · Aug 10, 2013

From what I've read on most company websites, the housing stipend is not about which state you live or work in but rather your commuting time/distance. For my current agency, if I have to travel more than 50 miles to get to work, then I qualify for the stipend. I could live in Vermont and travel 30 minutes to my job in New Hampshire but that wouldn't qualify me for the stipend. But driving two hours from one Baltimore, Maryland to the Eastern Shore would get my housing taken care of. Make sense?

NedRN · Aug 10, 2013

Agencies have their internal rules for paying out housing stipends tax free. But that won't help you if you are audited by the IRS so it is better to go with their rules. There is no distance requirement, but if you commute to work, you don't qualify, period. I've met travelers willing to commute 75 miles each way. They don't qualify. They can of course take the stipend, but it is now ordinary income subject to taxes.

To qualify, the IRS states that if the nature of your work requires an "overnight" rest period for sleeping, then you qualify for tax free housing (assuming you have a legitimate tax home). This could even mean you live only a couple miles away if the job requires you to be on premises - say for on call at the hospital. A thirty mile commute may be too difficult for stacked 12 hour shifts. Like many tax "rules", business expenses such as housing are situational and a mileage threshold is not possible.