Returning to Perm Tax Home: when & how long?

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Does anyone know about the rules on declaring a permanent tax home? I know I can read the IRS publication but I would rather have it explained by fellow travelers. Just wondering when I need to return to it and how long I have to stay...

I've also heard different things like...if you have a 1 year contract you have to go home for 30 days...or you have to go home for 30 days in a span of 2 years...or it doesn't matter as long as you have proof if residency like a drivers license, car registration and rent. Which one is true??

Specializes in OB.

This seems to be a bit of a "gray area". There have been a lot of posts on this topic on the Delphiforums Travel Nurses and Therapist's board. If you go there, look for posts on the tax home issue by Bill (RoadTripDriver). He's one of those people who is very knowlegeable on many topics and has posted a lot of info on this topic!

Specializes in Every area of M/S.

hey there is a book that is real helpful called "a guide to travel nursing" by Shalon Kearney. It has a very short chapter on tax issues. It basically said that you need to have as much proof of residence as possible. Examples are register to vote, register your car, pay rent to a friend or family member, pay mortgage, have a bank account, etc. You cant rent out your room to someone else if you rent while you travel and you cant be gone from your permanent residence more than 1 yr w/o having to go back for a short time or they dont consider that your actual permanent residence. Well, those are the rules I'm going on, so hope that helps.

There is no actual "tax law" with a number of days that you need to be at your permanent residence. But, as the others have said, you must maintain a "relationship" with your permanent tax home: ie - drivers license, registering to vote, doctors appts, getting mail, etc. Some people have thrown around the 30 day notion (no basis in the law). You just need to remember to go "home" at sometime during the year and go to the dentist, doctor, etc.

One thing to be aware of, though, is that some states have residency limitations. In other words, if you work in that state for more than "so many months", you automaticly become a resident of that state. So, really, in an assignment in any one place for more than 6 months, you need to check with the state you are in. CA is 9 months.

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