Published Aug 8, 2007
iLovemyJackRT
150 Posts
I live about 50 miles outside philadelphia, how far away do you have to live from somewhere to be considered able to travel there....I would love to be able to "travel" there, make the money, and live there ( which I want to do anyway ) would 50 miles be far enough away to be considered able to travel to philadelphia.....Any input would be great ! thanks !!!!
Brooke
biteme
8 Posts
50 miles is the distance for per diem. So you should be okay.
bagladyrn, RN
2,286 Posts
There is no actual "50 mile rule" with the IRS. It is simply that the contract must be far away enough from your tax home that you would need to sleep before driving home (too far to commute). The reason many travel companies use 50 miles is that that is the requirement the IRS uses for legislators to deduct costs when at the state capitol for sessions. They figure it is a safe number. Some hospitals will also specify that they will not accept nurses who live within a specific distance because they want staff - they don't want "their" nurses quitting staff and coming back as travelers.
loricatus
1,446 Posts
Can you actually quit and later come back as a traveler?
I guess it sort of depends on the circumstances under which you leave the job. I left my last position with a full month's notice, giving my reason for quitting as a desire to travel and to be able to spend time with my parents in another state, not citing any problems with the current employer. I made a point of saying I thought I would be able to function well as a traveler because of the excellent training I had at that job. (Yes I can b.s. with the best of them, but I sound very sincere)
I have actually gone back to two of the hospitals at which I had worked staff as a traveler with no problems.
pinkeyICU
21 Posts
I am also looking into traveling.....one company can get me a contract with a local hospital b/c the hospital has no rule against how close/far a nurse can live. I still get the housing reimbursement from the travel company, but no mileage....If it were 50 miles away, then 75% of the housing stipend only would be tax free is what I've been told by numerous companies.
Oh...and if more than 50 miles away the travel company would reimbures 36 cents/mile.
I just quit a hospital (on good terms) that has a rule that they won't hire any agency or travelers who have worked for the hospital within the past year.....so I'll wait a year and got back as agency and make 2X as much & no low census!
suzanne4, RN
26,410 Posts
I am also looking into traveling.....one company can get me a contract with a local hospital b/c the hospital has no rule against how close/far a nurse can live. I still get the housing reimbursement from the travel company, but no mileage....If it were 50 miles away, then 75% of the housing stipend only would be tax free is what I've been told by numerous companies.Oh...and if more than 50 miles away the travel company would reimbures 36 cents/mile. I just quit a hospital (on good terms) that has a rule that they won't hire any agency or travelers who have worked for the hospital within the past year.....so I'll wait a year and got back as agency and make 2X as much & no low census!
You may get the housing reimbursement but it will not be tax deductible for you. And if you are not having a tax base as your set home, then there is no deduction for the travel. Not sure where the 75% is coming from as there is no rule like that on the tax books. You will be paying raxes on all of it so getting a travel assignment may not be in your best interest. You may be better off with a per diem assignment at the facility since the rate will be higher and you get staff benefits that you do not get as a travel nurse when at most assignments.
Please do not listen to what an agency is telling you concerning taxes, have seen too many of them wrong in what they have told people. Would recommend that you contact yuor tax professional to see what will work best in your circumstance.
You may get the housing reimbursement but it will not be tax deductible for you. And if you are not having a tax base as your set home, then there is no deduction for the travel. Not sure where the 75% is coming from as there is no rule like that on the tax books. You will be paying raxes on all of it so getting a travel assignment may not be in your best interest. You may be better off with a per diem assignment at the facility since the rate will be higher and you get staff benefits that you do not get as a travel nurse when at most assignments.Please do not listen to what an agency is telling you concerning taxes, have seen too many of them wrong in what they have told people. Would recommend that you contact yuor tax professional to see what will work best in your circumstance.
:nuke:Thanks. Actually was my CPA who said if more than 50 miles, safe to write off 75% of housing stipend. Not that it was a "written rule" just that it is the "accepted norm" for housing stipend regardless of industry. Since this post I have actually decided to go perdiem at the same hospital, b/c I don't want to get into something I cannot easily get out of!
Sorry, but you cannot write off the housing stipend if you do not have a second place that you are paying for. If it is to be used towards your regular and only payment, then it cannot be written off.
And that is not the norm for any industry if you do not have aa tax base home and then are travelling from that one place to work and have to pay for a second place to use to sleep in. Otherwise, you are subject to having to pay a large sum to the government if they audit you.
I would definitely not take this person's advice, since it is completely different from any other CPA that I have ever consulted with. And housing stipend is only paid as that when there is another tax home, otherwise the agency is not following what they have been told as well.
Suzanne4 - thank you for your concern. Kind of a moot point since I'm not traveling, but the advice was based upon the fact that if greater than 50 miles from home I would be blocking my shifts & sleeping in a hotel/eating out for 3 nights vs taking the one bedroom apartment offered. The rule is not particularly 50 miles, it is the amount that can be safely traveled back to your home to sleep between shifts....50 miles is considered safe by most tax advisors.
If itemizing deductions, a certain amount of per-diem pay (this meaning the amount an employer gives you for meals, housing while not at your "home base") is tax deductible. My husband travels (for another industry, not nursing) and we have a schedule of the amount of perdiem the government considers allowable for each city to which he travels throughout the year. If the company pays more than that, the excess cannot be deducted. IF he spends less than that, the actual amount spent is to be deducted.
Of course EVERYONE should check with his/her own tax advisor prior to assuming any advice seen here or elsewhere applies to his/her particular situation.