Tax Benefits besides "Housing"

NedRN · Jul 22, 2013

For starters, if you don't itemize already, you are unlikely to benefit from itemizing versus finding an agency that maximizes tax free reimbursements. Even if you do itemize, you will still almost certainly get more benefit from working for the right agency before climbing over various category thresholds on your 1040.

Also, it bears mentioning that you need to maintain a legitimate tax home to be able to receive any tax free reimbursements or itemize expenses. That requires a residence you can return home to at any time, and one in which has provable expenses in maintaining such as rent, mortgage, or property taxes. There are some other elements required as well, and if this is your first assignment, you need to lock these down now before you lose them.

If you do itemize, there are a number of things you can do. Travel expenses are a good place to start. Add up your mileage to and from the assignment to your tax home, and the total number of commute miles from your assignment housing to your assignment facility at 56.5 cents a mile this year. Subtract from that the travel reimbursement you received and deduct the balance.

Some tax experts say that you can do the exact same thing with meals and incidentals. Use the GSA per diem tables and add up all the days you are away from home including travel to and from. Form 2106 will reduce that amount by half, and then subtract the agency per diem reimbursements from that, and deduct the rest. If your agency doesn't specify your M&IE but pays you a combined M&IE and housing, calculate the M&IE as 40% of the total.

Housing is only a receipted actual cost deduction. Unless you spend more on housing than your agency reimburses you for, there is nothing to be gained there.

Those are the travel specific deductions. All the professional deductions you took as staff remain, education, scrubs, certifications and memberships. If you are required to pay for your own physical, titers, vaccinations, and drug screens, those are also deductible professional expenses.

I've been a traveler for 18 years and I have never itemized. Bought a house and there was still no benefit from itemizing. And I can promise you that I maximize my savings! (which is how I paid for the house)

jhayroe · Jul 26, 2013

I recommend checking out the traveltax.com This guy was a travel RT/accountant and can do your taxes, answer questions and there are also helpful worksheets for figuring out deductions. I am not good at accounting so this was an easier solution for me.

GreensAndNettles · Jul 28, 2013

Thank you NedRN! I am also just getting started with Travel Nursing and this is a big help!

NedRN · Jul 28, 2013

Thank you NedRN! I am also just getting started with Travel Nursing and this is a big help!

You are welcome! As jhayroe posted, TravelTax is a great resource as is PanTravelers.

chub_chubs · Jul 31, 2013

You are all so very knowledgeable. In the same vein, (pardon the pun) what should one focus on when it comes to tax advantages vs. the bottom line. The travel company's manipulation of: pay rate, per diem, overtime, etc, all seem like smoke and mirrors to me. Are they all basically the same? Is there a secret formula or should I just focus on the bottom line...how much I will take home per week?

NedRN · Jul 31, 2013

Your choice. Find a recruiter you like and pay you can live with and just be happy. The more you put into anything in life, the more you can take out. Rich people have amazingly complicated tax schemes, but the results are spectacular. Call it what you like, but minimizing your taxes means more money in the bank.

mustang_convt · Aug 10, 2013

Ned, you rock