Tax home question

[perfexion, ASN, RN]

I'm taking an assignment in California. The agency gave me a very generous housing stipend but the place I'd like to live while I'm in California costs the same as my rent in New Jersey (which costs a lot to maintain). I was looking at cheaper places but the area where i'm going to be working has a lot of crime and I have kids. The area I'm looking at costs more because it's safer. I plan to be there at least 6 months. Anyway, I was thinking of saving money by turning off my utilities at home. Does anyone else do this or do I have to consistently pay utilities as a part of "maintaining" my tax home?

Also I read online that some travelers just write their relatives a rent check every month and claim that as their tax home. Is that legal? My contract starts in January but my lease at home ends in March. I was thinking I'd just throw my stuff in storage while I'm in California until my contract ends and look for a new place in Jersey when it's over and use my aunts address in the interim. Is that legal? I don't want to get in trouble with the IRS but I can't leave my contract in order to move and I don't want to be itinerant. I tried to Google the answer but I don't really understand some of the tax jargon. Can anyone provide insight in plain English?

[Dinsey]

I'm sure NedRN will give you all the tax-related information, but turning off your utilities in the middle of winter could be disastrous - even in an apartment building your pipes could potentially freeze and cost you a lot more than you would ever save

[NedRN]

I turn my utilities off, and they are off now. I winterized my home first. Doing so will not cause you any trouble with the IRS, no tax code or law says you must pay for utilities!

You can use any address you want for convenience (you need some address for the IRS to contact you and for banks and such), but that doesn't make it a tax home. If you do what you suggest, it is legal, but yes you will be itinerant and owe taxes on all of your compensation, including housing. What makes it illegal (and yes, common for many travelers) is to claim you have a tax home and accept tax free stipends when you are not traveling away from home on business. Right?

I'm not sure I completely answered you, but there are thousands of words in pretty clear English on both PanTravelers and TravelTax on tax homes and their articles might narrow your question somewhat. I could write thousands of words here, but they may not be what you are looking for.

[perfexion, ASN, RN]

Thanks Ned. I did email travel tax but I haven't heard back from them yet. Moving while traveling is so much more complicated than I thought.

[bicyclenurse]

Travel Tax does sometimes take a few days to get back to you, but they are great with info.

Rooster

[NedRN]

If you use TravelTax for your returns and you get audited, he will be there with you for no additional charge. Fees are very reasonable and usually less than local preparers.

As a disclaimer, while I know him well, I prepare my own returns. I only cite him and his site as being one of the few tax experts for traveling healthcare professionals and the best known. He also advises agencies on how to do traveler compensation right.