tax home

NedRN · Nov 7, 2015

Then I heard we could keep it as long as we contribute to part of the mortgage/utilities, keep our NY drivers license, car registration etc and get back there 30 days a year. Has anyone heard of this?

No. It is possible someone was able to scam the IRS during an audit by showing "proof of residency" with utility and mortgage payments, but it wouldn't take much to break that story.

There is an alternative if your house is suitable. Get a roommate. Then the home is still yours, your roommate gets a usually empty house, and you get someone to look after it and deal with mail.

You might be better off in NM, but changing locations just as you start traveling makes it more difficult to establish a legitimate tax location. If you can start off by taking a staff or per diem job there it would be better. Then you also have a more credible compact license as well.

AugustRN501, ASN, RN · Nov 7, 2015

Thanks Ned. My husband and I really play by the IRS rules and don't want to get in any trouble.

I have been a NM nurse before and it has been our tax home twice in the last 10 years. I don't know if we are ready to make all the changes needed to have that happen right now.

The roommate idea is a good one. I thought maybe even my nephew would be interested or even one of our kids might want to move home for really cheap rent. I'll look more into this.

Its all a little scary. I know what I made in CA as a permanent employee at $48/h. Everything was taxed of course and we paid for all our own food, housing, etc. The travelers I met at my permanent place actually made a less hourly wage, had paid housing and food stipend....and still made the same or even more than me. Seems too good to be true. Everyone I know who does it though loves it.

My hubby is retired and we love to travel. It just feels like the time to finally try it.

NedRN · Nov 7, 2015

Don't forget benefits. California staff nurses enjoy PTO, sick pay, holiday pay, vacation pay, education, good health insurance, and job security (most hospitals are unionized). Travel is similar to staff per diem, more hourly in lieu of benefits. But you get to travel! And stay out of politics, enjoy professional development, and so on.

I often consider going staff in California (am often offered jobs) but in my analysis, the finances are a wash for me (but I make more than most travelers). Still, I'm not taking benefits fully into account (probably because I don't want to be staff).

AugustRN501, ASN, RN · Nov 7, 2015

we moved "home" to western new York to spend some time with family. I took a $35-40K annual pay cut to do so. I work harder and am so less satisfied professionally for so much less money. I'm not as worried about not having the PTO since I would try to just take a week or two off between contracts to visit back here. I do have good health insurance now, BC/BS and pay about $350 a month for it.

The idea about getting to spend time in places like Seattle, Denver, the Southwest...and maybe even head back East to work also and see family that way is all so enticing. As a staff nurse I was only able to hit up Portland and Seattle for a long weekend at a time...once a year...after a 13 hour drive.

I really appreciate your feedback Ned. My traveler friends are giving me some good info to. Its really just fear of the unknown that is the hesitancy. (We have been our own "traveling company" for 5 years...I have worked in three states and several places in CA...as permanent staff with shorter terms up front. It was HELLA expensive moving all our stuff each time and paying all our own travel and living expenses)...

NedRN · Nov 7, 2015

There is no such thing as a "permanent" job - going staff is just an open ended travel assignment!

PTO is pretty nice for an extended illness, family emergency, or a newborn. It offers a security blanket that travel just cannot. Important for some, and highly recommended if you have chronic ailments. Travel can be good for cash in hand, but there are other considerations.

Julius Seizure · Nov 8, 2015

Here is a really helpful page to answer a lot of those confusing tax questions:

FAQ Traveling Tax Issues

Essentially your tax home must be proven by these things being true:

-You work in the area at least part of the year, and live in your home while you are working in the area

-You are duplicating expenses while you do travel contracts (paying rent AND a mortgage at the same time)

-You havent abandoned your home (you have a history of living there; family members are still living there, or you frequently visit your home)

Some travelers say that keeping a permanent home while traveling isnt worth it, and that it is better to just be an itinerant worker. Food for thought.

NedRN · Nov 8, 2015

That link is a good resource. However the bits you copied are highly misleading out of full context. You never have to work at your tax home although it does strengthen it. Some of us travel because there are not jobs at home. Rent or a mortgage is also not required, I own my home outright.

Bob Loblaw · Nov 9, 2015

I did some temporary work in CA and their California Franchise Tax Board is brutal- they don't care where your tax home is, they want to tax income earned in CA and they want to reach into your other income streams and have no hesitation to start out with threatening letters etc.

The travelers I know set up residencies in compact states with no state income tax. Get an address, register your car, and register to vote- where you vote is where you reside. But these are the travelers that live a vagabond life style- go contract to contract depending on season of year, places to explore etc-if i wasn't married I might take to the road. I watch them on the computer searching for their next gig, lining up Air BNB sublets etc. Its a whole different world.