Tax information for travelers

1940Nurse · Jun 13, 2006

I am interested in travel nursing and have been reading the posts on this website with interest. I am looking at eventually going to California with my wife and kids. I own a home in another state in the Southeast. Can anyone give me any information about how long you can remain in a state such as California while still maintaining your tax home in your home state?
Do you have to go back to your home state to work again within a certain amount of time? If you were to lose your tax home status, would your housing allowance and other benefits provided by the travel company impact your tax obligations significantly? Any feedback would be appreciated!

www.irs.gov Read, reread, and then reread pub 463..

Good luck,

antona · Jun 18, 2006

From what I have heard:

As far as the fed gov is concerned, you can stay in one area for 365 days and still have it be considered a temp position. Calif may consider you a resident after 6 mths though and require you to be taxed by the state as a resident.

If you stay past the 365 days, it will majorly effect you tax wise, especially if you are paid on the tax advantage system. You will also lose the ability to claim alot of deductions. Housing costs paid by your employer will be taxed as income.

Most people recommend staying away from an area for at least a year after you have worked there for a year.

You have to be able to prove residency and attachment to your tax home, but supposedly, you don't have to work there ever.

Hope it's not too confusing.

newfienurse · Jun 20, 2006

Has anyone had to prove attachment to their tax home? If so, exactly what did you need to do that? If I'm not looking for itemized deductions & have worked using the tax advantge plan, can I just do my own taxes as I always do? Sorry, I'm new to travelling & just want to be prepared come tax time. Not looking for "professional advice", just would like to hear what experiences others have had. Thanx!

1940Nurse · Jun 20, 2006

Has anyone had to prove attachment to their tax home? If so, exactly what did you need to do that? If I'm not looking for itemized deductions & have worked using the tax advantge plan, can I just do my own taxes as I always do? Sorry, I'm new to travelling & just want to be prepared come tax time. Not looking for "professional advice", just would like to hear what experiences others have had. Thanx!

If you have taken perdiem money you will need to prove you have duplicated expenses or that money will be considered taxable.

To prove a an attachment to a "tax home" you should vote their ( I do absentee ballot) have your vehicle registered there, go to the dentist, or doctor there. Pay some sort of mortgage or rent but then again you could own outright.

I've been doing my own taxes for over 20 years even the last 4 when I've traveled. The federal isn't nearly as difficult as each state is. You get so you know the nuances of the federal but every state has particular quirks.

Good luck

Again read pub 463 it will tell you how to determine if you have a legit tax home.