Travel Nurse Tax Question

[MedicineAndMuscles]

Hi everyone!

I’m a new travel nurse finishing up my first assignment and honestly, I am a little nervous for being flagged for tax evasion, even though I am not quite sure if I even fit criterion for that. I will meet with a tax specialist regardless, just looking for some insight until then.

So, here’s the breakdown:

My first assignment is a 1 hour and 30 minutes away from my hometown. I have a permant residence that I pay $500 rent/utilities for. I also pay $312.50 (half of the rent! for rent at my current assignments place of residence. Which is fair for the region; therefore, that part shouldn’t be an issue.

I truthfully travel back and forth after my 3 days, but I am staying in the town of my assignment for the 3 days I do work.

My weekly “not taxable” stipend is around $650 weekly (total). Includes everything including food.

I am paying for both permanent residences, but I would like to be prepared if I do get audited. Do you think this is sufficient? I am keeping receipts of my rent payments to both facilities, but my travel company doesn’t know I’m driving back and forth each week despite only being an hour and a half away. How do I justify the other $2000+ in untaxable income per month? Mind you, some of that would be “food,” but still, makes me nervous.

My hourly rate is around $25, so my pay isn’t all that much for travelers and I claim 0 on my taxes. I want to maximize my return too, any suggestions? Obviously, not asking for legal advice and I’m aware nobody can do that, but I figured I would reach out to one of my favorite sites before my meeting!

[NedRN]

Why do you refer to two permanent residences? Is this travel gig your sole place of employment and at one location only? If so, you will be in trouble if audited.

If you are a legitimate traveler, you don't have to worry about unreported income, it is not income: technically expense reimbursement. If you qualify as working away from home on business, you can spend this money anyway you like, nor do you have to have receipts that cover these reimbursements (although housing receipts would be needed but again don't have to cover actual cost). Reimbursements are not reported to the IRS by your company (think about a business traveler being reimbursed for hotel costs out of pocket), so while it might feel like under the table money, it does not have to be reported by you on your income taxes the way, say tips, would have to.