yes or no?

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I've been a traveler for almost a year at the same hospital. The hospital system has several large hospitals under its umbrella. I'd like to be submitted to a different hospital 2 hours away from my current assignment, again, different hospital, but same health system - is there any tax rule to be broken if I do this?

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Your tax home will shift the day you sign a contract that extends your stay in the same general area over one year. So a hard ass IRS examiner could make a case that if you had lodgings halfway between the two assignments that you could commute from both thus establishing a local tax home. Probably won't happen, but you might consult Travel Tax on the matter (a free phone consult). Seems like you could make the case that even an hour away is not practical.

In my specialty, I'm almost always have to take call with a 30 minute response time. Another excuse could be traffic or seasonal conditions. Personally, I think you will be OK even if audited. But that is not a professional opinion and I won't be there at your audit.

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Hello Ned!

I started this assignment last May, and then took 9 weeks off from Aug-Nov. When I came back in November, did the clock restart?

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Nope. Think about a ruler with 12 inches representing 12 months. If you put that on a linear month calendar, and during any continuous 12 month period you worked only in the same area, IRS will rule that is now your tax home. As I mentioned in the last post, at the point where you are committed to going over that 12 month period is when your tax home shifts, not at the moment you pass 12 months. Or when you abandon your previous tax home. Lots of ways to shift your tax status, sometimes without realizing it. Get a consult with a tax expert. But if the pay is good enough, you might not mind a tax home move. And you won't have to pay taxes in your former state any more, even if you maintain your residence there. But you will have to pay taxes on your stipends.

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Specializes in Med/Surg/Infection Control/Geriatrics.

You should be directing this question to either an accountant or the IRS. Your agency won't tell you.

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Specializes in Emergency Department.

Raindrop,

Here's an authority on the subject:

"How long can I stay? When can I come back?

Please note that you will not find this guide anywhere in the IRS code. They are notoriously vague with their terms. As a result, we have striven to develop a few concrete suggestions for travelers. They are based on court cases (by citing records) and audits (personal experience). If you follow the guidelines below, you will be in a more defend-able position if audited. The things you need to look at is 3-fold.

1- Spend AROUND 30 days a year at home. - Not a magic number, it's just a goal. The main point being: 14 days a year is NOT enough! (And do not forget, you still need to be maintaining for some sort of residence there!)

2- Do not stay in any one area more than 12 out of 24 months. - This does not use a calendar year but 2 year look back. Also, 'one area' includes all places within a regional commuting / metro area. (that means surrounding towns also). Switching facilities or companies does not reset the clock! In determining how far is far enough to restart the clock, I usually ask if it is common for people who live in Town A to commute daily to Town B and work? If the answer is 'yes" then those two towns are too close and considered the same tax area.

3- Do not return to any one area a third year in a row. - You then create a pattern, and once you have a pattern, you have a tax home there, because it has become a primary/persistent place of income."

Located at: TravelTax Traveler Page

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