Award-winning global customer service.
★★★★★ 5/5
Dimov Tax is rated 5 stars on all major review platforms including Google, Yelp, Facebook, Angie’s List, Better Business Bureau, TaxBuzz, Thumbtack, Upwork, Bark, and much more.

In recent years, the demand for traveling nurses has surged, with these healthcare professionals playing a crucial role in filling staffing gaps across the nation. It is important to understand the unique tax implications that come with this career choice. This article aims to provide a comprehensive overview of everything you need to know about tax considerations for traveling nurses.
Tax Home and Travel Assignments
One of the key concepts for traveling nurses is “permanent home” vs. “tax home.” Your tax home is generally considered to be your main place of business or employment, which might not necessarily be your permanent residence. To qualify for certain tax deductions and benefits, you must maintain a temporary tax home, even if you have a primary home outside of the state where you normally work in.
Stipends and Per Diems
Many traveling nurses receive per diems or stipends as a part of their compensation. The good news is that, under certain conditions, these reimbursements might be tax-free. To qualify, you typically need to meet the following conditions:
Travel Expenses Deductions
As a traveling nurse, you might be eligible to deduct a range of travel-related expenses, such as transportation, lodging, meals (when not reimbursed), and even laundry, provided that you are paid via a 1099 as opposed to a W-2. These deductions are subject to IRS regulations, so it’s important to maintain accurate records and receipts to support your claims.
State Tax Considerations
Traveling nurses often work in different states, which can complicate state income tax filings. States have varying rules for taxing non-resident workers, and you may need to file income tax returns in multiple states. However, many states have reciprocity agreements that can simplify the process.
Double Taxation
In the case where you often work in different states, double taxation is something that you should watch out for. In general, the same income should not be double-taxed as long as it is appropriately reported on your state tax returns. For example, mechanisms such as other state credit can help you avoid such double taxation. If you are being taxed by more than one state on the same income, typically you can claim a credit towards one state for the tax paid to the other.
Contact Us Today
At Dimov Tax, we understand that each travel nurse’s journey is unique. We provide tailored advice to our clients based on their specific circumstances. Our team of experienced professionals who are fluent in travel nurse tax matters is here to provide you with the insights and assistance you need. Feel free to reach out to us below for services such as consultation, multi-state tax filing, strategic tax projection or tax planning.
Call us today at (833) 829-1120, email us at info@dimovtax.com, or fill out the form and we’ll get in touch immediately.
"*" indicates required fields
Dimov Tax is rated 5 stars on all major review platforms including Google, Yelp, Facebook, Angie’s List, Better Business Bureau, TaxBuzz, Thumbtack, Upwork, Bark, and much more.