Your tax home is generally your primary place of business or employment. For travel nurses, it’s crucial to establish a tax home to qualify for non-taxable stipends. Without a tax home, stipends may be considered taxable income, increasing your tax liability.

To avoid double taxation, you must file non-resident tax returns in each state you worked in and a resident return in your home state. Many states offer credits for taxes paid to other states, which can offset your home state’s tax liability.

If you’re a 1099 contractor, you can deduct actual expenses or use the per diem rates for meals and incidental expenses. W-2 employees typically cannot deduct these expenses due to tax law changes.

As a 1099 contractor, you can itemize and deduct travel and lodging expenses related to temporary assignments. W-2 employees are generally not eligible for these deductions unless reimbursed by the employer.

Yes, expenses for obtaining or renewing professional licenses are deductible for 1099 contractors. W-2 employees may deduct these only if unreimbursed and if they itemize deductions.

Being paid on a 1099 offers more flexibility and potential deductions but requires self-employment tax payments and quarterly filings. W-2 employment provides tax withholding and benefits but fewer deduction opportunities. The best choice depends on your financial situation and preferences.

If you’re a 1099 contractor, you’re required to make estimated quarterly tax payments to the IRS. Failure to do so can result in penalties. W-2 employees typically have taxes withheld by their employer.

Filing jointly often results in lower tax rates and higher deductions. However, if your spouse has significant deductions or liabilities, filing separately might be beneficial. A tax professional can help determine the best option for your situation.

Keep detailed records of income and expenses for each employer. Consider setting aside a portion of each paycheck for taxes, especially if you’re a 1099 contractor. Utilize available deductions and consult a tax professional to optimize your tax strategy.