In order to prove you have a tax home, you, as a travel nurse will need to do one of two things:
Prove that the area in which your primary residence is located, is also the same area in which you earned the most income last year, or,
Be able to prove you visited your primary residence at least once in 2021, and are also able to prove that you have financially maintained it.
In order to keep your travel stipends, tax free, you will have claim and be able to prove you have a tax home. If you do not claim a tax home, your travel stipends will then be taxes at the same rate as your base income.
Travel nurses can take the following steps to ensure that they qualify for a tax home in the eyes of the IRS:
- Keep proof of any payments you are making to show that someone else is maintaining your primary residence. For instance, things like receipts for a house sitter, mortgage, rent, utilities, or home maintenance expense.
- Maintain your driver’s license and voter registration in your home state.
- Keep your car registered in your home state.
- Keep a per-diem position, if possible, in your home state.
- Return to your permanent home at least once every 13 months.
- File a Residence Tax Return with your home state.