Question 1

What is a tax home for travel nurses?

Accepted Answer

The IRS defines a tax home as your principal place of business — not necessarily where you live. For travel nurses, this means maintaining regular work ties (PRN shifts, staff position, or other income) in a specific geographic area. A valid tax home is required to receive tax-free housing and meal stipends.

Question 2

How do I qualify for tax-free travel nurse stipends?

Accepted Answer

To qualify for tax-free stipends, you must maintain a valid tax home, work away from that home on temporary assignments (under 12 months each), incur duplicate housing expenses, and keep thorough documentation. The IRS 3-factor test from Revenue Ruling 73-529 requires meeting at least 2 of 3 criteria: paying home expenses, returning home regularly, and maintaining strong ties.

Question 3

What happens if I stay at one travel assignment for over 12 months?

Accepted Answer

Under IRC § 162, if you work in the same location for more than 12 months — or know at the start that the assignment will exceed 1 year — it becomes a regular job location, not temporary. This effectively shifts your tax home to that city, making stipends taxable. The IRS counts cumulative time, so gap-and-return patterns in the same metro area can trigger this rule.

Question 4

What is the IRS 3-factor test for travel nurse tax homes?

Accepted Answer

IRS Revenue Ruling 73-529 outlines three factors for establishing a tax home: (1) You pay significant expenses to maintain your permanent home, (2) You return to your permanent home regularly, and (3) You have not abandoned your home — you maintain strong ties like family, voter registration, driver's license, and bank accounts. You must meet at least 2 of 3 factors.

Question 5

What documents should travel nurses keep for tax home proof?

Accepted Answer

Travel nurses should keep mortgage or rent receipts, utility bills, pay stubs from home-area work, voter registration, state driver's license, bank statements, vehicle registration, assignment contracts, and travel receipts showing return trips home. The IRS recommends keeping records for at least 7 years, and digital storage is acceptable.