It’s tax time once again! After holiday festivities end and a brand new year begins, it’s time to grab your paperwork from the following year and contact your tax professional. As a travel nurse, you have certain considerations come tax season that differ from workers with more stationary lines of work. But have no fear—tax season doesn’t have to be a headache. Simply follow these helpful travel nurse tax tips from MedPro Healthcare Staffing.
Do you know all the travel RN tax information to file your annual taxes correctly and on time? You can visit MedPro online for links to important travel nurse tax information. Plus, just follow these eight handy tips:
- Know which states charge income tax. Of the fifty United States, nine don’t require you to pay state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Also, some states allow what’s called a reciprocity agreement, which requires you to pay tax for just one state where you’ve lived. This is helpful if your travel nurse job had you bouncing around the country in 2016.
- Understand IRS tax homes. Your tax home is the state of your permanent residence, and you can save on your taxes if you establish one. The IRS allows travel nurses who establish tax homes to claim tax deductions on nontaxable items, with one stipulation: You must spend part of the tax year working from your permanent residence. If you don’t establish a tax home, you will owe taxes on nontaxable items.
- Track nontaxable items. Travel RNs may be able to deduct certain nontaxable items from their annual tax filing. Travel nurse tax deductions include living expenses such as housing stipends, housing reimbursements and meals; travel expenses such as mileage, parking and gas; licensure fees; and health insurance.
- Keep a notebook of your spending and mileage. Keeping track throughout the year makes it much easier to gather your paperwork for tax season. Make life easier on yourself by keeping a notebook to jot down mileage and spending continuously. You may also wish to keep a folder of receipts.
- Keep copies of your travel nurse contracts. Your travel RN contracts are helpful to show the start and end dates of your assignments. This helps the IRS establish your tax home.
- Rely on your recruiter. Your recruiter is an expert in the travel nurse industry and understands the tax laws you’ll need to follow. Plus, you’ll gain access to valuable tax resources you can use throughout the year.
- Work with a tax professional. A Certified Public Accountant (CPA) working independently or with a tax preparation service can help you file your tax documents in a snap. This way, you can avoid audits and maximize your return.
- Don’t wait until the last minute to file. The deadline for filing your 2016 taxes is April 18, 2017. But do your best to file well in advance of this date. You can avoid the stress of scrambling for a last-minute tax appointment by planning to file as soon as you can in 2017.
MedPro Healthcare Staffing is your top travel nurse source.
Our recruiters will work with you to find the top travel nurse jobs across the United States. We want to be the best travel nurse recruiter in the industry, and focus on offering you the very best travel RN experience! To learn more, call MedPro Healthcare Staffing today at 1-800-866-8108, or apply for a travel nursing job below.