Tax season has almost ended for this year, but even if your taxes are done, now is a great time to assess your tax strategy to ensure you don’t make costly mistakes for next year. Before you find yourself in front of your accountant surrounded by paperwork, it’s important to take steps to avoid common travel nurse tax mistakes. Here’s what you can do to prepare for the next travel nurse tax season.
Tax paperwork isn’t fun for most of us—and you undoubtedly want your tax season to go as smoothly as possible! To help yourself along, follow this tax mistake checklist to steer clear of the following:
- Not choosing a tax home. Your “tax home” is the state where you earn the majority of your income—it’s the place you return to in between your travel assignments. Some states don’t require income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming), so if your tax home is in one of these, you may save on your taxes. To find out more, consult your tax professional.
- Staying in one location for too long. If you’ve elected a travel nurse tax home, you’ll need to earn about ¼ of your annual salary from there. Plus, you’ll need to return to it regularly and maintain proof of your residence. While away on travel assignments, you may find yourself getting comfortable in a spot away from your tax home, making friends and wanting to set down roots. But to reap the benefits of a tax home, always remember to come back for at least a portion of the year.
- Failing to fully review your nursing contract. Your travel nurse contract lists key factors about your income, and it’s important to review it carefully. It explains how much you’ll be earning and from what sources, as well as your benefits package, and the percentage of your income that’s untaxed. To be prepared for tax season, work with your recruiter to understand your travel nurse contract.
- Forgetting to track your expenses. Keep records of all your expenses and save receipts during your travel assignments. Expenses such as dining, transportation, fuel and utilities can be claimed as tax exemptions. Bring all your records with you to your annual tax appointment each year.
- Not working with your recruiter. They are an expert in travel nursing placements and can help you understand your taxes and trackable expenses. So if you’re wondering about travel RN tax deductions, what paperwork to save or any other tax-related questions, your recruiter is a valuable resource.
Looking for your next travel placement?
If you’re in search of an assignment in the best cities for travel nurses, check out MedPro Healthcare Staffing. We’ll work with you to find a placement that suits your career goals, plus we’ll help you understand requirements come tax season. And because we want every travel nurse experience to be your best, we offer perks no other staffing agency does. To learn more, call MedPro Healthcare Staffing at 1-800-866-8108 to speak with one of our dedicated recruiters or apply for a travel nursing job below.
Want to read more about travel nurse tax tips? Check out our past blog posts!
- Tax Season! Eight Tips for Filing as a Travel Nurse
- Housing Tax Breaks You May Encounter While on a Travel Assignment
- Traveling Healthcare Tax Tips: Can You Deduct Food and Housing Allowances?