Travel Nurse Taxes: What to Track Before Year-End

As a travel nurse or allied health professional, you already navigate complex logistics, new cities, new contracts, and new facilities. But there’s one journey that can feel even more confusing: tax season.

November and December are crucial months for getting ahead. Before you close out your contracts or plan your next assignment, take time to organize your pay records, housing stipends, and travel expenses. A little prep now can save hours of stress and potentially hundreds of dollars when April rolls around.

How do I file taxes as a travel clinician?

When you work in multiple states, your tax situation becomes more complex than that of the average staff nurse. You might owe taxes in the state where you worked, the state where you live, or both — depending on tax agreements between those states.

Here’s how it typically breaks down:

• Federal taxes: You’ll always owe federal income tax on your earnings.
• State taxes: You may need to file multiple state returns — one for each state where you earned income.
• Stipends and reimbursements: Housing, meals, and incidental stipends can be non-taxable if you maintain a qualifying tax home and meet certain travel requirements.

If you don’t have a valid tax home, meaning you aren’t maintaining a permanent residence and duplicating expenses while on assignment, those stipends could become taxable income.

Once you’ve determined your tax home and as long as you aren’t spending over 365 days in one location, there are a number of items that can be considered tax-deductible. You can see a full list on the IRS website.

Read, ‘Travel nurse tax tips’ for even more resources ahead of tax season.

What you should be tracking (before December 31)

Your best defense as a travel nurse at tax time is documentation. Here’s what to keep on file before the year wraps up:

1. Your assignment contracts and pay stub.

• Keep digital or printed copies of every contract and pay statement.
• Record where you worked and for how long.

2. Housing and stipend documentation

• Save receipts or bank statements for rent, utilities, and housing payments.
• Keep records of any meals and incidental stipends — and note how much was paid per diem versus taxed wages.

3. Proof of a tax home

• Documentation of a permanent residence (lease, mortgage, or utility bills).
• Evidence that you pay rent or a mortgage on a home while on assignment. elsewhere.
• Records of returning to that home between contracts.

4. Mileage and travel logs

• Record mileage between your tax home and each assignment.
• Note travel days, mileage rate, and expenses like tolls or parking.
• Apps like MileI, QTripLog or even a simple Google Sheet can keep you organized.

5. Professional organization memberships and certification costs

• Many certifications and professional membership dues are tax-deductible (e.g., ANCC, CCRN).
• Save every receipt and renewal confirmation email.

6. Multi-State work summary

• List each state you worked in, the assignment dates, and total income earned.
• This will make filing state taxes (or working with a preparer) far easier.

7. Professional uniform expenses, laundering, and protective gear

• The cost for scrubs may or may not be covered due to specific IRS regulations around use as ‘street clothes.’ It’s worth reviewing this with your tax professional.
• The cost of cleaning and maintaining deductible uniforms (such as sending them to a dry cleaner) is deductible. If the uniforms are required and soiled (i.e., contaminated with biological materials), the added cost of professional laundering may be deductible.
• Required non-clothing protective items like safety goggles, specialized masks, or gloves are generally considered deductible (when they aren’t provided by the employer/facility).

4 common pitfalls to avoid

1. Losing your tax home: If you give up your permanent residence, your stipends can become taxable — even if your agency lists them as non-taxable.
2. Assuming your agency handles everything: Agencies handle withholdings, but you are responsible for filing in every state where you earned income.
3. Not tracking duplicate expenses: To justify tax-free stipends, you must show that you’re paying to maintain your home while incurring housing costs elsewhere.
4. Forgetting about small deductions: Licenses, uniform costs, scrubs, or travel between assignments can add up; don’t miss them.

Make next year easier on yourself

Your future self will thank you if you start fresh in January with a simple system:

• Create a “Travel Taxes 2026” folder (digital or physical).
• Store each pay stub and expense receipt as soon as it hits your inbox.
• Keep a running log of your assignments and travel mileage.
• Schedule a quick year-end review with a tax professional who specializes in travel healthcare.

We believe every clinician deserves transparency, confidence, and peace of mind when it comes to their work and their wallet. 

Tax prep doesn’t have to be a drag

By tracking your contracts, stipends, and expenses before the calendar flips, you’ll set yourself up for less of a headache come April. Stay proactive, stay organized, and remember, your financial well-being is important, and we’re here if you have questions. 

Disclaimer: We aren’t CPAs or by any means experts on this subject. The information provided is general and may not apply to your individual circumstances. Always consult a tax advisor who understands travel healthcare.

Related Reading

• Travel Reimbursements
• 4 Ways Travel Nurses Can Increase Their Salary
• How to Budget Before Your Next Travel Nursing Assignment