Travel Nurse Employment: Tax Advantages of Per Diem Deductions

When you are a travel nurse, then you need to have atravel nurse meeting the requirements outlined by the
pretty good understanding of per diem rates and howIRS can claim deductions for certain travel expenses
they might lower your taxes. Many travel nursesor receive tax free reimbursements and tax free per
believe that per diem is only a tax benefit that staffingdiem allowance payments. These tax benefits are one
agencies offer and yet, surprisingly, others do not. Thisof the great perks of being a travel nurse.
misunderstanding about what per diem is and how itUnfortunately, one of the most common tax mistakes
may affect your taxes is an important financial issuethat a travel nurse makes is not being educated or
that you need to understand. How you report your pereven aware of the tax advantages to per diem
diem earnings could mean the difference in thousandsdeductions. Now that you are are aware that savvy
of dollars in tax savings.travel nurses are eligible for per diem deductions for
Whether you are looking to maximize deductions,every day that they are on temporary assignment
reduce taxes, or increase your returns, travel nursesaway from their tax home, pass on the work to your
should take the time to learn as much as possibleco-workers, or email them this article so that they can
about the IRS per diem tax rules. Certainly, one way tobookmark this overview and take advantage of these
learn is to go to the IRS home page and downloadtax benefits themselves.
publication 1542 and read the rules so that you have aIt is important to be aware that some companies don't
working idea of what to expect by tax time next year.pay per diem allowance, pay too little per diem, or only
Another great resource, especially, now a days is topay per diem as a function of hourly pay. You can
do your taxes yourself, if you have a personallearn what these scenarios mean for you personal tax
computer or laptop. Turbo Tax is a great softwaresituation by consulting with a tax advisor or
program. Not only is it inexpensive and tax deductibleresearching the IRS rules. You deserve to to get
itself, but it is very easy to work when you use theevery dollar of per diem related deductions that you
step-by-step wizard. You can walk through your entireare entitled to, and we hope that this article has help
tax return, and file it electronically. You can get youryou.
refund deposited directly into your checking account inNote: while much care has been taken to make this
a matter of days.article accurate, tax rules do change. Please be sure
A couple of travel expenses to have a heads upthat you are up-to-date on the latest IRS rules. This
about include:article is meant for informational purposes only and is
- The travel nurse has a permanent tax homenot meant to replace the advice of a skilled tax
- The travel nurse takes a temporary (less than 12advisor.
months) assignment awayfrom their tax home Any