Tax season is upon us, and you may still be trying to figure out your taxes after working multiple travel nursing assignments. While we recommend working with a seasoned tax professional who can help you, the following tips can help you get started.
1. File with every state in which you worked. You should receive a W-2 for each state you worked in, unless that state does not withhold state taxes (such as Wyoming, Texas or Washington). If you are missing a W-2 from one of your assignments or have noticed that the information is incorrect, contact RNnetwork’s payroll team at 888-813-5127. W-2s make it easy to calculate the wages you earned and see each state’s income tax.
2. Keep receipts for travel, housing and meal expenses. You may be able to deduct expenses for driving and other travel costs (such as bus and plane tickets and taxi rides), housing costs and even meal and food costs you incurred while on your travel assignments to the extent they are not reimbursed by RNnetwork. If you plan to do this, be sure to keep receipts for all applicable expenses so you can list them accurately.
3. Make sure your tax home information is up to date. As a travel nurse, you need to keep what’s known as a “tax home” in your state of residence to be eligible for tax-free travel benefits. While you’re on assignment elsewhere, be sure you’re not behind on house payments or anything that could compromise the status of your tax home — and change your tax deductions.
4. Remember that you’ll be taxed on all income by your home state. Even though you may have only spent a few weeks in your home state during the year — and may not have even worked in that state — your total income will be taxed based on the state where your tax home is. However, you won’t be taxed on your income twice because your home state allows you to apply credits for the taxes you paid in the states where you worked. Learn more about tax credits in this TravelNursing.com post.
These tips can make the tax filing process a bit easier — and our payroll team is happy to answer your questions as well! Contact a member of the team at 888-813-5127, and check out our tax information page. You can also find more information about travel nursing tax benefits in this post.