Jan 31, 2024
Navigating Tax Season as a Traveling Healthcare Professional
While there are many things to love about being a travel healthcare professional, one thing that may be a little complicated surfaces every year when filing taxes. With tax season approaching, it’s crucial for travel healthcare professionals to be well informed when gathering, filing and maximizing your tax returns. In this blog post, we’ll discuss essential tax tips tailored specifically for healthcare travelers.
Understand Tax Home Requirements
Ensure that you meet the IRS criteria for having a tax home, which involves maintaining a regular place of residence. This is vital for claiming deductions related to travel expenses. Keep thorough records of your expenses at your tax home, such as rent or mortgage payments, utilities, and other costs. You will also want to document what days you’ve spent at your tax home throughout the year. These documents will serve as proof to support your claim that you maintain a residence in a specific location.
Record Housing Expenses
If you stay in temporary housing during your assignments, keep detailed records of short-term leases or hotel expenses. These records can be crucial for claiming per diem deductions and demonstrating your temporary living situation. For more information about housing on assignments, check out our Housing Resources.
Track Mileage and Transportation Costs
Keep a log of your mileage and transportation expenses incurred while traveling between your tax home and your work assignments. These costs can be deductible if you haven’t been reimbursed for them already, so accurate documentation is key.
Save All W-2s and 1099s
Organize and save all your W-2 and 1099 forms from your various assignments. Having a complete record of your earnings is essential for accurately filing your taxes and ensuring you take advantage of all eligible deductions. Along with this, you’ll want to keep copies of every contract you have signed for each assignment.
Maximize Tax Free Stipends
One of the perks of being a travel healthcare professional is receiving tax-free stipends to cover housing, meals, and incidental expenses. To fully benefit from these stipends, it’s important to understand the IRS guidelines. Typically, as long as your expenses meet the criteria for being away from your tax home and are related to your temporary work assignment, you can exclude these stipends from your taxable income. Keep detailed records of your qualifying expenses to make the most of this tax advantage.
Consult with a Tax Professional
Given the complexities of tax laws and regulations, consider consulting with a tax professional who specializes in healthcare, locum tenens or travel nursing. They can provide personalized advice based on your unique situation and help you navigate the intricacies of tax filing.
In the world of travel healthcare, where new assignments bring fresh challenges and experiences, managing taxes is a constant. As you gear up for the approaching tax season, remember these tax tips for healthcare travelers that can help you navigate the complexities of tax filing successfully.
If you’re searching for your next travel healthcare assignment amidst tax season, Aequor is here to help make that process as easy as possible! Create a profile in the Aequor self-service talent portal or browse open positions and get connected with a recruiter today. Safe travels and happy tax season!
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