December 27, 2023

8059 Views

It’s Time to Think About Tax Returns

Posted on December 27, 2023December 18, 2023 by Joseph Smith @ Travel Tax

Once Christmas and New Year’s holidays have passed and you have moved on from wondering where 2023 went, one of the first rituals you will embark on is your tax returns. For many travel healthcare professionals, this can be a headache gathering the info, making sure you have all the documents, and then getting the return done. If you have many oars in the water, there is work to do.

Gathering your documents – the most common

W2s and 1099NEC

These are the basic forms that report income as employees and contractors. Travelers can frequently forget all the agencies and employers they worked with (remember the last two weeks of December 2022 that you were paid for in January 2023?) If you worked in more than one state, you want to make sure that your W2s show every state unless the one did not have an income tax or was a reciprocity state to your home state. This is where many travelers realize that they forgot one basic task during the year- checking the first pay stub of a new contract. If you worked in, say, Oregon and there is no Oregon withholding, then something is wrong. Always check the first pay stub of each contract. W2s and 1099NECs are supposed to be sent by the end of January. You should receive a W2 or 1099NEC from each agency you worked with in the 2023 tax year.

1099 INT, 1099DIV, 1099B

If you have a bank account with interest, own stocks with dividends, or buy/sell stocks, then it will be recorded on these forms. Many brokerages will issue a 1099 Composite to include all of these in one report. These 1099s come LATER than the W2s and 1099 and are not required until February 15. There are often corrections to these documents or delays that can mess up your tax return. Also, remember that just because you didn’t take money out of your brokerage account doesn’t mean you are not taxed. If the interest, dividends, or sales of stocks generated cash flow, you are taxed on these distributions. Also, if you have a 1099 Composite, don’t ignore the gobbledygook after the first few pages. There are possibly reportable transactions or deductible interest buried in those pages. Your tax professional will know what to look for.

1099R, 5498

Retirement statements. The number one thing travelers forget to give their tax preparer are 1099R or 5498s for retirement transactions. Did you contribute to a retirement account that was NOT managed by your employer? Then, likely you have some report for that that shows how much and to what type of account it was for. Did you withdraw, rollover, characterize, or convert funds to a different type of account? You will probably have a 1099R for that. The amount contributed to an employer’s plan will show on your W2s, so you don’t need anything for that.

1099G

This is an odd form used to report state refunds paid to you during the year and unemployment compensation. It’s used to report payments from the Federal or State governments. Unemployment is taxable at the Federal level, but many states exempt it.

W2G

Gamble? Did you win? It gets reported here and, in some cases, on a regular 1099MISC. Gambling winnings are considered income, and there are at least 2 methods of determining how much is taxable, but most people who gamble do it a LOT. We have seen clients with over 50 W2Gs, and making sure you have all of them can be a challenge.

K1s

If you are involved in any partnership, a shareholder in an S-Corp, or a beneficiary of a trust /estate, you are bound to receive one of these. If you had a relative die recently and received an inheritance, there is a very strong chance that you will get one. These can take FOREVER, especially when dealing with the competing interests of relatives when they bicker over a deceased person’s estate. Some investments are actually partnerships where you own a certain percentage of the investments.

1099K

This is the form that everyone was scared of – the new rules required every 3^rd party payment system like PayPal, Venmo, etc., to issue 1099Ks to each person who received more than $600 during the year. The IRS has delayed this till the 2024 tax year, so that is a problem for next year. When implemented this can affect everyone sharing the cost of a meal or reimbursing a friend.

1099MISC

This form reports many miscellaneous items, but the most common for travelers are rents (for renting your home out) and Royalties. If you use a property manager for your rental, they will often report your gross rent on a 1099MISC. Sometimes, gambling winnings show up on a 1099MISC as well.

Tax Law Changes, Opportunities and Bummers

IRS Personal Account

All taxpayers should open an Online Account with the IRS. You can see all of your statements and items reported on your behalf, make payments, and communicate with the IRS. It is simple to sign up. https://www.irs.gov/payments/your-online-account

Home Energy Credits

Credits for energy improvements to your home were greatly expanded for the 2023 tax year. There are no longer any lifetime limits like there were before. Only annual limits. That new HVAC system, windows, insulation, or doors are worth a lot more credit now.

EV Credit Transfers

If you purchase an EV, you can request that the credit offset the purchase price of the vehicle. Since there are income limitations, you can now use the income from the year of the tax return or the previous year to qualify. Transferring credit can be tricky if you exceed the income limits during the year unexpectedly. If the previous year’s income does not allow you to qualify, you will have to pay the credit back on the tax return. Credit transfers can only be done through dealers, not private sales.

Beneficial ownership reporting

Do you own or are a part owner of an LLC, Corporation, or any entity formed in a state? You are now required to disclose all owners of 25% or more annually, 30 days after any changes, and 90 days after forming a new one. The penalty for not filing is steep and can be as high as 10K or imprisonment if the lack of disclosure is willful. The report does not go to the IRS but to FinCEN (Financial Crimes Enforcement Network). Information can be found here https://www.fincen.gov/boi-faqs

By Joseph Smith @ Travel Tax

April 6, 2022

38085 Views

Talking Travel Nurse Taxes: Should I (ever) File Tax Exempt?

Posted on April 6, 2022September 28, 2023 by Joseph Smith @ Travel Tax

There are patients that we dread to care for. During report, we tactfully offer to take more patients, a more critical patient, or even offer to float to another area to avoid being assigned to the ONE patient no one wants.

In the tax world, one conversation tax professionals dread is with a taxpayer who filed exempt and owes a bundle of taxes.

You do everything you can to avoid the obvious, and you hope the taxpayer is already aware of their situation. If they confess, it’s your chance to exhale.

What is “filing exempt?”

“Filing Exempt” is a term that describes any change in withholding that claims extra exemptions or declares outright exemption for tax withholding. The form that is used for this is called the W4. Most states follow this Federal form, but some have their own that works similarly.

Travel nurses file exempt for various reasons.

The most common is to bolster take-home pay during a financial hardship. Those periods in life are understandable, but there are other reasons travel nurses file exempt that do not benefit them in the long haul, especially when there is an amount owed with the annual tax return.

1) Extended period of overtime

Travel nurses often confuse tax withholding with actual tax. The statement that someone is “taxed more” for working overtime is misleading. While more taxes may be withheld during an extended period of overtime, the extra withholding is triggered by formulas that anticipate taxes based on a prospective estimate of total annual income. If one makes $1000 a month, the withholding formula will base withholding on $12,000 a year. If they make $2,000 a month, the withholding will be based on $24,000 of income for the year. A dip in earnings or a part-time second job can trigger less than optimal withholding for that source of income when compared to the total income the travel nurse earns for the year.

2) Bonuses

The same principle discussed in #1 applies here. However, the IRS stipulates that a 25% flat amount be withheld for these payments. The employer can use the W4 claim as an alternative. The 25% is not a tax but simply a mandated default withholding rate to ensure adequate taxes are withheld.

Take Away’s

If you anticipate an extra boost of income or a large amount of deductions, consider the following before filing exempt from tax withholding:

Only adjust your withholding slightly by 1-3 exemptions. You may have some excess withholding, but you are still earning income that needs tax payments, and it prevents the worst-case scenario of the next takeaway.
Make sure that if you file exempt or significantly increase your exemptions, to change the withholding back quickly. Many travel nurses forget to do this. A one-month delay can cause the travel nurse to owe at the end of the year.
Just ignore it and leave the withholding where it is. You will get a larger refund at the end of the year, but it is one less hassle to deal with.

We hope you found this article on whether a travel nurse should file exempt or not helpful. We hope it answers any questions you may have.

Interested in a travel nursing job? Our job board is a great place to search for assignments, and if housing is an issue, our housing page can help. It’s time to make a difference!

Would you like to learn more?

Check out the TOP 10 Questions for Travel Nurses on Taxes.

By Joseph Smith @ Travel Tax

March 17, 2021

23199 Views

Talking Taxes: Your Mailing Address and State Revenue Agencies

Posted on March 17, 2021September 28, 2023 by Joseph Smith @ Travel Tax

As a traveler mobilizes from assignment to assignment, they will occasionally have mail sent directly to one of the temporary travel nurse mailing addresses instead of having it forwarded from the main mailing address.

While this may be convenient, it is a recipe for trouble on the tax end. In our practice, we have seen the following scenarios that travelers should be aware of.

Retirement distributions are received during assignments.

Most financial institutions are required to designate the state in which any distributed retirement funds are sent. If you withdraw from your retirement funds or do a ROTH conversion, be sure to confirm that the financial institution is reporting the distribution to your home state.

When filing your annual tax return, it is a strong possibility that the 1099R that reports the distribution will be coded for the state of receipt and not your home state. Since most states take the position that the 1099 or W2 is correct unless otherwise documented or corrected, a traveler could be liable for taxes to that state on income they never earned there.

Residency Audits

State revenue audit departments often make the IRS look like a harmless fuzz ball. They will aggressively pursue the smallest shred of evidence that would suggest that a taxpayer is a resident of that state. Many of them have departments called “Discovery Units” or some title that makes them sound like military special forces.

Examples

The following are just a few examples of traveler’s cases that we have helped resolve.

W2s are sent to parents’ addresses during a traveler’s move to another state. The parent’s home state assessed tax on total income for the year based on W2 address.
Utilizing an out-of-state hospital for delivery. A resident of one state with family in another state chose to close out her pregnancy near her family. The state assessed the mother for full-year taxes, asserting that she was a resident since she used the hospital facilities.
The traveler took a travel assignment in a state bordering their grandfather’s home state to care for him during off days during terminal illness. The traveler had their grandparent’s address listed on financial mailings for convenience. Grandfather’s state assessed travelers for taxes as if they were a resident.
Using professional practice licenses as evidence of residency. Almost all states with an income tax now cross reference professional practice licenses and their tax return database. If no tax return is found during a year in which the license is active, letters are randomly generated to the last known address requesting an explanation or a return.
Adjacent year return. Often, filing in a state for one year will trigger an expectation of a return the subsequent year regardless of whether any income was earned.
Incorrect filing. A common mistake of chain tax companies and DIY travelers is claiming part-year residency in every state worked. This becomes a license issue. Compact state licenses require that a resident return be filed in the home state OR, if the home state does not have an income tax, that no other state has a resident filing.

What happened with these cases? Years later, travelers either discovered tax liens during loan applications or received notices that were sent to the wrong address. One locum client of ours had a six-year-old, $56,000 lien filed by the state of California. The traveler discovered the lien when applying for a mortgage.

Would you like to learn more?

Check out the TOP 10 Questions for Travel Nurses on Taxes.

By The Gypsy Nurse

February 7, 2021

46528 Views

Understanding Travel Nurse Bill Rates

Posted on February 7, 2021May 14, 2024 by The Gypsy Nurse

All of your compensation and the company’s expenses/profits will come from one thing; The Bill Rate. A bill rate is the amount contracted for the hospital to pay the agency based on hours worked for each nurse contracted. You, as the travel nurse, may never know your bill rate between the agency and the hospital. You need to know how it’s broken down and why you only have a certain amount to negotiate with.

Bill Rate Broken Down

Please note: The actual numbers in this calculation are strictly for example purposes. Bill rates fluctuate continuously, so this in no way is a statement on what a current bill rate might be.

Bill Rate: $65/hr
Nurse pay rate: $35/hr (~53%)
Social Security and unemployment,
workers’ compensation, liability,
malpractice, recruitment and
other administrative costs (including profit or GPM): $30

Think of it as a huge pie

The best way that I can think to break down the bill rate is by thinking of the Bill Rate as a huge pie. Each separate component is a slice of the pie. Each individual contract has its own pie….some are large, and some are small. This is dependent on many factors, including location, hospital size, company relationship with the hospital, level of hospital need, etc. Ultimately, the size of the pie is beyond your negotiation. There is a separate contract between the hospitals and the nursing agencies that defines this.

The travel company gets their slice

The travel company is going to take a percentage of the pie right off the top. It’s important to remember that your recruiter does not have a say in this. This is generally corporate-mandated and covers such things as overhead for the company, employee salary/benefits, and a defined profit margin. The amount of the pie that the company will lock out of negotiations varies from company to company.

The standard GPM (gross profit margin) is 20-22%. Some agencies, the larger agencies, maintain a 25% GPM for most contracts. Smaller companies tend to maintain a lower GPM, as low as 15%.

– Crystal Lovato, Placement Specialist at Freedom Healthcare Staffing

The last part of the pie belongs to the traveler (you).

Several items will come out of your part of the pie. These may include:

– Travel reimbursements
– Licensing reimbursements
– Any benefits offered, i.e., 401K, health insurance, etc
– Housing

And last but not least…..Salary.

How these items come together in your contract is discussed in Preliminary Contract Negotiations. Check out the TOP 10 Questions for Travel Nurses on Taxes

If you are a new travel nurse or looking into becoming a travel nurse:

START HERE

Travel Nurse Guide: Step-by-Step (now offered in a PDF Downloadable version!)

By Joseph Smith @ Travel Tax

December 16, 2019

15164 Views

Another Tax Year Upon Us 2020: Tax Tips for Travel Nurses

Posted on December 16, 2019January 16, 2023 by Joseph Smith @ Travel Tax

As I write this piece, it is a few weeks from Christmas and I’m thinking about the Holidays. Lurking on the other side of the festivities is another tax season. This is the life a tax professional. Not much different from the mass exodus of patients during the holidays only to face the caravan of returning patients afterwards.

Are there new rules to consider?

This is the second year after tax reform and surprisingly, refreshingly, and incredibly, there are no big surprises barring any efforts of congress to pass something last minute which is unlikely to happen.

There are a few things to watch as we go into a new year.

End of year planning:

If you are a serious retirement saver, plan your employer-based retirement contributions to reach your goals before the end of the year OR set aside the amount you want to contribute to your individual IRA by 4/15/20
Set aside enough to contribute to any 529 plans you participate in to reach your annual target
If you have significant itemized deductions, consider making that end of year donation to take advantage of any addition tax savings
If you know you owe the IRS, state or municipality, make your payment before 1/15/20 to help reduce or avoid any underpayment penalties
Make sure all your employers and financial institutions have your current mailing or electronic address. You do not want to file your return only to discover that you missed an important document

New Items

New W4s – W4s are the forms that you complete when you start a job or wish to change the amount of tax payments that are withheld from your paycheck. For many years, It has asked for your marital status and the number allowances you are claiming. These forms have changed and the next one you fill out will look very different – like one of those new documents you have to learn with you start a new assignment, only this is the IRS, mind you. The new forms will be hard to understand as they will ask a LOT of questions about all your jobs and deductions. The shortcut? Just fill out your filing status and check the like box just above the midline that says, “multiple jobs”. Ignore the rest
Smaller refunds – The goal of the new W4s is to reduce the amount of refunds and amounts due. Basically, to make filing a tax return something closer to an end of the year statement than a bonus check.
More aggressive states – States have taken audits and reviews into their own hands and not waiting for the IRS to start the process. We fielded more state inquiries than ever during the 2019 filing season.
Politicians pontificating about taxes. An election year would not be the same without wide eyed promises to put more money in your pocket or socking it to the rich. Look for more practical proposals instead of the impossible.

*Edit

Last minute tax bills buried in appropriations bill

In my last article I had waited till the last-minute hoping Congress would not pull another end of the year change to the tax law, but ……… despite my confidence, it happened after I sent the article

Changes to note

1) Mortgage Insurance Premiums treated as interest. This provision ended with the 2017 tax year but has been renewed RETROACTIVE to the 2018 tax year through the 2020 tax year. Lots of amended returns!
2) Discharge of Principal Residence Indebtedness: This ended in 2017 and is now retroactive and extended through 2020 as well
3) Medical expense itemized deduction: Has now reverted to the 7.5% threshold of AGI through 2020. This is also retroactive
4) Tuition and Fees Deduction: This ended in 2017 as well but is back until 2020. When you cannot use the American Opportunity Tax Credit or the Lifetime Learning Credit, you can possibly use this deduction. It allows up to 4K of tuition and fees to be deducted. The income limitation is higher than the previous credits mentioned.
These items were not originally deductible on the 2018 tax return and now are with amended returns. Some taxpayers can amend now, BUT each state will now have to decided whether to follow these changes. So, it may be best to wait a few months before amending to see if your home state is agreeable.

Other items to note

1) You can now withdraw 5K from your IRA penalty free for the birth or adoption of a child
2) Starting in 2020, If you inherit an IRA, you now must withdraw all the amounts and pay the taxes within 10 years vs the life expectancy of the beneficiary.
3) The age limit for IRA contributions has been repealed
4) You can now use 10K of 529 Plan balances to pay off student loans and pay for the cost of apprentice programs. The student loan provision is a per child, per lifetime. In other words, the student can only use 10K in their entire lifetime and it only applies to loan principal, not interest
5) You are no longer required to withdraw from IRAs will age 72

We hope you have a great 2020!

Do you have questions regarding your tax home? Travel Nursing: What is a Tax Home? is a great resource for travel nurses.

By Kayla Reynolds

October 20, 2019

49681 Views

8 Things I Wish I Knew Before I Became a Travel Nurse

Posted on October 20, 2019May 20, 2021 by Kayla Reynolds

Guest Post by The Gypsy Nurse Ambassador Kayla:

8 Things I Wish I Knew Before I Became a Travel Nurse

One of the great things about travel nursing is the variety of experiences that it provides for those that choose this path. As a ICU travel nurse for the past 5+ years, I’ve learned a lot through trial and error. If you have interest in becoming a “Gypsy”, or are new to travel nursing, here are 8 things I wish I know before I became a travel nurse that I hope helps you in your journey.

1.) Have A Safety Net!

Traveling is a risky business and it may sound like a no-brainer but do not start traveling without some kind of savings. You have to be ready for the unexpected like when you car breaks down in the middle of nowhere or contract gets cancelled. You may have to live without working for a few weeks. SO, be prepared for it.

2.) Trust your gut!

I had a pretty lucrative contract in CA but I sold my soul for it. It was a pretty rough assignment using the most outdated charting system and floated from one end of that hospital to other. Yes I got paid well but I certainly worked for it. My gut was right when it said “this is too good to be true”. If you feel after an interview uneasy about anything ask more questions and don’t be afraid to pass on it.

3.) Read your contract!

You have to go over your contract with a fine toothed comb. Make sure you understand everything in your contract and that it includes all the things you have asked for. Some of the top things I make sure is in my contract are pay rates for the first 36 hours, hours from 36-40, and hours from 40+ (the exception is California), requested days off, cancellation policy or guaranteed hours, cancelled contract policy, travel and any other reimbursements, per diems, shift times, specific unit I will be working, and floating policy. Also make sure you understand things like non compete clauses in your contract or any other terms you are agreeing to.

4.) Educate yourself on taxes regarding travel nursing and what is meant by maintaining a tax home.

I spent hours researching articles related to travel nursing and taxes before becoming a travel nurse. This can be very complicated.

5.) Before starting to apply to companies have all your documents ready.

This will include a resume, certifications, copy of your diploma, vaccination records, copy of your identification card, nursing licenses, and references. Also, every company will request that you do a skills checklist before being submitted to hospitals.

6.) Learn from the experienced travel nurses.

All of us have made mistakes going in but if you know before you start what to look out for this may save you a lot of heartache.

7.) Travel nursing can be uncomfortable at times.

If you were to meet me now you would probably never guess I was not the most social and certainly not as confident as I am today. That I owe to travel nursing pushing me out of my comfort zone. I have learned to go at it on my own and not wait for anyone to tag along with me to have an adventure. I like to call it dating myself or solo explorations.

8.) Be ready for whatever is thrown your way.

Finally, your reaction to situations will make or break your travel nursing career. You can choose to throw in the towel or you can handle it. Travel nursing will test your limits sometimes but you have the power to run it or let it run you.

I hope you found these tips to be helpful. One of the keys to being a successful Gypsy nurse is the willingness to help your help your colleagues. Feel free to let me know if they do by leaving a comment here.

Want to share your own travel nursing tips with fellow Gypsies? Leave a comment here or (for the budding travel nursing writers out there!) email content@thegypsynurse.com with your ideas and we may be able to turn it in to an article and share it with the thousands of Gypsies in our network!

By The Gypsy Nurse

June 23, 2019

35526 Views

Ask A Travel Nurse: Can I Rent Out My Tax Home?

Posted on June 23, 2019November 10, 2023 by The Gypsy Nurse

Can I rent out my travel nurse tax home and still receive a housing stipend?

The short answer is YES. However, there are additional considerations you should be aware of if you are attempting to use the tax home as a qualifier for ‘duplicated expenses’ for tax-free stipends. If you are receiving tax-free housing stipends, you need to have a residence available for personal use in the area of your tax home. Once you have rented out your house, it is no longer your residence but a business property.

ADDITIONAL TRAVEL NURSE TAX INFORMATION

As a Travel Nurse, Can I rent out my tax home and still receive housing stipend?

Answer:

Travel nurse tax home: Understanding the tax home can be very daunting. There are several articles on this topic, and it’s always recommended if you have questions, contact the expert: TravelTax

According to TravelTax:

Generally, you need to have a residence available for personal use in the area of your tax home. Once you have rented out your house, it is no longer your residence but a business property. However, here are a few options if you get the urge to become a landlord.

You rent it out and lease other accommodations somewhere in the same metropolitan area for yourself. This essentially turns your ex-residence into a business venture, regardless of profit or loss.
You rent it out but retain a portion for personal use, NOT just storage. (This could be done in the case of an in-law apt or renting to friends/family who you know well enough to stay at the house in between assignments.)
You rent it out as a vacation rental. This is great for those who live in tourist areas. You are allowed to rent it out completely for part of the year while you go off on assignment. Because the lease is for less than a year, and you are occupying it the rest of the time, it qualifies, and you can still keep your reimbursements tax-free.

See more at: TravelTax.com and check out the TOP 10 Questions for Travel Nurses on Taxes

Finished the travel nursing guide and are ready to look for an assignment?

Check out our travel nurse jobs!

By Joseph Smith @ Travel Tax

May 18, 2019

50178 Views

Travel Nurse Taxes & The 50-Mile Rule.

Posted on May 18, 2019May 14, 2024 by Joseph Smith @ Travel Tax

A traveler will eventually encounter the “50-Mile Rule” during conversations with recruiters or fellow travelers.

The rule is often discussed as an accepted law of traveling and defended with evangelistic zeal on social networking sites. No matter how many times it is refuted, the rule emerges in another conversation like a marathon game of Whac-A-Mole[I].

Let’s start with the facts:

THERE IS NO SUCH THING AS A 50-MILE RULE!

Ahhh that feels better… Now that we have released our frustrations let’s explain the origins of this myth.

The 50 Mile Myth and the 50 Mile Reality

Myth: As the myth goes, if you live more than 50 miles away from the assignment, you are entitled to, eligible for, or guaranteed a special government subsidy for lodging that is completely free of taxes. What a deal! If it sounds too good to be true, it probably is.

Reality: Tax-free reimbursements for lodging are only allowed when one is traveling away from their tax home (not their permanent residence)[ii]. The distance traveled must require the employee to get rest and sleep at the assignment location to fulfill their duties at the facility. There is no mileage benchmark for this. It is a simple overnight stay test.

Apply some logic here: Why should one receive tax-free lodging allowances without incurring lodging expenses?

Agency Use of the ’50 mile Rule.’

Unfortunately, a lot of agencies have this 50-mile verbiage in their contracts, tax home statements, and marketing. Some recruiters are taught this as an IRS rule and insist that travelers use an alternate address on their tax home forms to qualify for the provisions. It’s no wonder that there are more than 20 agencies being audited, and for some of them, the 50-mile myth is part of the problem.

50-mile rules are good internal screening tools for the agency to test the validity of the information that a traveler provides. However, it is not the litmus test to determine eligibility for tax-free lodging allowances. Even if a traveler prefers to drive 80 miles each way to work and back each shift, they do not qualify for tax-free lodging allowances. Why? There are no lodging expenses to reimburse.

Some facilities that use travelers or per diem staff incorporate a 50-mile limit for the professionals that the agencies submit for positions or shifts.

This is an attempt to keep current employees from jumping ship and working with the agency for premium pay. Some facilities have a longer distance requirement of 75 or even 100 miles due to the geographical nuances of the area that they serve. This facility rule is often confused with the mythological 50-mile IRS rule by recruiters and travelers alike.

There are only two places where there is a 50-mile rule in the tax laws.

First, §162(h) of the Internal Revenue Code allows state legislators to receive a per diem when traveling more than 50 miles for legislative business. They are not required to incur lodging expenses for the payment.

Furthermore, the second 50-mile rule applies to moving expense deductions. A taxpayer can deduct moving expenses when they permanently move their residence 50 mile plus their old commute to be closer to a new permanent job. Moving expenses do not apply to a regular traveler. A traveler is never “moving” – they are temporarily working “away from home.”

We hope this clarifies the 50-mile rule for you. We realize that it may be another futile attempt at resisting assimilation by the industry Cybermen. Maybe this installment of Traveler Dr. Who will prevail for good[iii].

[i] Our apologies to those of you that are too young to remember this game J
[ii] A Permanent Residence and a Tax Residence are different- refer to previous articles for this discussion
[iii] Both the Borg in Star Trek and the Cybermen in Dr. Who warned their prey of assimilation

Would you like to learn more?

Check out the TOP 10 Questions for Travel Nurses on Taxes.

By The Gypsy Nurse

April 13, 2019

21828 Views

Talking Taxes: GSA Rates

Posted on April 13, 2019March 19, 2024 by The Gypsy Nurse

This installment discusses the GSA rates for travel nurses. If you need to find out what the GSA rate is for your assignment city, the government GSA website is the place to go.

What is GSA?

The GSA rate is the maximum amount allowable tax-free by location for work related lodging, meals, and incidentals. Any amount over the GSA maximum for a location will be considered income and taxed as such.

If you are accepting GSA (tax-free) amounts from your travel nurse agency, it’s important to note that you cannot also receive agency provided housing – this would be considered ‘double dipping’. You are eligible for one or the other, not both.

Should my agency be paying me the full GSA rate for the city I’m working in?

It’s important to remember that rarely will a travel nurse agency actually pay you the full GSA rate for any given contract. GSA Rates are simply a (guideline) maximum tax-free that you can receive for any given location.

What do I do if a company only pays me $35 per day when the GSA rate for a city is $71?

Unfortunately, with the new TAX REFORM, if your agency gives you less than the GSA allowable amount for per diems (meals, lodging, incidentals) you are no longer permitted to deduct the remaining amount.

To Summarize:

Per the tax Reform: travel nurses are no longer allowed to deduct the difference between what’s paid and the full GSA.
GSA is a set rate (by city/state) and anything paid over this amount will be subject to income tax.
Check out the TOP 10 Questions for Travel Nurses on Taxes

Hopefully you now have a better understanding of GSA rates for travel nurses, and how they affect you.

Gathering your documents – the most common

W2s and 1099NEC

1099 INT, 1099DIV, 1099B

1099R, 5498

1099G

W2G

K1s

1099K

1099MISC

Tax Law Changes, Opportunities and Bummers

IRS Personal Account

Home Energy Credits

EV Credit Transfers

Beneficial ownership reporting

Related Posts

Ask A Travel Nurse: Can I Rent Out My Tax Home?

3 Ways to Save Money on Housing

4 Easy Ways Travel Nurses Can Pay Off Mortgages Early

Categories

Hot Jobs

Recent Articles

What is “filing exempt?”

Travel nurses file exempt for various reasons.

1) Extended period of overtime

2) Bonuses

Take Away’s

Would you like to learn more?

Related Posts

Talking Taxes: The Tax Home “Abandonment” Issue

Talking Travel Nurse Taxes- The State Tax Return

Ask A Travel Nurse: Tax Home

Categories

Hot Jobs

Recent Articles

Retirement distributions are received during assignments.

Residency Audits

Examples

Would you like to learn more?

Related Posts

I Use an RV for Travel Nursing– Can I Deduct The Expenses?

Talking Taxes: ACA Tax Credits

It’s Time to Think About Tax Returns

Categories

Hot Jobs

Recent Articles

Bill Rate Broken Down

Think of it as a huge pie

The travel company gets their slice

The last part of the pie belongs to the traveler (you).

If you are a new travel nurse or looking into becoming a travel nurse:

Travel Nurse Guide: Step-by-Step (now offered in a PDF Downloadable version!)

Related Posts

How to Become a Traveling Nurse

Travel Nurse Pay: How Do I Know I’m Getting a ‘Fair’ Offer?

Tips for First Time Travel Nurses

Categories

Hot Jobs

Recent Articles

Are there new rules to consider?

There are a few things to watch as we go into a new year.

End of year planning:

New Items

*Edit

Last minute tax bills buried in appropriations bill

Changes to note

Other items to note

We hope you have a great 2020!

Related Posts

Talking Taxes: What is Tax Advantage?

Keep Cost of Living in Mind as You Travel to New Locations

ACA Tax Implications for Travelers

Categories

Hot Jobs

Recent Articles

1.) Have A Safety Net!

2.) Trust your gut!

3.) Read your contract!

4.) Educate yourself on taxes regarding travel nursing and what is meant by maintaining a tax home.

5.) Before starting to apply to companies have all your documents ready.

6.) Learn from the experienced travel nurses.