Am I Duplicating Expenses Correctly? Travel Nurse Tax Home Guide 2026

Am I Duplicating Expenses Correctly? Travel Nurse Tax Home Guide 2026

One of the most common questions travel nurses ask is: “Am I duplicating expenses correctly?” Understanding duplicate expenses is crucial for maintaining tax-free stipends and avoiding IRS audits. This guide explains what duplicate expenses are, how they work, and how to ensure you’re maintaining them correctly.

What Are Duplicate Expenses?

Duplicate expenses refer to maintaining expenses at both your tax home (permanent residence) and your assignment location simultaneously. This is a key IRS requirement for qualifying your travel assignment as temporary work, which allows you to receive tax-free stipends.

The IRS Requirement

According to IRS Publication 463, to qualify for tax-free travel reimbursements and stipends, you must:

1. Maintain a tax home (permanent residence)
2. Work away from your tax home on a temporary basis (typically under 1 year)
3. Maintain duplicate expenses - pay for housing/living expenses at both locations

What Counts as Duplicate Expenses?

Expenses at Your Tax Home

• ✅ Rent or mortgage payments
• ✅ Utilities (electric, water, gas, internet)
• ✅ Home insurance
• ✅ Property taxes (if you own)
• ✅ Storage costs (if you’re storing belongings)
• ✅ Home maintenance (repairs, lawn care, etc.)

Expenses at Your Assignment Location

• ✅ Housing costs (rent for furnished apartment, extended stay hotel, etc.)
• ✅ Utilities (if not included in rent)
• ✅ Food and groceries
• ✅ Incidental expenses

The Key Point: You Must Pay at BOTH Locations

Critical requirement: You cannot “turn off” expenses at your tax home while on assignment. If you:

• Sublet your tax home apartment (and don’t maintain expenses)
• Cancel utilities at home
• Stop paying rent/mortgage

Then you may not qualify for tax-free stipends, and the IRS could consider you an “itinerant worker” with no tax home.

Common Mistakes

❌ Mistake 1: Subletting Your Tax Home

Problem: Subletting your apartment means you’re not paying expenses there. You’re essentially renting it out, which can eliminate your tax home status.

Solution: Keep paying rent/mortgage at your tax home. Don’t sublet while maintaining tax-free stipend status.

❌ Mistake 2: Canceling Utilities

Problem: Canceling utilities (electric, water, internet) at your tax home while on assignment can signal to the IRS that you’re no longer maintaining a permanent residence.

Solution: Keep utilities active at your tax home. Some expenses must remain ongoing.

❌ Mistake 3: Using Family Member’s Address Without Expenses

Problem: Simply using a parent’s or family member’s address isn’t sufficient. You must be paying expenses there.

Solution: Maintain your own permanent residence with actual expenses. Family addresses rarely qualify unless you’re genuinely paying costs there.

❌ Mistake 4: Not Keeping Records

Problem: If audited, the IRS will request proof of duplicate expenses. Without documentation, you can’t prove compliance.

Solution: Keep all receipts, rent payments, utility bills, and bank statements showing expenses at both locations.

How to Document Duplicate Expenses

Create an Expense Log

Track expenses at both locations:

Tax Home Expenses:

• Rent/mortgage: $[amount]/month
• Utilities: $[amount]/month
• Insurance: $[amount]/month
• Total: $[amount]/month

Assignment Location Expenses:

• Housing: $[amount]/month
• Utilities: $[amount]/month
• Total: $[amount]/month

Keep Documentation

Save receipts and records for:

• Rent payments (both locations)
• Utility bills
• Bank statements
• Lease agreements
• Travel receipts (to return home)

Real-World Example

Sarah’s Situation:

• Tax Home: Dallas, TX - Pays $1,200/month rent + $150/month utilities
• Assignment: San Francisco, CA - Pays $3,500/month for furnished apartment

Is Sarah duplicating expenses correctly?

✅ Yes! Sarah is paying rent and utilities at her tax home ($1,350/month) AND paying housing at her assignment location ($3,500/month). She maintains expenses at both locations, so she qualifies for tax-free stipends.

What If You Can’t Afford Duplicate Expenses?

If maintaining duplicate expenses is financially difficult:

1. Negotiate higher stipends - Your housing stipend should ideally cover assignment housing costs
2. Choose affordable assignment housing - Extended stay hotels or shared housing may be cheaper
3. Consider assignments closer to home - May reduce assignment housing costs
4. Consult a tax professional - They can help evaluate your specific situation

Important: If you truly cannot maintain duplicate expenses, your stipends may be taxable. Consult a tax professional before making this decision.

The “50-Mile Rule” Myth

There is NO official “50-mile rule” in the IRS tax code. This is a common misconception. The IRS doesn’t have a specific distance requirement. What matters is:

• You maintain a tax home
• Your assignment is temporary (typically under 1 year)
• You maintain duplicate expenses
• You return to your tax home regularly

Use Our Tax Home Risk Assessment Tool

Unsure if you’re maintaining duplicate expenses correctly? Use our free Tax Home Risk Assessment Tool to evaluate your compliance risk. The tool asks about your expenses, tax home maintenance, and assignment patterns to give you a personalized risk score.

When to Consult a Tax Professional

Consider consulting a tax professional specializing in travel nurse taxes if:

• You’re unsure about your tax home status
• You’ve been traveling for over 1-2 years
• You’ve extended multiple contracts in the same location
• You’re not maintaining expenses at a permanent residence
• You’ve received an IRS notice or audit

Key Takeaways

1. ✅ Duplicate expenses are required - You must pay expenses at both your tax home AND assignment location
2. ✅ Document everything - Keep receipts, bills, and bank statements for both locations
3. ✅ Don’t sublet or cancel utilities - You must maintain ongoing expenses at your tax home
4. ✅ Keep it temporary - Assignments typically should be under 1 year
5. ✅ Return regularly - Visit your tax home periodically to maintain residence status

Conclusion

Maintaining duplicate expenses is a critical requirement for tax-free stipends. By paying expenses at both your tax home and assignment location, keeping detailed records, and returning to your tax home regularly, you can maintain compliance and avoid IRS issues.

Use our tools to ensure compliance:

• Tax Home Risk Assessment - Evaluate your compliance risk
• Pay Calculator - Calculate your net pay with tax considerations
• Contract Comparison Tool - Compare contracts with tax implications

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Disclaimer: This article is for educational purposes only and is not tax advice. Tax laws are complex and vary by individual circumstances. Always consult with a qualified tax professional for personalized advice. For official IRS guidance, see IRS Publication 463.

Related Resources:

• Tax Home Risk Assessment Tool
• Travel Nurse Tax Guide 2026
• Understanding Tax-Free Stipends
• IRS Publication 463 - Official IRS guidance