The Short Answer
CPA guide to travel nurse tax home requirements, itinerant nurse taxes, and how to protect stipends in 2026.
Read the full breakdown below for detailed analysis, examples, and actionable steps.
CPA guide • 2026 update
Tax Home vs. Itinerant: Why Your Stipends Might Be Taxable
Your travel nurse tax home requirements determine whether stipends stay tax-free or get reclassified as taxable wages. If you’re considered itinerant, every stipend becomes taxable and your net pay can drop quickly. In a high-rate year, the difference can exceed $10,000.
The Rules: IRS Guidelines Made Simple
- Define your tax home. It’s the place you regularly incur living expenses and return between assignments.
- Meet at least two IRS factors. Work near your tax home, duplicate expenses, and return regularly.
- Itinerant status means taxable stipends. No tax home = all stipends taxable.
- Temporary vs. indefinite. Once you exceed 12 months in one area, stipends become taxable.
- GSA limits still apply. Any stipend above GSA per diem caps is taxable.
The Math: Doing It Right vs. Losing Money
Assume a 13-week assignment, $2,400 weekly gross, including $1,000 in stipends, and a 25% tax rate.
| Scenario | Weekly Taxable Wages | Weekly Stipend | Taxable Income | Estimated Weekly Net | 13-Week Net |
|---|---|---|---|---|---|
| Scenario A (Valid Tax Home) | $1,400 | $1,000 | $1,400 | $1,050 | $13,650 |
| Scenario B (Itinerant) | $2,400 | $0 | $2,400 | $1,800 (before reclass) | $23,400 (IRS reclassifies $13,000) |
Reality check: A reclassification can add $3,000+ in tax for a single contract.
A CPA’s 2026 Documentation Checklist
- Lease or mortgage in your tax-home city.
- Utility bills and proof of payment.
- Travel records showing you return home between assignments.
- Short-term housing receipts for the assignment location.
- Contract terms proving the assignment is temporary.
- GSA rate printouts for the assignment location.
FAQ
Do I need receipts for meals?
Housing documentation matters most, but keep receipts for major expenses.
What if I split rent with a spouse?
It still counts if you pay a fair share and document it.
Can I be itinerant for part of the year?
Yes, but stipends during that period are taxable. Consistency is safer.
Final Takeaway
Your travel nurse tax home requirements are the foundation of tax-free stipends. Without them, itinerant nurse taxes apply and your net pay drops. With clear documentation and smart planning, you can stay compliant and protect your take-home pay.
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