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.
Estimate your net pay in minutes
Use the calculator to compare taxable wages vs. stipends and see your true take-home.