Travel Nurse Tax Deductions: What You Can (and Can't) Write Off in 2026

Even with tax-free stipends, travel nurses can claim additional deductions to reduce their tax bill. But knowing what you can—and can’t—deduct is crucial. Here’s the complete guide to travel nurse tax deductions in 2026.

Important: Standard vs. Itemized Deductions

Before diving into specific deductions, understand this critical choice:

Standard Deduction (2026)

• Single: $14,600
• Married filing jointly: $29,200
• Head of household: $21,900

Itemized Deductions

Add up all eligible deductions individually

You can only use one method. If your itemized deductions exceed the standard deduction, itemize. Otherwise, take the standard.

For Most Travel Nurses

Due to the high standard deduction, many travel nurses find it difficult to itemize. However:

• You may still be able to claim some deductions
• State taxes may have different rules
• Self-employed/1099 nurses have more deduction opportunities

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W-2 Employee Deductions

If you’re a W-2 employee (most travel nurses), your deduction options are limited since the Tax Cuts and Jobs Act of 2017 eliminated unreimbursed employee expenses.

What W-2 Travel Nurses CAN Deduct

Educator Expenses (If Applicable)

Nurses who also teach may deduct up to $300 for classroom supplies.

Student Loan Interest

Deduct up to $2,500 in student loan interest paid (income limits apply).

Health Insurance Premiums

If you pay for your own health insurance and it’s not through an employer.

Retirement Contributions

• Traditional IRA: Up to $7,000 (2026)
• 401(k): Up to $23,000 (2026)

State and Local Taxes (SALT)

Up to $10,000 in state/local income and property taxes combined.

What W-2 Nurses CANNOT Deduct (Anymore)

Since 2018, W-2 employees cannot deduct:

• ❌ Uniforms and scrubs
• ❌ Professional licenses
• ❌ Continuing education
• ❌ Professional memberships
• ❌ Mileage for work
• ❌ Work-related travel expenses

These were deductible before 2018 but are no longer allowed for W-2 employees.

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1099 / Self-Employed Deductions

If you work as an independent contractor (1099), you have significantly more deduction opportunities.

Business Expenses (Schedule C)

As a 1099 nurse, you can deduct ordinary and necessary business expenses:

Licensing and Certifications

• State nursing license fees
• Compact license fees
• BLS, ACLS, PALS certification costs
• Specialty certification fees
• Renewal fees

Example deduction: $500-1,500/year

Professional Development

• Continuing education courses
• Conference registration fees
• Workshop and seminar costs
• Nursing books and journals
• Online course subscriptions

Example deduction: $200-2,000/year

Professional Memberships

• ANA (American Nurses Association)
• Specialty nursing organizations
• Professional liability insurance

Example deduction: $100-500/year

Work Supplies

• Stethoscope
• Penlight, scissors, hemostats
• Nursing watch
• Scrubs (if required by employer)
• Nursing shoes

Example deduction: $200-800/year

Travel Expenses

If not reimbursed, you can deduct:

• Mileage to/from assignments (67 cents/mile in 2026)
• Flights to assignments
• Rental car for assignment travel
• Tolls and parking for assignment travel
• Lodging during travel to/from assignment

Important: Daily commuting from temporary housing to the hospital is NOT deductible—that’s considered personal commuting.

Home Office

If you have a dedicated home office space:

• Portion of rent/mortgage
• Utilities
• Internet
• Office supplies

Calculation: Square footage of office ÷ total home square footage × total housing costs

Technology and Equipment

• Computer/laptop for work
• Smartphone (work percentage)
• Work-related software
• Printer and supplies

Vehicle Expenses (If Driving to Assignments)

Choose one method:

• Standard mileage: 67 cents/mile (2026)
• Actual expenses: Gas, maintenance, insurance, depreciation (work percentage)

Self-Employment Tax Deduction

If you’re self-employed, you can deduct 50% of your self-employment tax on your return.

Health Insurance (Self-Employed)

Self-employed nurses can deduct 100% of health insurance premiums for themselves and their family.

SEP-IRA or Solo 401(k)

Self-employed individuals can contribute to retirement accounts:

• SEP-IRA: Up to 25% of net earnings (max $69,000 in 2026)
• Solo 401(k): Up to $23,000 employee + 25% employer (max $69,000)

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State Tax Deductions

State tax rules differ from federal. Some states allow deductions that the federal government doesn’t.

States with Additional Deductions

Some states still allow unreimbursed employee expenses. Check your state’s rules, especially in:

• California
• New York
• Pennsylvania
• Minnesota

Working in Multiple States

Travel nurses often work in multiple states and may need to file returns in each. Consider:

• States with income tax vs. no income tax
• Reciprocity agreements between states
• Credits for taxes paid to other states

This gets complex—work with a CPA who handles multi-state returns.

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Documentation Requirements

The IRS expects you to prove your deductions. Keep detailed records.

What to Keep

For Every Expense

• Date of purchase
• Amount paid
• Business purpose
• Receipt or proof of payment

For Travel

• Trip dates
• Destination and purpose
• Miles driven or travel costs
• Lodging receipts

For Mileage

• Date of trip
• Starting and ending location
• Purpose of trip
• Miles driven

How to Keep Records

Digital options:

• Expensify, Everlance, or similar apps
• Spreadsheet with categories
• Scanned receipts in cloud storage
• Credit card statements (highlight work expenses)

Retention period: Keep all records for at least 7 years

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Common Deduction Mistakes

Mistake 1: Deducting Expenses You Were Reimbursed For

If your agency reimbursed an expense (travel, housing, etc.), you can’t also deduct it.

Mistake 2: Deducting Personal Expenses

Only work-related expenses are deductible. Your Netflix subscription, personal phone line, and regular groceries don’t count.

Mistake 3: Deducting Daily Commute

The drive from your temporary housing to the hospital is a personal commute, not deductible—even though you’re traveling.

Mistake 4: Not Keeping Receipts

No documentation = no deduction if audited. Keep everything.

Mistake 5: Guessing at Amounts

Use actual figures, not estimates. Inflating deductions triggers audits.

Mistake 6: Forgetting State Taxes

Some states allow deductions that federal doesn’t. Work with a CPA who knows your state’s rules.

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Deduction Checklist by Category

Licensing & Certifications

• State nursing license fees
• Compact nursing license
• BLS certification
• ACLS certification
• PALS certification
• Specialty certifications (CCRN, CEN, etc.)
• License renewal fees

Education & Professional Development

• CE courses
• Conferences
• Workshops
• Nursing journals
• Professional books
• Online learning subscriptions

Professional Expenses

• Professional organization dues
• Liability/malpractice insurance
• Resume services
• Professional photos

Equipment & Supplies

• Stethoscope
• Medical instruments
• Nursing shoes
• Scrubs (if required, unreimbursed)
• Work bag

Technology

• Laptop (work %)
• Phone (work %)
• Apps and software
• Printer and supplies

Travel (If Not Reimbursed)

• Mileage to assignments
• Flights
• Rental cars
• Tolls and parking

Healthcare

• Health insurance premiums
• HSA contributions
• Medical expenses (above 7.5% of AGI)

Retirement

• Traditional IRA
• 401(k) contributions
• SEP-IRA (self-employed)

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Maximizing Your Tax Savings

Strategy 1: Track Everything

Use an app or spreadsheet to record every work expense as it happens. Don’t try to remember at tax time.

Strategy 2: Use a Dedicated Card

Use a separate credit card for work expenses. Makes tracking easier.

Strategy 3: Know What Counts

Understand the difference between deductible and non-deductible. When in doubt, ask your CPA.

Strategy 4: Contribute to Retirement

Retirement contributions reduce taxable income AND build your future wealth. Maximize if possible.

Strategy 5: Consider State Implications

Work in states with no income tax when possible. Establish your tax home in a no-tax state.

Strategy 6: Work with a Professional

A CPA who specializes in travel nurses knows deductions you might miss and keeps you compliant.

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Sample Deduction Summary

Here’s what a travel nurse’s deductions might look like:

W-2 Travel Nurse

Plus standard deduction of $14,600

1099 Travel Nurse

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The Bottom Line

While the 2017 tax changes limited deductions for W-2 employees, travel nurses can still reduce their tax burden through:

1. Retirement contributions — Reduce taxable income and build wealth
2. Health insurance deductions — If self-employed or buying your own
3. State-specific deductions — Check what your state allows
4. 1099 work deductions — If you do any contract work
5. Strategic planning — Work with a CPA to optimize your situation

The biggest tax advantage for travel nurses remains tax-free stipends through maintaining a tax home—not deductions. Focus on getting that right first.

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Related Resources

• Ultimate Travel Nurse Tax Guide 2026
• What Is a Tax Home for Travel Nurses?
• Tax-Free Stipends Explained
• How to Find a Travel Nurse CPA
• Travel Nurse Pay Calculator — See your after-tax take-home pay