Tax guide

Travel Nurse Tax Home Requirements 2026: Complete IRS Compliance Guide

Maintaining a proper tax home is the foundation of tax-free stipends. This guide explains exactly what the IRS requires, common mistakes to avoid, and how to ensure compliance.

What Is a Tax Home?

Your tax home is your permanent place of residence where you maintain significant, ongoing living expenses. It's not just where you live—it's where you have a legitimate economic connection.

Key Point: Without a proper tax home, all your stipends become taxable income, regardless of GSA rates.

IRS Requirements for a Tax Home

To establish a tax home, you must meet all of these requirements:

1. Permanent Residence with Ongoing Expenses

You must maintain a permanent residence where you:

• ✅ Pay rent or mortgage
• ✅ Pay utilities (electric, water, gas, internet)
• ✅ Maintain belongings (furniture, personal items)
• ✅ Have a mailing address
• ✅ Return to between assignments

2. Duplicate Expenses

You must pay for housing and meals at both your tax home and assignment location simultaneously. This is the "duplicate expenses" requirement.

3. Return to Tax Home Regularly

You must return to your tax home:

• Between assignments (30+ days annually recommended)
• At least once every 12 months
• For significant periods (not just weekends)

4. Work Away Temporarily

Your assignments must be temporary (typically under 1 year). If you work in the same location for more than 1 year, the IRS may consider it your new tax home.

What Does NOT Qualify as a Tax Home

The following do not qualify as a tax home:

• ❌ Parent's house: If you don't pay rent or utilities
• ❌ Storage unit: No ongoing living expenses
• ❌ PO Box: Not a physical residence
• ❌ Friend's couch: No permanent residence
• ❌ Sublet tax home: If you sublet, you're not maintaining duplicate expenses
• ❌ Assignment location: If you work there > 1 year, it becomes your tax home

Common Tax Home Mistakes

1. Not Maintaining Ongoing Expenses

If you stop paying rent/utilities at your tax home, you lose your tax home status. All stipends become taxable.

2. Subletting Your Tax Home

If you sublet your tax home while on assignment, you're not maintaining duplicate expenses. The IRS may disallow your tax-free stipends.

3. Not Returning to Tax Home

If you don't return to your tax home between assignments, the IRS may consider you an "itinerant worker" with no tax home. All stipends become taxable.

4. Working in Same Location > 1 Year

If you extend assignments in the same location beyond 1 year, the IRS may consider it your new tax home, making all future stipends taxable.

5. Poor Record Keeping

If audited, you must prove you maintained a tax home. Without receipts and records, you'll lose the tax-free status.

How to Maintain a Proper Tax Home

1. Keep Ongoing Expenses

• ✅ Pay rent or mortgage every month
• ✅ Pay utilities every month
• ✅ Keep the residence furnished
• ✅ Maintain belongings there

2. Duplicate Expenses

• ✅ Pay for housing at tax home (rent/mortgage)
• ✅ Pay for housing at assignment location
• ✅ Pay utilities at both locations
• ✅ Don't sublet your tax home

3. Return Regularly

• ✅ Return between assignments (30+ days annually)
• ✅ Return at least once every 12 months
• ✅ Spend significant time there (not just weekends)

4. Keep Detailed Records

• ✅ Rent/mortgage receipts
• ✅ Utility bills
• ✅ Housing receipts at assignment location
• ✅ Calendar showing time at tax home
• ✅ Bank statements showing duplicate expenses

The 50-Mile Rule Myth

There is no 50-mile rule for tax homes. This is a common misconception. The IRS doesn't care how far your assignment is from your tax home—only that you maintain a legitimate tax home and duplicate expenses.

You can work 10 miles or 1,000 miles from your tax home—the rules are the same.

Tax Home vs. Itinerant Worker

If you don't maintain a proper tax home, the IRS considers you an "itinerant worker":

• ❌ No tax home = Itinerant worker
• ❌ All stipends become taxable
• ❌ No tax-free income
• ❌ Higher tax liability

Key Point: Maintaining a proper tax home is essential for tax-free stipends.

How to Assess Your Tax Home Risk

Use our Tax Home Risk Assessment to evaluate your compliance risk. The assessment covers:

• ✅ Permanent residence requirements
• ✅ Duplicate expenses
• ✅ Return frequency
• ✅ Record keeping
• ✅ Assignment duration

Resources

• Tax Home Risk Assessment
• Stipend Rules Guide
• Duplicate Expenses Guide
• IRS Publication 463

Final Takeaway

Maintaining a proper tax home is essential for tax-free stipends:

1. Keep ongoing expenses at permanent residence
2. Duplicate expenses (pay for housing at both locations)
3. Return to tax home regularly (30+ days annually)
4. Keep assignments temporary (< 1 year in same location)
5. Maintain detailed records
6. Assess your risk regularly