What Is a Tax Home for Travel Nurses? Complete 2026 Guide

“Tax home” is the single most important concept in travel nurse taxation. Understanding it is the difference between legally keeping thousands in tax-free income or owing the IRS a massive bill. Here’s everything you need to know.

What Is a Tax Home?

The IRS defines your tax home as your regular place of business or post of duty—essentially, the general area where you work. For most people, this is simple: they work in one place, and that’s their tax home.

For travel nurses, it’s more complicated because you work in different locations. The key question is: Do you have a permanent residence that you maintain while working temporary assignments elsewhere?

If yes, that permanent residence is your tax home. If no, you’re considered an “itinerant worker” without a tax home.

Why Your Tax Home Matters

Your tax home determines whether you can receive tax-free stipends for housing, meals, and incidentals.

With a Valid Tax Home

When you work away from your tax home:

• You’re “duplicating expenses” (paying for housing in two places)
• The IRS allows tax-free reimbursement for these duplicate costs
• This is why travel nurses receive tax-free stipends

Without a Tax Home

If you don’t have a tax home:

• Your work location IS your tax home
• You’re not “away from home”—you ARE home
• Tax-free stipends don’t apply
• All your income should be taxable

The Financial Impact

Let’s see how much this matters:

This is why maintaining a valid tax home is worth the effort and cost.

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The Three IRS Factors

The IRS evaluates your tax home based on three factors. You generally need to satisfy at least two:

Factor 1: You Work in the Area

You perform part of your business or work in the area of your main home.

How travel nurses satisfy this:

• Working PRN shifts at a local hospital
• Picking up per diem work between assignments
• Doing any work in your home area

Evidence:

• Pay stubs from local work
• Hospital credentialing records
• Schedule documentation

Factor 2: You Have Living Expenses There

You have living expenses (rent, mortgage, utilities) at your permanent residence that you’re duplicating when working away.

How travel nurses satisfy this:

• Paying rent or mortgage monthly
• Paying utilities (electric, water, internet)
• Maintaining the property

Evidence:

• Rent payments/lease agreements
• Mortgage statements
• Utility bills in your name
• Bank statements showing regular payments

Factor 3: You Haven’t Abandoned It

You have not abandoned the area as your main home. You use the residence regularly for lodging, have family there, or have historical connections.

How travel nurses satisfy this:

• Returning between assignments
• Keeping belongings there
• Maintaining ties (voter registration, vehicle registration, mail)
• Having family connections

Evidence:

• Records of visits home
• Flight or gas receipts
• Photos with dates
• Driver’s license address

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Valid Tax Home Examples

Example 1: Homeowner

Sarah owns a condo in Austin, Texas.

• Pays $1,800/month mortgage
• Pays utilities (~$200/month)
• Returns for 2-3 weeks between assignments
• Works PRN at local hospital occasionally
• All her furniture and belongings are there

✅ Valid tax home — Satisfies all three factors

Example 2: Renter

Mike rents an apartment in Phoenix, Arizona.

• Pays $1,200/month rent
• Has a roommate who stays while he’s away
• Returns 4-5 times per year for extended weekends
• His car is registered there
• He votes in Arizona

✅ Valid tax home — Satisfies factors 2 and 3

Example 3: Living with Family

Jessica lives with her parents in Ohio when not traveling.

• Pays her parents $600/month for room and board
• Has her childhood bedroom with her belongings
• Returns for holidays and between assignments
• Her mail goes there

✅ Valid tax home — Satisfies factors 2 and 3 (though riskier than independent housing)

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Invalid Tax Home Examples

Example 1: No Permanent Residence

Tom sold his apartment and put everything in storage.

• Travels continuously
• Uses his sister’s address for mail
• Hasn’t returned “home” in 18 months
• Has no housing expenses

❌ No valid tax home — Fails all three factors

Example 2: Abandoned Residence

Lisa technically has an apartment in Florida but:

• Hasn’t been back in 2 years
• Stopped paying rent 8 months ago
• Has no belongings there
• Never works in Florida

❌ No valid tax home — Abandoned the residence

Example 3: Permanent Traveler

Chris travels full-time in an RV.

• No permanent address
• Uses a mailbox service for mail
• Parents’ address on driver’s license (but doesn’t live there)
• Has no duplicate housing expenses

❌ No valid tax home — No fixed residence to return to

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Gray Areas and Risky Situations

Some situations are unclear. If you’re in one of these, consult a travel nurse CPA:

Paying Rent but Never Returning

You pay rent at an apartment but haven’t returned in 18+ months due to back-to-back contracts.

⚠️ Risk: The IRS could argue you’ve abandoned the residence in practice, even if you’re still paying.

Staying with Family for Free

Your parents let you stay in your old room rent-free.

⚠️ Risk: You’re not duplicating expenses. You should pay fair market rent and have documentation.

Partner’s Home

Your boyfriend/girlfriend owns a home where you stay between assignments.

⚠️ Risk: Unless you’re on the lease/mortgage and paying documented expenses, this is questionable.

Minimal Presence

You return once a year for one week.

⚠️ Risk: While there’s no required minimum, very infrequent returns weaken your claim.

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How to Establish a Tax Home

If you’re new to travel nursing or don’t currently have a valid tax home, here’s how to establish one:

Step 1: Choose a Location

Consider:

• No state income tax: Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, New Hampshire
• Low cost of living: Keep housing expenses manageable
• Family connections: Easier to maintain ties
• Job opportunities: For occasional local work

Step 2: Secure Housing

Options:

• Rent an apartment — Most straightforward
• Buy a home/condo — Strongest claim, equity building
• Rent a room — More affordable, still valid
• Pay rent to family — Must be fair market rate, documented

Step 3: Document Everything

Keep records of:

• Lease or mortgage documents
• Monthly payment receipts
• Utility bills
• Time spent at home
• Local work (if any)

Step 4: Maintain the Home

• Pay housing costs consistently
• Return regularly
• Keep belongings there
• Maintain ties (registration, voting, etc.)

Read more: How to Establish a Tax Home for Travel Nursing

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Tax Home vs. Legal Residence vs. Domicile

These terms are often confused:

For travel nurses:

• Your tax home affects your federal tax treatment
• Your legal residence/domicile affects which state taxes you

These can be the same place but don’t have to be.

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Tax Home and the 12-Month Rule

An important IRS rule: if your assignment in one location exceeds 12 months, that location becomes your tax home.

How This Affects You

• Working 13-week contracts? No problem
• Extending at the same hospital for 2 years? That location becomes your tax home
• Working at different hospitals in the same metro area? The clock is cumulative

Staying Compliant

• Track your time in each area
• If approaching 12 months, either leave or convert to staff position
• Taking a break doesn’t reset the clock—you need significant time away

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Frequently Asked Questions

Can I have a tax home if I live with family?

Yes, but you should pay fair market rent and have documentation. Simply staying for free doesn’t create a tax home.

How much rent do I need to pay?

There’s no minimum, but it should be “reasonable” for the area. Paying $100/month for a bedroom that would normally rent for $800 could raise red flags.

What if my spouse and I have different tax homes?

Married couples can have separate tax homes if they work in different locations. Each spouse’s tax situation is evaluated independently.

Do I need to own property for a tax home?

No. Renting is perfectly valid for establishing a tax home.

Can an RV be a tax home?

Possibly, if you have a permanent lot where you pay rent and return regularly. A mobile RV that travels everywhere is generally not a tax home.

What if I’m audited?

You’ll need to prove your tax home with documentation: lease, payments, utility bills, records of time spent there, and evidence of maintaining ties.

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Protecting Your Tax Home Status

Do This:

✅ Keep all documentation for 7 years ✅ Return to your tax home regularly ✅ Maintain real expenses there ✅ Work locally when possible ✅ Keep ties (mail, registration, voting) ✅ Work with a travel nurse CPA

Avoid This:

❌ Taking tax-free stipends without a real tax home ❌ Staying away for years without returning ❌ Keeping only a mailbox or mail forwarding ❌ Paying token rent that doesn’t reflect reality ❌ Using someone else’s address without real presence

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The Bottom Line

Your tax home is the foundation of your travel nurse tax strategy. Without a valid tax home, you can still travel nurse—you’ll just receive all taxable pay instead of tax-free stipends.

If you want to benefit from tax-free stipends:

1. Establish a real, permanent residence
2. Pay documented housing costs
3. Return regularly
4. Keep meticulous records
5. Work with a specialized CPA

The cost of maintaining a tax home (even $1,000/month) is usually far less than the taxes you’d owe without one.

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Related Resources

• Ultimate Travel Nurse Tax Guide 2026
• How to Establish a Tax Home
• Tax-Free Stipends Explained
• Travel Nurse Tax Deductions
• Travel Nurse Pay Calculator — See how your tax home affects take-home pay