This is one of the most mixed up and cloudy topics in healthcare travel. And, unfortunately even a well trained tax preparer may not fully understand and appreciate the rules and their application.

A "tax home " is the home you return to on a regular basis where you incur substantial and recurring expenses. You should also have strong legal and historical ties. These might include: driver's license, voter registration, banking, car registration, and mail delivery.

• If you have a tax home, but rent it out while traveling, without maintaining a portion of it for yourself, you are disqualified from tax free reimbursements.
• You can not use storage units as a residence.
• Do not use a P.O. Box as a residence
• An RV that you take with you on assignments does not qualify for tax free reimbursements.

A permanent residence is a place where you live that has legal and historical ties but does not require the maintenance of a primary home

Claiming an address doesn't give you rights to tax free reimbursements. You must have substantial recurring expenses to legally qualify for tax free reimbursements.

• Make sure you have a tax home that qualifies.
• Keep strong financial and legal ties such as:
  1. a checking account
  2. driver's license
  3. car registration
  4. voter's registration
  5. mail delivery
• Keep diligent records
• Consult a RN TaxPro to help you with your tax matters.

There is no "50 Mile Rule. "

IRS rules can be confusing and should not be confused with the rules of your travel company or hospital policy. IRS rules are based on the subjective data as it relates to the specific individual.

For example: If the travel distance requires the nurse to stay overnight to be refreshed to perform her job, then this qualifies. If the nurse travels home after every shift, then tax free reimbursements don't apply. This distance is different based on the nurse. This is called the Sleep and Rest Test.

If you never got around to filing your taxes during the past few years, you're not alone. The lifestyle of healthcare travelers makes tax time particularly challenging—and increases the likelihood of missed or inaccurate filings. RN TaxPro is uniquely positioned to help the traveling nurse address both federal and state past due tax filing issues.

The IRS generally does not address unfiled returns for at least a year and a half makes. And, although you may never hear from IRS—if the amount of income reported by employers, banks, and other entities corresponds appropriately to the amount of tax withheld or paid as estimates—you still need to be cautious.

The IRS can use prepare a substitute return in lieu of receiving an original document. If they determine that there is an amount due, the IRS will issue you a notice. Substitute returns do not apply any credits or deductions to which you are entitled. You may lose your credits and deductions and even a refund if you do not file a return within a prescribed period of time.

Additionally unfiled returns are likely to give rise to the accumulation of interest and penalties. While the interest charges can be quite nominal, the penalties can become quite punitive.

Failure to file a tax return may also negatively influence other aspects of your life such as:

• increasing stress levels
• inhibiting loan and credit approvals
• eliminating Social Security benefit

For the traveling nurse, or health care professional, another unwanted side effect of non-filing involve state taxes. More than 41 states require the filing of a state income tax return and like the IRS these agencies may file a substitute return (to your last known address).

The State revenue agencies have their own sets of policies and penalties regarding unfiled returns. And, it’s not uncommon for a traveling healthcare professional to discover years later that they have a tax lien against them from another state.

The cost to correct past-due tax problems can quickly escalate to several thousand dollars if not dealt with properly. RN TaxPro can help you locate old records and file past due tax returns to avoid many of these problems. In some cases we can even help you avoid paying penalties and interest, something most tax preparers cannot claim!