For travelers, stipends are tax-free when they are used to cover duplicated expenses, such as lodging and meals, and do not have to be reported as taxable income. Under the new 2018 tax laws, deductions or write-offs are no longer an option for travel nurses.

Do travel nurses get their flights paid for?

Travel is always complimentary before and after a completed assignment. Not only are they paid for, they’re arranged for you too. All you have to do is pack and fly. Complimentary housing during your assignment is also provided to you in addition to your hourly pay.

What is a travel nursing stipend?

Travel nurse agencies use the term stipend because it more clearly reflects the benefit they are providing — a set sum of money given as a housing allowance. A stipend is the better term to use for the travel nurse industry because most assignments last between 8 and 13 weeks rather than a matter of days.

What is a tax exempt stipend?

A stipend is nothing but a payment made to a trainee or a person – who is a learner – for living expenses. As per the Income Tax Act, stipend is a scholarship given to meet the education expenses. Thus, it is exempted from income tax under Section 10 (16).

Do travel nurses make 6 figures?

In addition to their base wage, travel nurses can also receive extra compensation that can include sign-on and referral bonuses as well as housing, expense, and meal stipends. For some travel nurses, it can even be possible to make six figures — or over $100K — as a travel nurse.

Is there a housing stipend for travel nurses?

The travel nurse housing stipend is one of the largest components of the travel nursing pay package. But understanding exactly how the housing stipend works can be difficult.

What kind of reimbursements do travel nurses get?

The most common types of stipends or reimbursements that you will hear about in the travel nursing world are referred to as meals and incidentals (incidentals include taxi/bus fares, parking, and tips), lodging or housing stipends, and travel reimbursements which cover your expenses to and from each assignment;

How did a travel nurse become a specialty?

Travel nursing is a specialty that took root when the field of nursing faced a nationwide shortage. Hospitals, clinics, and other care areas had unfilled positions, yet had patients needing care. To try and attract nurses to the open positions, employers offered higher pay, housing, and covered the cost of relocating.

Do you need a tax home to be a travel nurse?

Some companies offer a housing stipend, or a fixed amount of money each month to apply towards housing. First, nurses need to be aware of where their “tax home” is, as stipends are tax-free if working away from the tax home. Having a tax home is necessary to receive tax-free housing.