Answers to the 15 most common tax questions from travel therapists.
A permanent residence you maintain while traveling — with real rent/mortgage, utilities, and regular returns. It's what makes your stipends non-taxable. Full tax guide.
Typically $10,000-$20,000/year in additional taxes. If audited retroactively for multiple years, the total can reach $30,000-$50,000+. See the full comparison.
Non-taxable IF you maintain a valid tax home with real duplicate expenses. Without a tax home, ALL stipends become taxable.
Keep a permanent residence, pay real expenses monthly, return between assignments, maintain personal ties (voter registration, vehicle registration). Full maintenance checklist.
Licensing fees, CEUs, professional memberships, malpractice insurance, clinical supplies, and travel between assignments. Complete deductions guide.
Probably yes. W-2 withholdings often don't cover your full liability because stipends reduce reported income. Estimated payments guide.
Resident return in tax home state (all income) + non-resident returns in each work state. Claim credits for taxes paid elsewhere. Multi-state filing guide.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. State tax details.
Strongly recommended. The tax home rules alone represent $10,000-$20,000/year. A specialist CPA at $300-$600 pays for itself. How to find one.
At least 4 years. The IRS can audit 3 years back; an extra year provides a buffer.
The IRS reviews your documentation — lease, utility bills, evidence of returns, registration. Strong documentation protects you. Without it, stipends get reclassified as taxable.
Possibly — if you have a real lease in your name, pay real rent, and maintain a livable space. Paying token rent for a storage room is risky.
Your W-2 shows lower income because stipends aren't reported. Some lenders understand travel healthcare pay; you may need additional documentation.
No. Compacts are licensure only. You owe state income tax wherever you work regardless of compact status.
IRS treats assignments under 12 months as temporary. Staying longer (including extensions) at one location may reclassify it as your tax home.
Connect with experienced travel therapy tax professionals.