What you can deduct, what you can't, and how to track everything properly.
Tax deductions for travel therapists have changed significantly since the Tax Cuts and Jobs Act (TCJA) of 2017. The TCJA eliminated the unreimbursed employee expense deduction for W-2 employees through 2025. This means many deductions that were available before 2018 may not apply the same way today.
That said, several deductions remain available, and some expenses may be deductible through other mechanisms. A CPA specializing in travel healthcare is essential for maximizing your legitimate deductions under current law.
Every state license you purchase for travel assignments is a professional expense. If you hold 5-8 state licenses, these costs add up to $500-$2,000+ per year. Compact privilege fees are similarly deductible.
CEU courses, workshops, conferences, and certification exams required to maintain your license are deductible. This includes registration fees, course materials, and associated travel costs for in-person events. Many agencies provide CEU stipends ($500-$1,500/year) — expenses beyond what your agency covers may still be deductible.
APTA, AOTA, ASHA dues, specialty section memberships, and state association fees. These are straightforward professional expenses.
Premiums for professional liability insurance you pay out of pocket. Some agencies provide this; if yours doesn't, the premiums are deductible.
Scrubs and clinical clothing not suitable for everyday wear. Clinical tools you purchase for work (goniometer, dynamometer, etc.). Professional reference books and subscriptions.
Mileage or transportation costs when traveling from your tax home to an assignment location, or between assignment locations. The IRS standard mileage rate applies. Keep a mileage log with dates, destinations, and purpose.
Housing expenses at your assignment location — your housing stipend covers this tax-free (if you have a valid tax home). You can't also deduct it.
Meal expenses at your assignment location — covered by your M&IE stipend.
Commuting to your assignment facility — daily commuting from your local housing to the facility is not deductible (same as any employee commuting to work).
Personal travel or vacation — even if you combine personal travel with an assignment move.
Keep receipts for everything. Digital copies are fine — save them in a dedicated folder organized by year and category.
Use a mileage tracking app for travel between assignments. Manual logs work too, but an app is more reliable and creates automatic records.
Separate personal and professional expenses. Use a dedicated credit card or bank account for professional expenses to simplify tracking.
Don't guess at tax time. Track expenses throughout the year. A monthly 10-minute review is easier than reconstructing a year's worth of expenses in April.
For the full tax picture, see our main tax guide and how to find a CPA.
Connect with experienced travel therapy tax professionals.