7 Tax Tips for Travel Nurses (2026 Update): Stipends, Tax Home, and Deadlines

What are the most important tax tips for travel nurses in 2026?

For most travel nurses, the biggest tax risks in 2026 are:

1. Taking tax-free stipends without solid “tax home” support

2. Missing a state return

3. Failing to document contracts, housing, and travel.

For most filers, April 15, 2026 is the deadline to file and pay 2025 federal taxes.

Disclaimer: This article is general information, not tax advice. Talk with a qualified tax professional or CPA about your specific situation.

1) Should travel nurses rely only on tax filing software?

Tax software can be fine for simple W-2 returns, but travel nurse taxes often include multi-state filing, stipends, and tax-home documentation, which can be easy to mis-handle in a “guided interview” workflow.

If you use software, plan to double-check:

• Every state you worked in (and whether you owe a nonresident return)

• How stipends and reimbursements are reported on your tax documents

• Whether you have documentation to support tax-free treatment of reimbursements

2) How do you find a tax professional who actually understands travel nursing?

Look for a preparer who regularly works with travel healthcare clients and can clearly explain tax-home basics, stipend rules, and multi-state returns (without hand-waving).

A service like TravelTax.com can be a starting point for finding professionals familiar with traveler-specific issues.

3) What are the key tax deadlines travel nurses need to know in 2026?

For most people:

• April 15, 2026: deadline to file and pay your 2025 federal return

• April 15, 2026: deadline to request an extension (Form 4868)

• October 15, 2026: extended deadline to file (if you properly extended)

Important: an extension is extra time to file, not extra time to pay; you still pay by April 15 to reduce penalties and interest.

4) What counts as a “tax home,” and why does it matter for travel nurses?

Your “tax home”, as defined by the IRS, is generally the main area of your work, and it matters because tax-free travel reimbursements (including many stipends) depend on being legitimately “away from home” for work. One key factor the IRS uses: your duties require you to be away from the general area of your tax home long enough that you need sleep or rest to meet the demands of your job.

Practical ways travel nurses often support a continuing home base include keeping consistent ties (like driver’s license/vehicle registration) and maintaining records that show you’re duplicating expenses.

5) When are stipends tax-free, and when could they become taxable?

Stipends and reimbursements are most defensible as tax-free when you can support that you’re:

• Working away from your tax home in a way that requires sleep or rest, and

• Truly duplicating expenses (home + assignment), and

• On a temporary assignment situation rather than a permanently relocated role (your tax pro should help you evaluate this based on your facts)

Also, many travel pay packages reference per diem benchmarks. For FY 2026, U.S. General Services Administration kept CONUS per diem rates the same as FY 2025, and you can look up rates by location.

One important myth to avoid

There is no official IRS “50-mile rule.” The rule for business travel expenses, is about being away from your tax home long enough that you need sleep or rest; distance is not the deciding factor.

Stipends can be offered based on facility/agency rules, but whether they’re tax-free is determined by the IRS.

A facility might require you to live “X miles away” to qualify for a stipend package, but the tax treatment depends on your tax home, temporary assignment status, and documentation; not a mileage threshold.

What do facilities/agencies mean by a “50-mile rule” (or similar)?

Many facilities and staffing agencies use distance rules (often 50+ miles, sometimes different) as an internal eligibility requirement to decide whether a role is set up as a “travel” position with a stipend package.

Common reasons they use these rules:

• To create a consistent, easy-to-administer standard across locations

• To reduce disputes about who qualifies for travel packages

• To align pay packages with internal compliance and payroll practices

Important: This is an employer policy, not a federal tax rule.

What does the IRS actually use to determine whether stipends are tax-free?

The Internal Revenue Service does not use a “50-mile rule” to decide whether stipends are tax-free. In general, tax-free treatment is tied to whether you’re legitimately traveling away from your tax home for a temporary assignment and can substantiate your situation.

In practice, that means you should be able to support things like:

• A real tax home you maintain (not just a mailing address)

• Duplicate expenses (you’re paying costs at home and at the assignment)

• The assignment is temporary based on your facts and pattern of work

• You have records (contracts, housing receipts/lease, travel receipts, etc.)

What’s the key takeaway travel nurses should remember?

Facility rules determine whether you’re offered a stipend. IRS rules determine whether it’s tax-free. So even if you meet a facility’s mileage policy and receive a stipend, it may still be taxable if you can’t support tax-home and travel requirements.

What should you do before accepting (or extending) an assignment?

• Ask your recruiter what the facility/agency stipend eligibility rules are (distance, permanent address, etc.).

• Keep documentation that supports your tax home and duplicate expenses (especially if you take multiple contracts in one metro area).

• If you’re unsure, talk to a tax pro familiar with travel healthcare before tax season.

6) What paperwork should travel nurses keep; and for how long?

Keep copies of:

• Contracts and extensions

• Pay stubs and year-end tax forms (W-2/1099)

• Housing receipts/leases

• Travel receipts (transportation, lodging, etc.)

• License and credentialing documentation

The IRS guidance on record retention varies by situation; a common safe approach is keeping records at least 3 years, and up to 6 years in certain circumstances; so keeping your travel documents for 6 years is a conservative, practical habit.

Tools that help: Expensify, Smart Receipts, and Google Drive for scanning and organizing receipts.

7) Which receipts are worth saving in 2026?

Save receipts and proof for expenses that commonly come up for travel clinicians, including:

• Licensing and credentialing fees

• Professional association dues

• Required physicals, vaccines, drug screens

• Lodging and temporary housing costs

• Transportation (flights, public transit, parking, rideshare)

• Work-related supplies you were required to purchase

One key note for W-2 employees: unreimbursed employee expenses are generally not deductible as miscellaneous itemized deductions under federal rules; so tracking is still valuable for reimbursements, audits, and state-level rules, even when it doesn’t create a federal deduction.

What should you know about Advantage Medical Professionals and taxes?

Advantage Medical Professionals is an employee-based firm that pays travel nurses and clinicians directly (W-2), including withholding required payroll taxes. (Confirm details with your recruiter and pay documents.)

Where can you find your next assignment?

If you’re looking for your next role, here are quick search links:

• For RNs: Search RN Jobs

• For LVNs/LPNs: Search LVN/LPN Jobs

FAQ

Is there an IRS “50-mile rule” for travel nurse stipends?

No. The IRS does not set a mileage minimum (like 50 miles) for tax-free stipends. The IRS looks at whether you have a legitimate tax home, whether you’re working away from that tax home on a temporary assignment, and whether you can substantiate your situation with records. However, facilities and agencies sometimes apply a “50-mile” (or similar) requirement as an eligibility rule for offering stipends. Facility rules determine whether you’re offered a stipend; IRS rules determine whether it’s tax-free.

If I file an extension, do I get more time to pay?

No. An extension generally gives more time to file, but you still need to pay by April 15 to reduce penalties and interest.

What’s the 2025 IRS standard mileage rate?

For 2025, the standard mileage rate for business use is 70 cents per mile.

How long should I keep tax and contract records?

The IRS recordkeeping window depends on circumstances; 3 years is common, and 6 years applies in certain situations; so keeping travel documents for 6 years is a practical default.