For most travel nurses, the biggest tax risks in 2026 are:
Taking tax-free stipends without solid “tax home” support
Missing a state return
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.
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
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.
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.
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.
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.
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.
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.
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.
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.)
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.
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.
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.
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.
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.)
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
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.
No. An extension generally gives more time to file, but you still need to pay by April 15 to reduce penalties and interest.
For 2025, the standard mileage rate for business use is 70 cents per mile.
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.