Alright, let’s talk about something that sounds intimidating but really isn’t—your tax home and how to plan your finances as a travel healthcare worker.
Now, I know what you’re thinking: “Taxes? Budgeting? Gross. I just want to travel, make money, and not get audited.” And honestly? Same. But a little bit of planning now can save you from major headaches (or worse, IRS letters) down the road.
So, let’s break this down in a way that keeps things simple, practical, and stress-free—because the whole reason you got into travel healthcare meant freedom, not spreadsheets.
What Even Is a Tax Home?
You might assume that your tax home is wherever you receive mail or where your mom keeps your old elementary school yearbook. Nope.
Your tax home is not the same as your permanent address. Instead, the IRS considers your tax home to be the place where you do most of your work or where you maintain housing expenses while working temporary contracts elsewhere.
Why does this matter? Because keeping a legitimate tax home is what allows you to receive tax-free stipends for housing and meals while on assignment. These stipends are a huge part of what makes travel healthcare so financially rewarding.
How Do You Maintain a Tax Home?
You can maintain your tax home in two main ways:
- Work there regularly – Meaning you return and work a fully taxed job there consistently.
- Duplicate housing expenses – Basically, pay to keep a place there while also paying for housing at your travel assignment.
For most travelers, option #2 is the way to go. This means keeping a room in your tax home area and paying for it the whole time you’re on assignment. You will have to spend at least 30 days per calendar year in your tax home area.
💡 Pro Tip: Keep records of when you return to your tax home (gas receipts, flight tickets, etc.)—because the IRS doesn’t take your word for it.
Tax Rules? Just Get an Accountant. Seriously.
I could throw a bunch of IRS jargon at you, but here’s the real takeaway: this is not something to stress over.
Yes, there are rules about how far away a contract needs to be, how long you can stay in one place, and how stipends work. But at the end of the day, a tax professional is your best friend here.
Your staffing agency might not fully understand these tax rules either, so don’t rely on them for tax advice. Instead, find a travel healthcare tax specialist (like TravelTax —side note their social media accounts are hilarious) and let them handle the hard stuff. You focus on the fun part—actually traveling.
Financial Planning: Because Money = More Adventures
Now that we’ve covered tax homes, let’s talk about keeping your money in check so you can make the most of your travel healthcare lifestyle.
A lot of travelers get caught up in the excitement of new places and big paychecks—but if you don’t plan, you might find yourself broke between contracts (been there, done that).
Here’s what you need:
✅ A budget that keeps your finances organized but flexible.
✅ A plan for taxes (because those stipends? Not taxable. Your hourly rate? Very taxable).
✅ A savings cushion for when you take time off between contracts.
I could give you a complicated breakdown, but let’s keep it easy. I highly recommend you use this Google Sheets budget template—perfect for tracking income, student loans, expenses, and savings in one place.
Final Thoughts: Travel Healthcare = More Freedom, Not More Stress
At the end of the day, don’t let tax rules or financial planning scare you away from the best decision you’ll ever make—becoming a travel healthcare.
All you really need to do is:
🔹 Keep a tax home (so you keep those sweet tax-free stipends).
🔹 Get an accountant (so you don’t have to stress about tax laws).
🔹 Make a budget (so you can enjoy the travel lifestyle without money worries).
Do that, and you’ll be financially solid—with way more freedom to explore, adventure, and enjoy everything travel healthcare has to offer.
StartMedTravel 