Tax season can be stressful for many people, especially when you are a travel nurse working multiple jobs a year. Have you heard about the 12-month rule for travel nurses? If not, here’s what it is all about.

The 12-month rule states that a travel nurse should not work in the same area for more than 12 months out of a 24-month period. The main reason for this is to avoid large tax costs. There is a rule from IRS guidelines that define “temporary assignments” as work assignments that last one year or less. If a travel nurse works in the same area for a year or longer, the IRS could consider the city their new tax “home”. This would disqualify the nurse from receiving tax benefits and more, including stipends for housing and meals. Additionally, this prevents the travel nurse from becoming a permanent employee of the hospital they work for.

If you exceed the 12-month rule, you must take a break of a full year, or 12 months, before you can return to that city and receive tax-free stipends again. Nurses must also ensure the income they earn in any one travel destination doesn’t constitute most of the total annual income. Interested in learning more? Here are the updated 2025 tax rules:

If you don’t have a regular place of business, the following will determine your “tax home”

• You perform part of your business where you keep your main home and use that home for lodging when you do business in this area
• You have living expenses that you duplicate between your main home and another residence because your business requires you to be away from home
• You haven’t abandoned the area where your historical place of lodging and claimed main home is located, a family member is living at your main home, or you often use the home for lodging

If you meet all 3 of these factors, your tax home is where you regularly live and work. A travel nurse who has met the last 2 requirements could meet those requirements by duplicating living expenses and having someone live in their home. This would make their tax home their main home and not where they stay on assignment.

For more details, head to https://www.irs.gov/taxtopics/tc511 !

P.S., here are 9 things you can write off on your taxes as a travel nurse:

Mileage or the cost of gas, a rental car, uniform & equipment costs, continuing education, licensing fees, travel expenses, some meals, retirement & insurance contributions, and expenses that go into paying for your tax home!

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