Traveling nurses have the opportunity to travel across the United States and earn a rewarding living at the same time. You get to help people who need your kind, compassionate expertise and care, get free housing and can earn as much as $40 per hour. Generally, travel nursing pay is based on a sliding scale. Tax season is here, which means you must file your taxes as a travel nurse. Here are five key tips for filing your taxes as a travel nurse.
Track Your Expenses
Always track your expenses as a traveling nurse. If you don’t want to do it the old-fashioned way using paper and pen, you can simply download any number of apps to your smartphone to track your expenses. Make sure to keep your entries clear and to the point. It will help you to more easily match each expense with receipts and ensure that you file accurately.
Keep All Relevant Receipts
It’s important to keep all of your receipts, including fuel, utilities, dining, uniforms and other expenses related to your work. You can keep the actual paper receipts or take photos of them to store on your smartphone. It’s a good idea to have the receipts stored safely somewhere that you can easily access them, especially in the event that you end up being audited by the Internal Revenue Service. Look for smartphone apps that allow you to electronically store any and all receipts if it’s more convenient for you.
Become Familiar with State Income Tax
Some traveling nurses are required to pay taxes in their home state as well as in the state where they travel to work. A total of 41 states have a state income tax. Those that do not include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. It’s wise to become familiar with the state income tax for both the state in which you reside and the one in which you work your chosen profession. Check with a tax expert like an accountant who’s familiar with state income tax laws related to travel nursing to get as much information as possible.
Always File Taxes Timely
You can file your taxes yourself or have an accountant prepare and file them for you. Whichever option you prefer, the sooner you file, the better. It will ensure that you get your tax refund sooner and minimizes your chances of being audited and owing the IRS money for late returns.
Enroll in Tax Advantage Plan
Enrolling in a tax advantage plan with travel nurse agencies can help you to increase your pay by up to $10,000 annually. Look into this option to learn how it can benefit your finances.
Following all of these tips will definitely help you come tax season. As a travel nurse, it’s vital to repeat these steps each year because they can only benefit you in the long run.