Travel Nursing: Exploring Out-Of-State Opportunities

Travel nursing is an exciting career path that offers adventure, variety, and an attractive salary. Travel nurses can work in various locations across the United States, from Florida to Hawaii, and even in their home state. One of the biggest perks of the job is the opportunity to travel and work in different states. However, this raises the question: what are the requirements for travel nurses who want to work out of state? This involves considerations such as licensing, housing, and travel costs. Each state has its own nursing license requirements, and understanding these regulations is crucial for travel nurses intending to work across different states.

Local travel nursing: You can be a travel nurse in your own state

It is indeed possible to be a travel nurse in your own state. This is known as "local travel nursing", and it offers a range of benefits for nurses who want to enjoy the perks of travel nursing without having to travel too far from home.

Local travel nursing allows you to work at a hospital near you on a contract basis. The hospital can be just minutes away from your home or a bit farther. One thing to keep in mind is the "50-mile rule", which is often used by hospitals as a general guideline to prevent their full-time staff from picking up contracts. This rule states that a travel nurse must maintain a tax home a certain distance away from the facility, typically within 50 miles or sometimes further. If you work with a hospital that is less than 50 miles from your home, you may not receive the tax-free stipend that is given for additional costs like housing. However, you will still make more than you did as a staff nurse.

Local travel nursing can be a great option for nurses with families who want to stay close to home. It also eliminates the need for additional licenses, as you can easily maintain one state license while taking on contracts throughout your city or state. It offers a better work-life balance, higher pay than staff nurses, and the flexibility to choose your own jobs and work schedules.

However, there are also some disadvantages to local travel nursing. You may miss out on the opportunity to travel and see new places, and your contract options may be limited depending on the demand for nurses in your area. Additionally, you may have to maintain two living spaces if your contract is far from home.

Overall, local travel nursing can be a rewarding option for nurses who want to experience the benefits of travel nursing while staying close to their families and communities.

Nursing Licensure Compact: A multistate license for nurses

The Nursing Licensure Compact (NLC) is an agreement between states that allows nurses to have a single compact state nursing license that gives them the ability to practice in other states that are part of the agreement. As of May 2023, there were 39 states that were part of the NLC, but this has since expanded to 42 jurisdictions as of June 2024. The NLC increases access to care by allowing nurses to practice seamlessly in other NLC states without obtaining additional licenses. This helps protect patients by maintaining high standards of care and facilitating communication between member states.

The NLC was originally developed in 2000, and by 2015, the license had grown to include 25 states. The Enhanced Nursing Licensure Compact (eNLC) was implemented in 2018 and included standards for licensure, which the original compact license lacked. For example, the eNLC requires applicants to undergo state and federal fingerprint-based criminal background checks.

The eNLC is supported by many organizations throughout the country, including the American Association of Colleges of Nurses, the American Association of Neuroscience Nurses, the American Association of Occupational Health Nurses, and the American Association of Poison Control Centers, among others. However, some states and organizations do not support the eNLC due to concerns about disciplinary actions, the growth of telemedicine and telenursing, and the loss of state revenue for new single-state licensees.

To apply for a multistate license, nurses must meet the licensure requirements in their state of residence and the requirements set by the eNLC. These requirements include graduating from a board-approved education program, passing an English proficiency exam (if applicable), passing the NCLEX-RN or NCLEX-PN Examination, having an active and unencumbered license, and submitting to state and federal fingerprint-based criminal background checks.

The NLC and eNLC provide many benefits to nurses, including the ability to take immediate job vacancies without waiting for licensure, practicing via telenursing in other eNLC states, and responding to national disasters and staffing shortages in other eNLC states. Additionally, nurses holding compact licenses can teach via distance learning in other eNLC states.

Tax-free reimbursements: Travel nurses can receive these when working away from their tax home

Travel nursing can be a rewarding career, offering the opportunity to explore new places and experience the benefits of travel without straying too far from home and family. One of the most attractive benefits of travel nursing is the potential for tax-free reimbursements when working away from your permanent tax home. Here's everything you need to know about maximizing your tax benefits as a travel nurse:

Understanding Your Tax Home

Firstly, it's crucial to understand the concept of a "tax home." This term doesn't always refer to your permanent residence. Instead, your tax home is defined by the Internal Revenue Service (IRS) as "the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home." This means that your tax home is typically where you earn the majority of your income.

For travel nurses, the concept of a tax home becomes more complex since they often work in multiple locations and don't have a single primary workplace. To receive tax-free reimbursements, travel nurses must establish and maintain a tax home. This can be tricky, and it's important to seek guidance from a tax professional familiar with the unique circumstances of travel healthcare workers.

Rules for Tax-Free Reimbursements

Now, let's dive into the four essential rules that travel nurses should follow to maximize their chances of receiving tax-free reimbursements:

• Duplicate Expenses at Fair Market Value: Travel nurses must prove that they are duplicating living expenses by maintaining their permanent tax home while also paying for temporary housing during their assignments. This usually involves renting or owning a home and renting a second residence while on assignment. It's important to keep receipts and documentation to prove these duplicate expenses.
• Travel Distance: Contrary to popular belief, there is no specific distance requirement for tax-free reimbursements. The key factor is that you must travel far enough away from your tax home that you need to sleep and rest at a second location. This distance should be greater than a reasonable commute, and it should require you to incur additional lodging expenses.
• Maintain Strong Ties to Your Tax Home: To avoid abandoning your tax home, it's important to maintain strong ties to that location. This includes returning to your tax home for at least 30 days per year, even if those days are spread across multiple visits. Keeping your driver's license, vehicle registration, insurance, and voter registration at your tax home address also helps demonstrate strong ties.
• Keep Moving and Avoid Staying in One Area for More than a Year: Remember that your tax home is your regular place of income. If you build regular income in a new area for more than 12 months, that new location may become your tax home, and you could lose your tax-free status. To avoid this, act as you would on a typical 13-week business trip. Don't change your driver's license or move all your belongings, and try to return home whenever possible.

Additional Considerations

While these four rules provide a solid foundation for understanding tax-free reimbursements, there are a few other considerations to keep in mind:

• Seek Professional Tax Advice: Tax laws can be complex and ever-changing. It's always best to consult a tax professional familiar with the unique circumstances of travel nurses to ensure you're complying with the latest IRS regulations and maximizing your tax benefits.
• Understand State Taxes: In addition to federal taxes, travel nurses may need to file state tax returns in every state they work in, as well as their home state. Some states have reciprocity agreements, which means travel nurses only need to pay taxes in one of those states. However, each state has different laws, so be sure to consult a tax expert for guidance.
• Keep Detailed Records: Maintaining meticulous records is essential for tax purposes. Keep a receipt book for all your travel-related expenses, including housing, uniforms, work-related courses or certifications, internet and phone expenses, and more. While some of these expenses may not be deductible on your federal return, they might be deductible on your state return, depending on the state.

By following these guidelines and seeking professional tax advice, travel nurses can maximize their tax benefits and confidently navigate the complexities of their unique financial situation.

Housing: Travel nurses can be provided with housing by their agency

Housing is one of the most important pieces of the pay package for travel nurses, but it can also be one of the most challenging aspects of the job. Travel nurses have the option of agency-placed housing or a stipend pay option.

Agency-Placed Housing

Agency-placed housing is often the more stress-free option. The agency will typically have an internal housing department that finds a place for a short-term lease, and may even have long leases that they rotate nurses in and out of. The agency will also rent furniture and pay utilities, and can even provide housewares like linens and dishes for an extra fee. This option is simple, especially for those new to travelling, as it means nurses don't have to worry about security deposits or setting up utilities. It also provides better availability and pricing, and landlords may be more attentive when trying to please a large corporate staffing agency.

Stipend Pay

With the stipend option, travel nurses receive a stipend and make their own housing arrangements. This gives nurses more control over where and how they live, and can even allow them to make money off the stipend if they find cheap housing. However, this option can be more time-consuming and stressful than anticipated, and there may be tax implications.

Contracts: Travel nursing contracts are typically 13 weeks long

Travel nursing contracts are typically 13 weeks long, but they can vary in duration from 8 to 26 weeks or more. Some contracts can be as short as 8 weeks or as long as 52 weeks. The length of a contract will depend on the needs of the healthcare facility and the preferences of the travel nurse.

The appeal of shorter contracts is that they allow travel nurses to experience a variety of locations and roles, as well as meet and work with different teams of healthcare professionals. Shorter contracts also enable travel nurses to develop a range of skills and gain experience in diverse healthcare settings.

On the other hand, longer contracts may be preferable for travel nurses who want to settle into a role and establish a routine. Longer contracts can also provide an opportunity to develop a deeper connection with colleagues and the local community.

Regardless of the contract length, travel nurses typically relocate to a new city or location every 13 weeks, as this is the most common duration for assignments. Travel nurses who wish to extend their stay at a particular location may be able to do so by negotiating an extension with the healthcare provider, usually for an additional three to five weeks.

It is important to note that, according to IRS regulations, travel nurses must change assignments at least once a year. After a year in the same location, the IRS considers the assignment permanent, and the location becomes the travel nurse's tax home. As a result, any benefits, such as meals, housing, and transportation, become taxable.

To maintain their tax-free status, travel nurses need to be mindful of the duration of their assignments and the amount of income they earn in any given location. By following the guidelines, travel nurses can maximise their benefits and avoid unexpected tax expenses.

Frequently asked questions