Although you may still be enjoying last year’s tax return now, it is never too early to start thinking about next year’s taxes. As a travel nurse, it can sometimes be difficult to keep track of all documentation needed to have a smooth tax filing process, but it doesn’t have to be. Take a look at the tips and tricks below to stay ahead of your traveling nurses’ taxes year-round!
- Keep Records of All Expenses
At first glance, it may seem overwhelming, but keeping a record of all expenses will ensure you have all information documented when it comes time to file taxes. Record-keeping can be performed in an Excel or Google spreadsheet or using one of many expense tracking apps on your smartphone or laptop. Once you organize your lists with spending categories like travel and accommodations, professional expenses, and costs of maintaining your permanent address, it will become easier to see patterns and track your travel nursing expenses.
- Retain Your Receipts
Keeping records is only the first step. It’s essential to retain receipts to support what you claim. Whether you maintain hard copies of receipts or scan them and store electronically, receipt record keeping comes in handy in the event there is ever an audit. Set aside an envelope to collect receipts after documenting the expenses, or scan your receipts with popular apps like Evernote, Shoeboxed, Expensify, or TurboScanner.
- Research State Income Tax Requirements
One of the benefits of travel nursing jobs is moving from your home state and gaining priceless memories and nursing experience by living and working all over the country! But it’s important to remember that each state has its own tax code and there can be significant differences between some of them. If you are a traveling nurse who is working outside of your primary residence, be sure to research each state’s requirements and learn what is necessary for filing your traveling nurse taxes in each state where you work.
- Be Aware of Traveling Nurses’ Tax Deductions
Many traveling nurses aren’t aware of the full number of items that may be considered tax deductions. Some tax deductions for travel nurses include, but are not limited to, housing and meals, telephone and internet access, computer expenses, licensing fees, uniform costs, and malpractice insurance. If you’re keeping records of your expenses as recommended in step one, it will be easier to see what items may be tax deductible when filing.
- When in Doubt, Consult a Tax Professional
Here at CoreMedical Group, we pride ourselves on being professionals at providing travel nursing solutions to RNs and LPNs across the United States. While we are well-versed at providing you superior travel nursing contracts, housing, and benefits, we are not tax professionals. If you are ever unsure of anything during the traveling nurse tax filing process, we recommend consulting a tax professional.By using the above tips and tricks throughout the year, you will be organized and ready to file with ease come April. Your diligence in keeping records and receipts will directly translate to more deductions and savings for you, and will allow for a less stressful tax filing experience.
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