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    #1

    Traveling nurse questions

    I have a client who's decided to try out travel nursing. She owns and lives in a home in Minnesota. She plans on keeping her regular job as an RN at a local hospital. Starting in May she'll travel to another state, say Oklahoma, and live and work at a hospital there for 3 months. Keep in mind that her regular pay at her job in MN is about $30 per hour. While she's traveling, she'll be paid $11 per hour and also a $700 weekly "stipend". The stipend is supposed to be tax free and will cover her living expenses such as rent/food. The only way she can receive this stipend is if she maintains her current home in MN, which she will. Her sister/bro-in-law currently live with her and will take care of the house while she is gone.

    After that 3 months time, she'll come back to MN and work at the hospital for a month. She'll then leave again to another state for 3 months. She plans to do this cycle of 1 month here, 3 months gone for some time until she feels ready to come back here and work permanently. This is just something for her to try out and get around to see some different places.

    Now, is there anything I should watch out for when it comes to preparing her income taxes for next year? Any tax planning that should be done? I'm assuming her "tax home" will remain her MN home. She's also a childhood friend of mine and I want to be sure I'm not missing something here.

    Any thoughts? Thanks in advance!
    ~Becky
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    #2
    What expenses would she maintain in MN while out of the state?

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      #3
      Actually a lot......

      because she'll continue to pay her mortgage payment and insurance, but her sister and bro-in-law will pay the utilities (and take care of her two kitties). Up until this point, her roommates have not paid rent because they are young and just starting out, and well.....my friend is a softy and wants to help them till they can get a house of their own. So she did tell them they'll have to kick it up a notch and take care of the utilities while she's gone.

      Any thoughts?

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        #4
        On the surface, it seems her situation would be analogous to situation 1 in Revenue Ruling 93-86 in that the out of state assignments are temporary.

        I am curious about the "stipend" being tax free.
        Last edited by solomon; 01-25-2009, 04:58 PM. Reason: addition

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