When winter starts to lose its chill and the holidays are far behind us, you know it’s time to start thinking about your taxes. If you’re a travel nurse, tax season means you have a little more to think about than most people so it’s even more important that you have an organized approach each year. With this simple checklist from Onward Healthcare designed especially for travel nurses, you’ll be prepared to coast through the tax season with ease.
1) Work with a Tax Advisor.
While you’ll receive unparalleled support when you’re working with Onward Healthcare, it’s always best to seek tax advice from a tax professional. They offer guidance based on your individual situation which is the best way to approach your taxes. If you’re not connected with a tax advisor already, check out the recommendations at the bottom of the Onward Healthcare Travel Nursing FAQs.
2) Ask if reimbursements are negotiable as tax-free.
Along with other negotiable elements in your assignment contracts, you may be able to negotiate terms that make your reimbursements tax-free. It never hurts to ask and you might end up with housing, travel and personal expense reimbursements that aren’t treated as taxable income.
3) Understand how your home state taxes work.
It’s best to ask exactly how your home state will tax your income since you’ll be earning it in many different locations. Questions like this are great to bring up with your tax advisor so you can both arrive at a tax strategy that works best for you.
4) Keep your records organized.
There’s nothing worse than needing a copy of an important document and not having it. Considering all the different contracts, expenses and trips you’ll amass over a given year, keeping all those records organized along the way will make them easier to review and provide to others if needed.
5) Be prepared to survive an audit.
An IRS audit doesn’t necessarily mean you’ve committed fraud or some egregious crime. Travel nurses are often audited simply because of the nature of their claims and tax situations and because IRS audits are on the rise for all professions. The trick to surviving an audit is remaining cool and having all your records and documents in order. With the help of your tax advisor and a well maintained set of records, you’ll get through the audit with no trouble and find yourself wiser from the experience.
With all the wonderful opportunities and experiences that come from a career in travel nursing, don’t let the annual tax season trip you up! Be prepared, stay organized, and if you have questions, don’t hesitate to contact your Onward Healthcare representative for help.