Have you heard about the travel nurse housing stipends or housing allowance that is often offered as part of your compensation package, but aren't sure what it covers or how to make the most out of it? You're in the right place.
We're here to explain everything you need to know about a travel nurse housing stipend, including who's eligible for travel nurse housing stipends, how much it could cover, and whether you should take the stipend or company housing.
A housing stipend is a tax-free allowance provided by a staffing agency to their travel nurses to cover the cost of housing while on assignment. The housing stipend amount is determined by a few factors, such as travel nurse's salary, geographic location, size of the needed apartment or house, and duration of the assignment.
This allows you the flexibility to choose where you want to live while on assignment. You can choose to pay rent on short-term furnished apartment leases, find extended hotel stays, or even share a house with other travel nurses.
If you choose the travel nurse housing stipend, you are not also eligible for agency provided housing. That amount comes out of the same part of the bill rate or compensation package.
Typically, stipends include the cost of rent, utilities, and basic furnishings. However, it's important to note that agencies offer different amounts, so you'll want to check what your specific agency reimburses.
While some travel nurse agencies may even provide additional perks like a gym membership or covered parking, others simply expect you to find your own lodging arrangements within the stipend amount.
For most agencies, the amount of the stipend varies depending on the location of your assignment, but it typically covers some or all of the cost of rent and utilities.
Much like the pay rate differs between travel nurse agencies, your stipend may be reflected differently between agencies — you may see it by week, as a monthly figure, or even a per diem lodging rate by day. Talk to your recruiter so you know what to expect.
Staffing agencies consider a travel nurse housing stipend part of travel nurses' overall pay packages. The money you are offered as a housing stipend comes out of the bill rate — the hourly rate the facility agrees to with your agency. Agencies cannot change the total bill rate, although they may be able to shuffle around the pieces that make it up. The housing stipend is just one piece of the puzzle.
Because this housing stipend counts as more non taxable income as long as you have a permanent address, most travel nurses typically opt for the tax free stipends to maximize pay instead of choosing to accept agency-provided housing.
It can be significantly more convenient if your travel nursing agency offers housing arrangements; they can find and book accommodations in the area of your assignment so you don't have to, and there is some added security that they have the knowledge and connections to choose a safe neighborhood for agency-provided housing.
However, choosing agency-provided housing also means that you're limited by their options and do not have the same level of control you'd have if you chose your own living arrangement.
There's a great park or coffee shop you were looking forward to walking to on the way to your travel assignment? Just cross your fingers you aren't staying on the opposite side of town.
Of course, one of the biggest benefits to choosing the stipend is the level of flexibility you have over your own housing. You have complete control over your living situation, amenities, and area while you're in a new location for your travel nursing assignment.
If you need pet-friendly housing, disability access, or you want a view of the mountains from your bedroom, you'll have an easier time if you book it yourself, even if it takes a few days to find the perfect spot.
But the best benefit to the housing stipend for travel nurses is actually that it usually puts you at a financial advantage. If you choose a more affordable place to stay, you're able to pocket the difference instead of choosing a higher taxable wage.
Staffing agencies are usually happy to pay housing stipends, because they know it often means that you'll bring home more money at the end of the day.
Housing stipends are the responsibility of the General Service Administration (GSA), which has declares "the maximum allowances that federal employees are reimbursed for expenses incurred" while traveling.
There are three expense categories defined in these guidelines - meals, incidentals, and housing, which vary depending on the average cost in that specific location.
Travel nurses aren't federal employees, but the IRS uses the same rates for everyone, so travel nurse housing stipends end up following the same rules as a federal employee would. The stipend rates declared by the GSA are the maximum that an employer can offer as part of your pay package, but they are not required to pay that entire amount for your housing stipend (or for agency provided housing).
As a travel nurse, receiving a generous housing stipend can be one of the many perks that come with the job. However, it's important to understand how this payment can affect your taxes.
Some travel nurses are always on the road, to the point that they have no permanent address. These travel nurses are not eligible for the non-taxable housing stipend. If you are expecting this additional money to be tax free, you must:
Have a tax home (more on this below).
Travel far enough from your home that you must stay in a new location overnight (often considered a 50-mile rule, although that number is an estimate).
Spend additional money on housing during your assignment (so staying with family members in the area for free instead of paying to stay in apartments or extended stay hotels would mean you are not eligible).
Travel nurses should keep receipts showing how they chose to secure housing for all their contracts to be ready when tax season rolls around.
A tax home refers to your primary place of business or employment, or the location where you conduct the majority of your work and earn the majority of your income.
The IRS explains that this can be either "the entire city" or "general area" where you work, "regardless of where you maintain your family home," or permanent residence. You do not need to own a home in order to have a tax home
If you don't have a typical working situation (and travel nursing is not typical for most people doing their taxes), the IRS will check to see if you meet at least two of the three following items, even if you do have a permanent residence:
Do you ever live and work in that area?
Do you have living expenses that must be duplicated when you are traveling for business and away from that home?
Do you have some sort of connection to the area? Family, friends, community, belongings still at that address or in the neighborhood?
Be careful with these items — renting out the entirety of your home for too long while on a travel job might cause the IRS to label it a business or commercial property, which would disqualify it from being a tax home. (You can still rent out part of it and remain eligible for the housing stipend, though.)
You can also show the IRS that your tax home is not a scam by showing your lodging expenses, paying taxes and using that address on your returns, being registered to vote there, and having family who stays there.
In order to make sure that your carefully laid plans go according to plan once you've got your tax home established, you'll also want to make sure that you don't extend travel nurse contracts too long for fear of missing out on the housing stipend (although that isn't a problem if you watch out for how long you stay).
Since the travel nurse housing stipend is for travelers who are working elsewhere temporarily, the housing reimbursement is only tax free if you aren't there too long.
The IRS says, "Any work assignment in excess of one year is considered indefinite," which disqualifies you from tax free stipends.
If a travel nurse stays at one location for over a year, your tax home will likely change to reflect that new location, which will create issues with how you pay taxes and find housing to reflect your entire pay package. Most agencies are happy to help you find a new assignment elsewhere to avoid this pain.
One question that often comes up for traveling nurses is whether they will receive housing stipends when they are not on an assignment. The answer is no, travel nurses will not receive housing stipends when they are not on an assignment and incurring duplicate housing expenses.
When you're hitting the road as a travel nurse, you want to make the most out of your entire pay package - including your travel nurse housing stipend. Be smart and strategic when it comes to finding and selecting your travel nurse housing.
One of the best tips for maximizing your travel nurse housing stipend is to think outside the box - consider options such as extended stay hotels or furnished apartments, which may offer more affordable rates than traditional short-term rentals.
There are plenty of travel nurse housing sites with helpful ideas, and travelers who use Marketplace can use Furnished Finder to discover options near their assignments — it's integrated into our job search to make it easier for you.
Research the location you will be working in to find housing that fits within the travel nursing housing stipend amount, and negotiate with property managers or renters when possible— you may even be able to score a lower rate or added amenities like free parking, laundry services, free utilities, or internet.
Prioritize your safety and security by researching the neighborhood and checking for amenities like gated entrances or security cameras.
Although travel nurse housing costs can make it seem like the most affordable options are best in order to pocket the most tax free housing money, you'll want to make sure that you actually enjoy your travel assignment. Pick an area that's nice as well as finding deals to save money.
Additionally, consider the proximity to the healthcare facility where you'll be working, as well as nearby attractions and restaurants.
When it comes to travel nursing, understanding the nuances of housing costs and stipends is essential. By knowing how suitable housing stipends are determined and how to make the most of them, traveling nurses can make informed decisions and enjoy a successful assignment.
If you have more questions about your housing stipend, bill rate, or agency housing, speak with your recruiter, since the answer will vary by traveler and by each staffing agency.
For overall questions regarding a housing stipend or the way that housing reimbursements impact your taxes, speak to a tax professional. Marketplace is here to empower you as a healthcare traveler, not to give tax advice. We'll be here whenever you're ready!