Travel Nurse Employment Tax Advantages Of Per Diem Deductions

Travel Nurse Employment: Tax Advantages of​ Per Diem Deductions
When you​ are a​ travel nurse,​ then you​ need to​ have a​ pretty good understanding of​ per diem rates and how they might lower your taxes .​
Many travel nurses believe that per diem is​ only a​ tax benefit that staffing agencies offer and yet,​ surprisingly,​ others do not .​
This misunderstanding about what per diem is​ and how it​ may affect your taxes is​ an​ important financial issue that you​ need to​ understand .​
How you​ report your per diem earnings could mean the​ difference in​ thousands of​ dollars in​ tax savings.
Weather you​ are looking to​ maximize deductions,​ reduce taxes,​ or​ increase your returns,​ travel nurses should take the​ time to​ learn as​ much as​ possible about the​ IRS per diem tax rules .​
Certainly,​ one way to​ learn is​ to​ go to​ the​ IRS home page,​ download publication 1542 and read the​ rules so that you​ have a​ working idea of​ what to​ expect by tax time next year .​
Another great resource,​ especially,​ now a​ days is​ to​ do your taxes yourself,​ if​ you​ have a​ personal computer or​ laptop .​
Turbo Tax is​ a​ great software program .​
Not only is​ it​ inexpensive and tax deductible itself,​ but it​ is​ very easy to​ work when you​ use the​ step-by-step wizard .​
You can walk through your entire tax return,​ and file it​ electronically .​
You can get your refund deposited directly into your checking account in​ a​ matter of​ days.
A couple of​ travel expenses to​ have a​ heads up about include:
The travel nurse has a​ permanent tax home
The travel nurse takes a​ temporary (less than 12 months) assignment away
from their tax home
Any travel nurse meeting the​ requirements outlined by the​ IRS can claim deductions for certain travel expenses or​ receive tax free reimbursements and tax free per diem allowance payments .​
These tax benefits are one of​ the​ great perks of​ being a​ travel nurse.
Unfortunately,​ one of​ the​ most common tax mistakes that a​ travel nurse makes is​ not being educated or​ even aware of​ the​ tax advantages to​ per diem deductions .​
Now that you​ are are aware that savvy travel nurses are eligible for per diem deductions for every day that they are on​ temporary assignment away from their tax home,​ pass on​ the​ work to​ your co-workers,​ or​ email them this article so that they can bookmark this overview and take advantage of​ these tax benefits themselves.
It is​ important to​ be aware that some companies don't pay per diem allowance,​ pay too little per diem,​ or​ only pay per diem as​ a​ function of​ hourly pay .​
You can learn what these scenarios mean for you​ personal tax situation by consulting with a​ tax advisor or​ researching the​ IRS rules .​
You deserve to​ to​ get every dollar of​ per diem related deductions that you​ are entitled to,​ and we hope that this article has help you.
Note: while much care has been taken to​ make this article accurate,​ tax rules do change .​
Please be sure that you​ are up-to-date on​ the​ latest IRS rules .​
This article is​ meant for informational purposes only and is​ not meant to​ replace the​ advice of​ a​ skilled tax advisor.
Travel Nurse Employment Tax Advantages Of Per Diem Deductions Travel Nurse Employment Tax Advantages Of Per Diem Deductions Reviewed by Henda Yesti on July 05, 2018 Rating: 5

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