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Travel nursing is a great opportunity for nurses who want to experience new places and work environments while still pursuing their career. However, it can be overwhelming to navigate the rules and regulations that come with this type of work. One of the most important things to understand as a travel nurse is the 50 mile rule.
What is the 50 Mile Rule?
The 50 mile rule is a policy that affects travel nurses and their tax home. In order for a travel nurse to receive tax-free benefits such as housing and meal stipends, they must work at least 50 miles away from their tax home.
Your tax home is the place where you are permanently living and working. It’s important to establish a tax home before starting your travel nursing assignment, as this will determine your eligibility for tax-free benefits.
How Does the 50 Mile Rule Work?
Let’s say you live and work in Los Angeles, California. In order to qualify for tax-free benefits as a travel nurse, you would need to find an assignment that is at least 50 miles away from Los Angeles. This means that you could work in places like Santa Barbara, San Diego, or Palm Springs and still meet the 50 mile rule requirements.
However, if you were to take an assignment in Burbank, which is only 12 miles away from Los Angeles, you would not be eligible for tax-free benefits because you are not meeting the 50 mile rule.
Why is the 50 Mile Rule Important?
The 50 mile rule is important because it allows travel nurses to receive tax-free benefits that can significantly increase their take-home pay. Housing and meal stipends are not taxed, which means that travel nurses can save money on living expenses and have more money to spend on things they enjoy.
However, if you do not meet the 50 mile rule requirements, you may still be able to receive tax-free benefits through the “tax home” method. This method requires you to prove that you have a tax home in a different location than where you are currently working, and that you are maintaining that tax home while on assignment.
What Else Should You Know About the 50 Mile Rule?
Here are some frequently asked questions about the 50 mile rule:
| Question | Answer |
|---|---|
| Do I have to be 50 miles away from my tax home for the entire assignment? | No, you only need to meet the 50 mile rule requirements for at least one day during your assignment. |
| What if my tax home is in a different state? | The 50 mile rule still applies, but you may also need to follow state-specific tax laws. |
| What happens if I don’t meet the 50 mile rule requirements? | You may still be able to receive tax-free benefits through the “tax home” method, but you will need to prove that you have a tax home in a different location. |
Conclusion
The 50 mile rule is an important policy for travel nurses to understand. By meeting this requirement, travel nurses can receive tax-free benefits that can significantly increase their take-home pay. If you have any questions about the 50 mile rule or travel nursing in general, be sure to consult with a tax professional or travel nursing agency.