If you're a travel nurse then you need to have at least a basic understanding of per diem rates and how they might lower your taxes. Many travelers believe that per diem is nothing more than a tax benefit that some staffing agencies offer and yet, mysteriously, others don't. If offering tax free money were a simple matter, then all companies would do it, believe me.
Travel nurses looking to maximize deductions (and reduce taxes) should take the time to learn as much as possible about per diem. The best way for any travel nurse to learn the basics of per diem rates and corresponding deductions is to read the IRS publications that explain very clearly the ins and outs of travel deductions.
Whenever a travel nurse goes out on an assignment, there are a number of travel expenses that are potentially deductible. A travel nurse can usually deduct these expenses if:
Any travel nurse meeting the requirements put forth by the IRS can claim deductions for certain travel expenses or receive tax free reimbursements and tax free per diem allowance payments.
One of the most common tax mistakes that a travel nurse can make is to shortchange herself when it comes to per diem deductions. Savvy accountants will advise healthcare travelers that they are eligible for per diem deductions for every day that they are on temporary assignment away from their tax home.
Yet some companies either don't pay per diem allowance, pay too little per diem, or only pay per diem as a function of hourly pay... thereby shortchanging travel nurses several hundred dollars in tax free allowance. Accountants experienced with the travel nurse industry will know how to help healthcare travelers get every dollar of per diem related deductions they are entitled to.
In case this is confusing, don't worry. Travel Nurse Depot has a special Per Diem Calculator that can help any travel nurse estimate the approximate per diem deductions they are entitled to.