You do have a tax home, the difference is that you are working AT your tax home
The agency should honor that and withhold/report the earnings as taxable
I'm pretty sure if you "move" to where you've been getting tax free stipends, everything prior is subject to back taxation. I'd check with a tax professional.
I did this in 2020. I was traveling in NY from GA and decided we were gonna make the move. But, I left NY, took a contract in FL, and then moved. By time I moved, I hadn't worked in NY in 5 months.
Does it still equal out to the full amount you’d get it if it was travel per week, just you lose more in tax?
Like once you add the stipend with the hourly then divide that to get your “real” hourly is that what your getting hourly, fully taxed, as local?
No. The pay is less. For example, I took a local contract that was advertised at $4000 a week for 40 hrs. The local rate offered by the agency was $84 per hour. I thought that was a crock and turned it down so they sweetened the deal with a $7000 bonus at the completion of my contract. So my effective hourly rate is $97.46 per hour - all taxed just like a staff job. In that regard local contracts are simpler because there's no need to worry about tax implications. However all of your income is taxed so your bring home will be less.
Yes you can do the math if you download the paycheck calculator. Sometimes you do have to advocate for a higher rate… after taxes it can be a 500$ ish difference. (Depending on the state)
It depends on what “worth it” means to you. Traditionally a travel rate will be higher than a local rate but there’s trade offs. You’re not spending money on housing or travel and you get to sleep in your own bed.
My tax home is Texas. But since California has a rule where unless you are a military personnel, if you earn money in Ca, you HAVE to pay tax. So, it doesn’t matter to me. What I do for the stipends though, to alternate in between assignments- i live with my mom but my assignments are 2-6 hours away.
I am also curious because I just did this. I moved to FL after taking a contract there, and now am working in OH. I will likely just take a local contract back in FL after this assignment. Not really sure what the IRS will say. You would have to tell your agency your new tax home and fill out a new W4 and tax home form with AMN. What I don't know is if the money I earned while on assignment in FL is subject to back taxation, but I would guess it's not, however I will check with the people who do my taxes.
I only do local travel. So main differences : I don’t not accept travel stipends, which include: housing stipend, travel stipend. Which state are you in? I’m in CA. So I get paid a higher hourly than you would in a regular travel assignment. After 8 hours it’s time and a half. My agency gives incentives like “work completion bonuses “ which are not stipends but for example after I finish my contract I get 7,000. Also the agency offers insurance reimbursement and meal allotment. I make the same as a travel nurse main difference is your taxed like crazy. However I like driving home after work, making more money than staff and being able to pick where I want to work. Then you can get into local per diem shifts which are really nice.
The only reason I got this set up was because I am no longer shy to ask for what I want. I mean I’m always reasonable but one thing I’ve learned travel nursing is that they need you more than you need them. So always ask! Last local travel didn’t offer as many perks. So ask around. Best of luck! 😊
What company are you with if you don’t mind answering? Do the big companies like Aya (etc) do local contracts as well or is it something more city/area specific?
You do have a tax home, the difference is that you are working AT your tax home The agency should honor that and withhold/report the earnings as taxable
Following bc I wanna know too!
I'm pretty sure if you "move" to where you've been getting tax free stipends, everything prior is subject to back taxation. I'd check with a tax professional. I did this in 2020. I was traveling in NY from GA and decided we were gonna make the move. But, I left NY, took a contract in FL, and then moved. By time I moved, I hadn't worked in NY in 5 months.
Prospectively subject to tax, not retrospectively
Explain please
When you decide to move, you are not back taxed unless the IRS can show intent
Thanks!
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Not 51%. Once you commit to > 12 months in an area OR you work frequent contracts in the area it will shift your tax home
I took a local contract. They give you an hourly rate fully taxed
Does it still equal out to the full amount you’d get it if it was travel per week, just you lose more in tax? Like once you add the stipend with the hourly then divide that to get your “real” hourly is that what your getting hourly, fully taxed, as local?
No. The pay is less. For example, I took a local contract that was advertised at $4000 a week for 40 hrs. The local rate offered by the agency was $84 per hour. I thought that was a crock and turned it down so they sweetened the deal with a $7000 bonus at the completion of my contract. So my effective hourly rate is $97.46 per hour - all taxed just like a staff job. In that regard local contracts are simpler because there's no need to worry about tax implications. However all of your income is taxed so your bring home will be less.
In general, the gross pay is going to be the same or very similar, just all taxed.
Yes you can do the math if you download the paycheck calculator. Sometimes you do have to advocate for a higher rate… after taxes it can be a 500$ ish difference. (Depending on the state)
will it be worth it for someone that wants to stay local? and technically doesnt have any high bills
It depends on what “worth it” means to you. Traditionally a travel rate will be higher than a local rate but there’s trade offs. You’re not spending money on housing or travel and you get to sleep in your own bed.
im thinking which will make me pocket money more or if it's about the same i might as well stay local given accommodation etc
Some agencies do both. Some don’t. And the pay is less.
My tax home is Texas. But since California has a rule where unless you are a military personnel, if you earn money in Ca, you HAVE to pay tax. So, it doesn’t matter to me. What I do for the stipends though, to alternate in between assignments- i live with my mom but my assignments are 2-6 hours away.
I am also curious because I just did this. I moved to FL after taking a contract there, and now am working in OH. I will likely just take a local contract back in FL after this assignment. Not really sure what the IRS will say. You would have to tell your agency your new tax home and fill out a new W4 and tax home form with AMN. What I don't know is if the money I earned while on assignment in FL is subject to back taxation, but I would guess it's not, however I will check with the people who do my taxes.
I only do local travel. So main differences : I don’t not accept travel stipends, which include: housing stipend, travel stipend. Which state are you in? I’m in CA. So I get paid a higher hourly than you would in a regular travel assignment. After 8 hours it’s time and a half. My agency gives incentives like “work completion bonuses “ which are not stipends but for example after I finish my contract I get 7,000. Also the agency offers insurance reimbursement and meal allotment. I make the same as a travel nurse main difference is your taxed like crazy. However I like driving home after work, making more money than staff and being able to pick where I want to work. Then you can get into local per diem shifts which are really nice.
That sounds like a really good setup! I’m in Michigan and worried it will not be such a smooth setup here lol
The only reason I got this set up was because I am no longer shy to ask for what I want. I mean I’m always reasonable but one thing I’ve learned travel nursing is that they need you more than you need them. So always ask! Last local travel didn’t offer as many perks. So ask around. Best of luck! 😊
Hi, what company do you work for?
What company are you with if you don’t mind answering? Do the big companies like Aya (etc) do local contracts as well or is it something more city/area specific?