Quick answer
What a travel nurse can deduct depends on one question: are you a W-2 employee of an agency or a 1099 independent contractor?
- W-2 travel nurses (most agency nurses) can’t deduct unreimbursed work expenses on their federal return. That rule, suspended since 2018, was made permanent in 2025. Your main tax benefit is tax-free stipends, which require a real tax home.
- 1099 travel nurses are self-employed. They can deduct travel, lodging, meals, licenses, CEUs, scrubs and more on Schedule C, and they pay self-employment tax.
The tax home rule
Your tax home is your regular place of business, usually where you earn most of your income or where you’d return between assignments. Travel away from it is what makes housing and meal stipends (W-2) or travel deductions (1099) tax-free or deductible.
The IRS looks at three factors:
- You do part of your work in the area of your main home and use that home for lodging while working there.
- You have duplicated living expenses: you keep paying for your main home (rent or mortgage, utilities) while on assignment.
- You haven’t abandoned the area: your family lives there, or you return to it often, and you keep your license, voter registration, vehicle and bank there.
Meet all three and you have a tax home. Meet two and it depends on the facts. Meet fewer and you’re an itinerant: your tax home is wherever you work, so stipends become taxable and travel isn’t deductible.
Red flags: listing your parents’ address without paying them rent, never going back between contracts, or renting out your home while on assignment.
The one-year rule
An assignment in one location expected to last more than one year is treated as indefinite. The new location becomes your tax home, and stipends there are taxable. Extending a contract so it’s realistically expected to go past 12 months triggers the same result.
W-2 travel nurses: what still helps
- Tax-free stipends for housing, meals and incidentals, if you have a tax home and your agency pays them under an accountable plan.
- Some states still allow unreimbursed employee expenses on the state return (for example, California, New York, Pennsylvania). Check your state.
- HSA and retirement contributions through the agency’s plan.
- Scrubs and licenses aren’t federally deductible for W-2 employees, but ask your agency whether it reimburses them tax-free.
1099 travel nurses: what you can deduct
| Expense | Deductible |
|---|---|
| Travel to and from assignments (airfare, mileage at 72.5¢/76¢ in 2026) | 100% |
| Lodging while away from your tax home | 100% |
| Meals while away | 50% of actual, or 50% of the GSA meal rate |
| Nursing licenses, compact license, renewals | 100% |
| CEUs, certifications (BLS, ACLS, PALS) | 100% |
| Scrubs, compression socks, stethoscope, shoes worn only at work | 100% |
| Professional liability insurance | 100% |
| Association dues (ANA, specialty groups) | 100% |
| Phone and internet | Business % |
| Background checks, drug tests, immunizations required for contracts | 100% |
| Tax prep and bookkeeping | 100% |
Using per diem for meals
Self-employed nurses can use the GSA meals and incidentals rate instead of keeping every food receipt. The standard rate for fiscal year 2026 (October 2025 to September 2026) is $68 a day, and higher in many cities. You then deduct 50% of it. Lodging must always be deducted at actual cost, with receipts. The GSA standard lodging rate ($110 a night in FY2026) is what many agencies use to set tax-free housing stipends, but it isn’t a deduction for self-employed nurses.
Worked example (1099 nurse)
Jess keeps her apartment in Ohio and takes two 13-week contracts in Arizona in 2026. She earns $95,000 as a contractor.
| Expense | Amount |
|---|---|
| Short-term housing (26 weeks) | $15,600 |
| Flights and drives between assignments | $1,400 |
| Meals: 182 days × $68 × 50% | $6,188 |
| Licenses, compact and certifications | $850 |
| Scrubs and work shoes | $400 |
| Liability insurance | $300 |
| Total | $24,738 |
Her Ohio rent keeps her tax home there, so these are legitimate. The deductions save her about $8,900 in income and self-employment tax.
Keep the right records
- Your lease or mortgage statements and utility bills for your tax home.
- Contracts showing dates and locations.
- Lodging receipts and travel records.
- Proof of ties: driver’s license, voter registration, car registration.
Frequently asked questions
Are travel nurse stipends taxable?
Not if you have a genuine tax home you’re duplicating and your agency pays them under an accountable plan. If you’re itinerant, they’re taxable income.
Can W-2 travel nurses deduct mileage?
Not on the federal return. Some states still allow it.
Can I rent out my home while on assignment?
You can, but if you’re not paying to maintain it, you may lose your tax home.
Do I need to pay quarterly taxes as a 1099 nurse?
Usually yes. See Quarterly Estimated Taxes: Due Dates and How to Calculate Them.
This article is general information, not tax advice. Consult a CPA or Enrolled Agent for your situation.
Related guides
- Tax Deductions for Photographers
- Tax Deductions for Hair Stylists and Barbers
- Self-Employed Tax Deductions: The Complete List (2026)
- Home Office Deduction: Simplified vs Regular Method
About this guide
Written by the Freelancer Tax HQ editorial team, based on our professional experience, official US government sources (IRS, SSA and other agencies) and reputable informational articles listed in the sources below. Last reviewed on . Tax rules change often, and we update this guide when they do. Read our editorial policy or report an error.
Sources
IRS Publication 463, Travel, Gift and Car Expenses (tax home, one-year rule, per diem); GSA Per Diem Bulletin FTR 26-01; IRS Publication 334; IRS 2026 standard mileage rate. Example figures are FreelancerTaxHQ illustrations.
Official resources linked in this guide: IRS: Self-Employment Tax; IRS: Tax preparer credentials.