Are you a travel nurse looking to maximize your tax savings and increase your take-home pay? Look no further than per diem rates! A higher per diem rate can lead to greater tax savings and more money in your pocket. Here’s everything you need to know about finding the best per diem rates for your situation:
- Understand taxable vs. non-taxable per diem rates: Taxable per diem rates are subject to federal, state, and local taxes, while non-taxable per diem rates are not. Opting for non-taxable rates can lead to significant tax savings for travel nurses.
- Know your tax home: Your tax home is the area where you live and work, and is used to determine your eligibility for tax-free per diem rates. Understanding your tax home can help you choose the right per diem rates for your situation.
- Consider the cost of living: Per diem rates are typically higher in areas with a higher cost of living. However, taking a lower per diem rate in exchange for a higher hourly rate may be more advantageous in areas with a lower cost of living.
- Look for companies that offer tax-free per diem rates: Not all travel nursing companies offer tax-free per diem rates, so be sure to shop around and find a company that can help you maximize your tax savings.
- Keep detailed records of your expenses: To qualify for tax-free per diem rates, you must be able to prove that you incurred expenses while away from your tax home. Keep detailed records of your expenses, including receipts and mileage logs, to ensure that you can take advantage of all available tax deductions.
By following these tips, you can choose the best per diem rates for your situation and save on taxes as a travel nurse. Be sure to consult with a tax professional to ensure that you’re taking full advantage of all available tax deductions. With the right per diem rates and a little tax know-how, you can maximize your earnings and make the most of your travel nursing career.
Travel Nurse 2 Travel Nomad (TN2TN) 
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