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Tax Law (Questions About Taxes)/Housing Allowance for Nursing

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Question
I'm a nurse working a 5 month contract with a hospital in Texas. The hospital is paying an hourly wage plus a monthly housing allowance. Should the housing allowance be tax free?

Thanks,
Ann

Answer
Hi Ann,

Travel nursing has many perks and a common question that I receive is “do I pay taxes on a housing allowance?".

To answer your question - yes, unfortunately housing allowances are taxable.

However, you may qualify for deductible travel expenses. Expenses for transportation, meals and lodging (housing) for a temporary assignment are deductible for a travel nurse while away from their tax home . To help you better understand when nurse travel tax deductions qualify, please read my article on Nurse Tax Deductions.

Best regards,
Randall

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Randall Brody, EA, MBA, CCP

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Tax Samaritan is a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the unique tax issues that apply to taxpayers that are gamblers, teachers, nurses and military.

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