Top 12 Tax Deductions for Travel Nurses in 2025

Why Travel Nurse Taxes Are Different

Unlike staff nurses who work at one facility year-round, travel nurses maintain a tax home, work temporary assignments across multiple states, and incur expenses that the IRS considers deductible business costs. Whether you're a W-2 employee through an agency or working as a 1099 independent contractor, understanding these deductions can save you thousands every year.

The key distinction is your "tax home" — the city where your permanent residence is. When you travel away from your tax home for work assignments, many of your living and working expenses become deductible. Let's walk through all 12 categories.

1. Uniforms and Scrubs

Scrubs, lab coats, and other work-specific clothing that isn't suitable for everyday wear are deductible. This includes the cost of purchasing, cleaning, and maintaining your uniforms. If your facility requires specific colors or styles, keep the receipts.

• • Scrubs (tops and bottoms)
• • Compression socks and stockings
• • Non-slip work shoes
• • Lab coats and jackets
• • Stethoscope covers and badge reels
• • Laundering costs for uniforms

Typical annual spend: $300–$800. Every receipt matters because this category adds up fast across multiple assignments.

2. Licensing and Certifications

State nursing license fees, compact license costs, ACLS/BLS/PALS certifications, specialty certifications, and continuing education credits are all deductible. If you hold licenses in multiple states for travel assignments, each renewal counts.

• • RN/LPN state license renewals
• • Nurse Licensure Compact (NLC) fees
• • ACLS, BLS, PALS certification courses
• • Specialty certifications (CCRN, CEN, etc.)
• • Continuing education (CE) courses and conferences
• • Background checks and drug screenings required by facilities

Typical annual spend: $500–$2,000+ depending on how many states you work in.

3. Travel and Transportation

The cost of getting to and from your assignment locations is deductible. This includes flights, gas, rental cars, tolls, and parking at the airport or facility. The IRS lets you choose between the standard mileage rate (67 cents per mile in 2025) or actual vehicle expenses.

Important: Your daily commute from your temporary housing to the facility is generally NOT deductible. But the trip from your tax home to the assignment city — and back — absolutely is.

4. Housing and Rent

If you maintain a tax home and pay for temporary housing at your assignment location, those housing costs are deductible. This includes rent, utilities, renter's insurance, and even furniture rentals. Many agencies provide housing stipends — the deduction comes into play when your actual costs differ from the stipend.

Typical costs: $1,000–$3,000/month depending on location. Your housing stipend may or may not cover this fully.

5. Meals and Per Diem

When you're away from your tax home on assignment, meal costs are deductible. You can either track actual meal expenses (keeping every receipt) or use the GSA per diem rates for your assignment location. Most travel nurses find the per diem method simpler and often more advantageous.

Under the per diem method, you use the federal per diem rate for your city and deduct the meals portion (typically $59–$79/day depending on location). The IRS allows you to deduct meals at 80% of the per diem rate if you're in the transportation industry, which some travel nurses qualify for.

6. Continuing Education

Any education that maintains or improves your nursing skills is deductible. This includes online courses, conference registrations, textbooks, and professional journal subscriptions. Travel to conferences can also be deducted.

• • Online CE courses
• • Nursing conference registration fees
• • Travel to conferences (flights, hotels, meals)
• • Textbooks and professional publications
• • Professional journal subscriptions
• • Webinar and workshop fees

7. Professional Memberships

Dues for professional nursing organizations are deductible. This includes the American Nurses Association (ANA), state nursing associations, specialty organizations like AACN or ENA, and union dues if applicable.

8. Medical Supplies and Equipment

If you purchase your own medical supplies — stethoscope, trauma shears, penlight, hemostats, reference books — these are deductible as unreimbursed business expenses. Keep receipts for everything.

• • Stethoscope and stethoscope accessories
• • Trauma shears, penlights, hemostats
• • Medical reference books and apps
• • Personal protective equipment (PPE) not provided
• • Nursing bags and supply organizers

9. Phone and Internet

The business-use portion of your cell phone and internet is deductible. If you use your phone 60% for work (calling agencies, checking schedules, communicating with facilities), you can deduct 60% of your phone bill. Same for internet in your temporary housing.

10. Insurance Premiums

If you pay for your own health insurance (not provided by your agency), premiums may be deductible. Malpractice insurance and professional liability insurance premiums are also deductible as business expenses.

• • Health insurance premiums (if self-paid)
• • Malpractice/professional liability insurance
• • Renter's insurance for temporary housing
• • Disability insurance related to nursing career

11. Tax Preparation Fees

The cost of having a CPA or tax professional prepare your taxes is deductible — and travel nurse returns are often complex enough to justify professional help. This includes the cost of tax software if you file yourself.

12. Miscellaneous Work Expenses

Don't forget the smaller expenses that add up: resume printing, passport photos for facility badges, parking at interviews, postage for mailing documents, and storage fees for your belongings while on assignment.

• • Resume printing and job search expenses
• • Facility badge photos
• • Storage unit for belongings during assignments
• • Work-related postage and shipping
• • Professional portfolio costs

How to Track All 12 Deduction Categories

The biggest mistake travel nurses make is not tracking expenses in real time. A shoebox of receipts at the end of the year means lost deductions and audit anxiety. The smartest approach is to log each expense as it happens, attach the receipt photo, and tag it to the right assignment.

ShiftDeduct was built specifically for this workflow. Each expense category in the app maps to a deduction category on your tax return. When filing season arrives, you export a clean, organized summary — whether you give it to a CPA or file yourself.