Ever dreamed of the travel nurse pay without the constant packing? You might be surprised to learn that yes, travel nurses stay in one state all the time. This “local” travel nursing path offers a unique blend of high pay and regional stability. However, keeping your tax-free stipends legal while staying in one area requires navigating some complex rules. Let’s break down exactly how to make this career move work without running into trouble with the IRS.
Understanding the “Tax Home”: The Single Biggest Rule
To be a legitimate traveler, you must maintain a “tax home” distinct from your work location. Think of your tax home as your financial anchor—the place you return to when you aren’t working. If you work in the same state where you live, or fail to maintain a permanent residence elsewhere, the IRS considers you a local commuter. This means every dollar you earn is fully taxable, and you lose those precious housing stipends.
You must incur expenses maintaining this home to keep it valid.
Rent or mortgage payments, utility bills, and financial records prove it exists. Simply keeping a gym membership in another state won’t cut it. You need a genuine physical presence. The general rule of thumb is that you must duplicate your expenses; you pay for a home at your tax home and pay for housing near your contract.
Common Mistake: Thinking you can just rent a mailbox in another state and call it a tax home. The IRS looks for “physical abode” and financial intent. If you don’t sleep there occasionally or pay significant bills, you risk a costly audit.
Pro Tip: Always keep receipts for trips back to your tax home. Visiting home at least once a month is a good habit to demonstrate that your permanent residence is real.
Licensure: The Power of the Compact License
If you want to bounce between hospitals in one state, your license is your passport. The Nurse Licensure Compact (NLC) is a game-changer here. It allows you to hold one multistate license and practice in any other compact state without applying for extra paperwork.
Imagine living in Ohio (a Compact state) but taking contracts in Virginia (another Compact state). You don’t need a new license; you just pack and go.
However, if you want to work in a non-compact state, or if your permanent residence is in a non-compact state, things get trickier. You would need to apply for licensure by endorsement in that specific state. This process takes time and money, so factor that into your planning.
The Pros of Becoming a “Local” Travel Nurse
Why would you choose this lifestyle over cross-country adventures? For starters, the sheer stability is a massive relief. You aren’t spending your weekends driving U-Hauls across the country. You can actually join a gym, get a consistent primary care provider, and make friends who don’t leave in 13 weeks.
It’s also easier to explore a region deeply.
Instead of seeing nothing but the hospital and a hotel room, you can become a local regular. You discover the best coffee shops, hiking trails, and weekend getaways. Furthermore, your overheads are often lower. No flights, no cross-country gas, and less wear and tear on your vehicle means more money stays in your pocket.
The Cons and Potential Red Flags to Watch
It isn’t all sunshine and easy commutes. Agencies often pay less for local contracts because the “hardship” of moving isn’t there. You might find the hourly rate is slightly lower compared to a contract in rural Alaska or a critical need zone across the country.
There is also the risk of tax audits.
Working long-term in one location while claiming a tax home elsewhere is a major red flag for the IRS. You must be diligent about your documentation. Additionally, your job pool shrinks. You are limited to facilities within driving distance, rather than the entire nation. If your specialty is niche, you might run out of new hospitals to work in after a few contracts.
Comparison: Traditional vs. Local Travel Nursing
| Feature | Traditional Travel Nursing | Local / Single-State Travel Nursing |
|---|---|---|
| Pay Potential | Higher (due to hardship/isolation pay) | Moderate (often lower hourly/stipend) |
| Cost of Living | High (travel expenses, temporary lodging) | Lower (known area, no flights) |
| Social Stability | Low (new city every 13 weeks) | High (can maintain relationships) |
| Tax Risk | Moderate | High (requires strict tax home proof) |
| License Complexity | Moderate (need compact/multi-state) | Low (Single state usually suffices) |
| Best For | Adventurers, max earners | Those with roots, families, or regional preferences |
Winner/Best For:
- Choose Traditional if: You want to see the country and maximize tax-free stipend potential.
- Choose Local if: You have family ties, love a specific region, or want to avoid burnout from constant relocation.
How to Find Back-to-Back Contracts in One State
You need a recruiter who understands your specific goal. Not all agencies are set up for regional placements. Be upfront about your boundaries. Tell them you only want contracts within a 50-mile radius of your current base or a specific region.
Here is a quick checklist to get started:
- Define Your Radius: Decide how far you are willing to commute.
- Research Facilities: Use job boards to see which hospitals in your area use travelers.
- Network: Let unit managers know you are looking for local contracts; they often request travelers they know by name.
- Be Flexible: Consider shifts or units you might usually skip to keep local options open.
Clinical Pearl: Hospital managers often prefer “local” travelers because they have lower turnover costs and no relocation fees to pay. Highlight your knowledge of the local healthcare system during interviews.
Frequently Asked Questions (FAQ)
Can I work in my hometown as a travel nurse? Yes, but it is difficult to qualify for tax-free stipends if your tax home is in that same town. If you work at a facility within reasonable commuting distance of your permanent residence, the IRS generally views you as a local employee, meaning your housing stipend will be taxed.
How long can I stay in one state? You can stay indefinitely, provided you keep finding contracts. However, the IRS generally looks askance at staying in one work location for more than 12 months. If you stay at one hospital for a year or more, that location effectively becomes your tax home for the duration of your stay there.
Do I need a Compact License to stay in one state? Not necessarily. If you only plan to work in the state where your permanent license is issued, you are fine. If you want to work in a different state, you need either a Compact license (if your home state participates) or a single-state license for that working state.
Conclusion & Key Takeaways
Staying in one state as a travel nurse is a brilliant strategy for those craving stability without sacrificing pay. It all comes down to maintaining a legitimate tax home and securing the right licensure. Weigh the lifestyle benefits against potential pay differences to see if it fits your long-term goals. With the right planning, you can build a lucrative career rooted in a region you love.
Have you tried staying in one state for multiple contracts? Share your experience in the comments below—your insights could help a fellow nurse!
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