You’ve heard the number tossed around in break rooms and on online forums: 50 miles. It’s the magic mileage that supposedly transforms your regular nursing job into a “travel” contract, unlocking those coveted tax-free stipends. But is it true? Is there an official rule, and more importantly, what does it mean for your next job opportunity? Understanding how many miles is considered travel nursing is crucial for your career and your wallet. This guide will cut through the confusion and give you the definitive answer you need, moving beyond the myths to the facts that actually determine your pay and tax status.
The Short Answer: Is There a Magic Mileage Number?
Let’s get right to it. No, there is no federal law or IRS regulation that specifies a mileage requirement for travel nursing. That’s right, the “50-mile rule” is not a rule at all—it’s a myth. The real determining factor isn’t a specific number of miles on your car’s odometer. Instead, the IRS’s concept of a “tax home” is the true gatekeeper for whether you qualify as a traveler eligible for tax-free benefits.
Clinical Pearl: Repeat after me: “It’s not about the miles; it’s about my tax home.” This simple shift in thinking is the key to understanding travel nurse pay packages.
The 50-mile benchmark you hear about is simply an industry-standard guideline that most travel nursing agencies use. It’s a practical tool, not a legal requirement, designed to help substantiate that you are truly traveling away from your main area of work. But the foundation of everything rests on the tax home.
Decoding the “Tax Home”: The True Rule for Travel Nurses
So, what exactly is a tax home? The IRS defines it as your main place of business, work, or post of duty, regardless of where you maintain your family home. If you have more than one place of business, your tax home is generally where you spend the most time and earn the most money.
Think of it like this: your tax home is your professional headquarters, not necessarily your personal residence.
Consider these two scenarios:
Scenario 1: Sarah the Established Nurse Sarah works full-time at a hospital in Austin, Texas. She decides to take a 13-week travel contract in San Diego. Her main place of business and source of income is still her permanent job in Austin, even if she doesn’t work PRN shifts while she’s away. Austin is her tax home. Because she is traveling away from her tax home to work in San Diego, she is eligible for tax-free stipends to cover her lodging and meals in San Diego.
Scenario 2: Alex the New Graduate Traveler Alex just graduated and has never held a permanent nursing job. His only work is the travel contracts he takes. He takes a job in Phoenix for three months, then another in Denver. In this case, Alex does not have a tax home. The city where he is currently working (Phoenix, then Denver) becomes his tax home for the duration of that assignment. This means his entire wages for that assignment are taxable as ordinary income; he cannot receive tax-free stipends because he is not traveling “away from home”—he is at his home for tax purposes.
Pro Tip: To maintain a valid tax home while traveling, you must regularly work or earn income in that area. Simply maintaining an apartment there is often not enough. Working a PRN job or per-diem shifts at least once a month is a common way to satisfy this requirement.
The 50-Mile Rule: Industry Guideline, Not Law
Okay, so if it’s all about the tax home, why does everyone talk about 50 miles?
Here’s the thing: the IRS requires that your travel assignment be “substantially longer than an ordinary day’s work” and require “sleep or rest” to meet the criteria for away-from-home expenses. The 50-mile rule is the travel industry’s unofficial-but-universal way of proving that a daily commute is unreasonable.
If an assignment is only 30 miles from your tax home, it’s very easy for an auditor to argue you could just commute daily. But if the job is 200 miles away, it’s undeniable that you need temporary lodging. The distance helps justify the need for the stipend.
Common Mistake: Assuming that any job over 50 miles automatically qualifies you for tax-free money. If you don’t have a legitimate tax home to be “away from,” the distance is irrelevant. A 500-mile assignment doesn’t make you a traveler if your tax home is a backpack.
How Distance Determines Your Pay: The Connection to Tax-Free Stipends
This is where the rubber meets the road. Being “away from your tax home” is what makes you eligible for the financial benefits that make travel nursing so attractive. Your pay package is typically broken into two parts:
- Taxable Hourly Rate: The base pay for your nursing skills. This is fully taxed.
- Tax-Free Stipends: Payments to cover meals, housing, and incidental expenses. These are not taxed as long as you qualify by being away from your tax home.
The further an assignment is from your tax home, and the higher the cost of living in that new location, the larger those stipends might be. An agency wouldn’t offer a housing stipend for a job across town because you don’t need temporary housing. They offer it for a job across the state because you do.
| Pay Component | Local Contract (Near Tax Home) | Travel Contract (Away from Tax Home) | Winner/Best For |
|---|---|---|---|
| Base Rate | Higher ($45-$65/hr) | Lower ($20-$30/hr) | Travel: Lower taxable income. |
| Housing | N/A (You commute) | Tax-Free Stipend (e.g., $1,500/mo) | Travel: Major tax advantage. |
| M&IE | N/A | Tax-Free Stipend (e.g., $50/day) | Travel: Covers daily expenses. |
| Total Take-Home | Equivalent | Equivalent (or slightly higher) | Travel: Higher net pay due to tax-free portion. |
Summary: The total value might be similar, but the travel contract allows you to keep more of it because a significant portion is tax-free.
Agency Variations and Contractual Red Flags
While the tax home rule is universal, how agencies apply the 50-mile guideline can vary slightly.
- Check Your Contract: Your contract should state the assignment location and your permanent address (your tax home). It may explicitly state that the assignment is outside a certain radius (e.g., “greater than 50 miles”) to justify the travel status.
- Ask Your Recruiter: Have a direct conversation. Ask them, “Based on my permanent work history, can you confirm that I qualify as a traveler for tax purposes on this assignment?”
- Beware of “Local Travel” Contracts: Some agencies offer “local travel” or “commuter contracts” for jobs under 50 miles. These contracts almost always have the stipends rolled into a fully taxable hourly rate. They can be great for local experience, but don’t mistake them for true travel contracts.
Use this quick checklist before you sign:
- [ ] Have I confirmed my tax home with a tax professional?
- [ ] Is this assignment location a reasonable distance from my tax home?
- [ ] Does my contract clearly separate taxable hourly pay from non-taxed stipends?
- [ ] Have I asked my recruiter for explicit confirmation of my travel status?
FAQ: Your Top Questions About Travel Nursing Distance
Let’s tackle some of the most common follow-up questions we hear.
Can I take a travel nursing assignment in my hometown? Yes, but you likely won’t qualify for tax-free stipends. Since you are not “away from your tax home,” the agency would need to pay you a fully taxable hourly rate for the entire job. It would essentially be a local contract, possibly through a travel agency.
What if I don’t have a tax home? Can I still be a travel nurse? Absolutely! Many new travelers start this way. You’ll take assignments, and your entire compensation package will be taxed. You’re building a financial foundation and gaining experience. After a year or two, you can establish a permanent tax home (by getting a permanent PRN job somewhere) and then begin qualifying for the tax-free benefits on future contracts.
So, is it ever okay to take a contract under 50 miles and still get stipends? This is the gray area. Generally, no. The IRS wants to see that it’s impractical for you to commute. Some agencies might bend to 40-45 miles in an area with horrific traffic, but you’re treading on thin ice. It’s often not worth the audit risk for a few extra dollars.
Conclusion & Key Takeaways
Understanding how many miles is considered travel nursing boils down to three critical concepts, not one magic number. First, there is no legal mileage rule. The single most important factor is your IRS-defined tax home—your main place of business. The “50-mile rule” is simply a common industry guideline used to prove a daily commute is unreasonable, helping to justify your need for tax-free stipends. Always review your contract carefully and do not hesitate to consult a tax professional who specializes in healthcare travelers to protect yourself and your finances. Armed with this knowledge, you can confidently navigate your travel nursing career.
What’s the distance of your current or last travel contract? Share your experience and how your agency handled it in the comments below!
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