Healthcare Traveler - June 2008 - (Page 55)

 Tax Facts I S S U E S A N D A N S W E R S F O R T R AV E L E R S Are moving expenses the same as traveling expenses? Joseph Smith hen taking new assignments, healthcare travelers occasionally refer to the event as a “move” or “relocation.” From both a legal standpoint and tax perspective, if a mobile provider maintains a tax home, neither is the case. To move or relocate, you must sever ties to your former residence. If you have a tax home, you’re not doing either of these things. Rather, you are simply “away from home,” completing a short-term contract and taking a temporary leave of absence from your permanent residence to do so. And you have every intention of returning. W Avoiding a mix-up Confusion can ensue when travelers and their tax professionals erroneously report travel expenses as moving expenditures. The costs associated with moving would be deductible only if you intended to permanently practice and live in a new community. Absent certain waivers, you would have to work in the new area a minimum of 39 weeks to qualify. Claiming moving expenses on a tax return would contradict the assertion of being “away from home.” Likewise, a staffing agency that calls travel pay a “relocation allowance” or “moving allowance” creates a conflict with its reimbursement policy if it is also providing “away from home” lodging for an employee with a tax home. All travel, lodging, and meal allowances are taxable— including the fair market rental value of any provided housing—if you do not have a tax home. In this case, you are moving because you’re going from one contract to the next. So, if you stay at each new assignment location for 39 weeks—or 9 months—you can deduct moving expenses on your tax return, less any reimbursements. HT References to this article can be found online at www.HealthcareTraveler.com. Any tax advice contained is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. Joseph Smith, RRT, EA, is an enrolled agent and owner of TravelTax LLC (TravelTax.com), based in Norfolk, Nebraska. Circle Career Card No. 609 June 2008 Healthcare Traveler Circle Career Card No. 606 55 http://www.baycarejobs.com http://www.baycare.org/mobilepool http://www.baycarejobs.com http://www.HealthcareTraveler.com http://www.cirrusmedicalstaffing.com http://www.cirrusmedicalstaffing.com http://www.traveltax.com

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Healthcare Traveler - June 2008 Editor's Desk Contents In a Flash Paws for Thought Field Notes You Said It Cover Story: Day Trippin' A Matter of Choice Clinical Highlights Drug Update When In... On Assignment Name It Advertisers' Index Travel Tips Tax Facts Big Deals Contest Rules Going the Distance Starter's Kit Allied Corner Classifieds Tales from the Road

Healthcare Traveler - June 2008

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