There are so many great perks to being a travel nurse, and one of those amazing benefits is the opportunity to receive stipends that help cover the cost of living while on assignment. But what exactly are housing and meal stipends and how do they work? Whether you’re a seasoned traveler or just getting started, understanding your stipends is crucial to making the most of your travel nursing career. In this guide, we’ll break down everything you need to know about travel nursing stipends, so you can make sure you’re maximizing your earnings and your experience as a traveler!
What is a Travel Nurse Housing Stipend?
A housing stipend is a non-taxable allowance that travel nurses are eligible to use to cover lodging and utilities while on assignment. Travel nurse agencies like Medical Solutions will offer either agency-provided housing or a housing stipend for nurses who choose to find their own accommodations. Many RN’s opt for a housing stipend instead of agency-provided housing because it gives more flexibility in picking out accommodations that fit your preferences, and potentially help you save money if you find affordable housing options less than the stipend amount. It’s also important to emphasize that the housing stipend is only given to travel nurses who don’t use housing provided by the agency.
How Do Travel Nurse Housing Stipends Work?
As part of the U.S. General Services Administration (GSA) regulations for traveling employees, you’ll get an allotted amount of money that will help you cover the cost of accommodation that you choose. A travel nurse housing stipend is based on the location of your assignment, so the amount you receive for an assignment in California will most likely not be the same for one in Nebraska. To qualify for a housing stipend, a travel nurse must maintain a tax home, which is a permanent residence where they have duplicate expenses. If a nurse does not have a tax home, their stipend may be considered taxable income.
What is a Meal and Incidentals Travel Nurse Stipend?
A meal and incidentals travel nurse stipend is non-taxable allowance provided to help cover daily food expenses and minor personal costs while on assignment. This stipend is meant to account for the additional costs of eating out, groceries, and incidental expenses such as laundry, transportation within the assignment location, and small necessities.
How Do Meal and Incidental Travel Nurse Stipends Work?
The meal and incidental expense stipend is typically included in a travel nurse’s compensation package to help cover food and minor daily expenses. This stipend is based on federal per diem rates set by the General Services Administration and varies depending on the cost of living where your assignment is located. Unlike housing stipends, meal and incidentals aren’t an “either, or” type of travel nurse stipend—if you maintain a tax home and qualify for stipends, you’ll receive one for meals and other expenses accrued. Your recruiter is your best resource when it comes to the breakdown of your pay package and stipends, so don’t hesitate to ask them questions!
Common Misconceptions About Travel Nurse Stipends
There are many misconceptions about travel nurse stipends, from how they’re calculated to whether they’re truly “free money.” We’ll debunk the top three most common we see!
Stipends Are “Free Money”
Stipends are not extra bonuses; they’re intended to cover necessary living expenses. While careful planning, budgeting, and affordable housing can allow nurses to save extra money while on assignment, they are not purely additional income but rather coverage for housing, meals, and incidentals accrued.
Stipends Are the Same Everywhere
Stipend rates vary widely depending on the cost of living in the assignment location. High-cost areas like California or New York will offer higher stipends, while rural areas may provide lower amounts. However, there are many benefits to taking an assignment in areas where the cost of living is lower, as your stipends might be able to stretch further than in a more popular, high-cost area.
Stipends Are Always Tax-Free
If a travel nurse does not maintain a tax home or stays in the same location for longer than a year, their travel nurse stipends can become taxable. Understanding tax home requirements is crucial to avoid unexpected tax liabilities.
Start Your Travel Nurse Career
Housing and meal stipends are key components of a travel nurse’s compensation package, providing significant financial advantages when managed wisely. Whether opting for agency-provided housing or taking a stipend, understanding the taxation rules, budgeting effectively, and optimizing expenses can help travel nurses maximize earnings while enjoying the benefits of travel assignments. If you’re considering travel nursing, apply with Medical Solutions today and let our recruiters help you accomplish your career goals!
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