> ## Documentation Index
> Fetch the complete documentation index at: https://docs.taxhomebase.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Protecting Your Stipends

> The 4 IRS requirements for keeping housing and meal stipends tax-free.

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Tax-free stipends are the biggest financial advantage of travel nursing. But the IRS has specific requirements — when they're not met, stipends become taxable income. Here are the 4 requirements the IRS evaluates.

## Rule 1: Maintain a Tax Home

The IRS requires a legitimate [tax home](/tax-education/tax-home-explained) — a permanent residence where the taxpayer maintains financial and personal ties. This means:

* Paying rent or mortgage at your permanent address
* Keeping your belongings there
* Being registered to vote and holding a driver's license in that state
* Not renting the property out to tenants

<Info>
  You don't need to own a home. Renting a room from a family member counts, as long as you're paying fair market rent and can prove it.
</Info>

## Rule 2: Incur Duplicate Expenses

The entire justification for tax-free stipends is that you're paying for **two residences** simultaneously: your permanent home and your temporary assignment housing. You need evidence of both:

* **Tax home costs** — Rent, utilities, insurance at your permanent address
* **Assignment costs** — Housing expenses at your work location

TaxHomeBase's [Cost-Benefit Analysis](/guides/tax-home) compares these side-by-side.

## Rule 3: Visit Your Tax Home Regularly

The IRS expects you to return to your tax home periodically to demonstrate it's still your primary residence. While there's no strict legal requirement, the standard practice is:

* **Every 30 days** — Recommended visit frequency
* **At minimum every 45 days** — TaxHomeBase flags overdue visits after 30 days

TaxHomeBase tracks visit frequency via the "Last Visit Date" field on the [Tax Home](/guides/tax-home) page, and return trip mileage can be recorded on the Mileage page.

## Rule 4: Don't Exceed the 12-Month Rule

If you work in the same general area for more than 12 months (or expect to), the IRS may consider that location your new tax home — ending your eligibility for tax-free stipends at that location.

Key details:

* The 12-month clock is **cumulative** across assignments in the same metro area
* It's based on **location**, not facility — working at different hospitals in the same city counts
* A break of less than 12 months between stints doesn't reset the clock

See [The 12-Month Rule](/tax-education/twelve-month-rule) for the full explanation.

## What Evidence Do You Need?

The IRS expects **contemporaneous documentation** — records created at or near the time of the events, not reconstructed later:

| Evidence                        | Purpose                                |
| ------------------------------- | -------------------------------------- |
| Lease or mortgage statements    | Proves you maintain a residence        |
| Rent receipts / bank statements | Proves ongoing payments                |
| Utility bills                   | Proves the home is active (not vacant) |
| Voter registration card         | Ties you to the jurisdiction           |
| Driver's license                | Official ID in your tax home state     |
| Travel receipts (return trips)  | Proves regular visits                  |
| Mileage log                     | IRS-required for vehicle deductions    |

## Stipend Defense Check

TaxHomeBase's [Stipend Defense Check](/guides/assignments) evaluates your stipend eligibility per assignment against 7 criteria. It's available in the expanded detail of each assignment card and gives a verdict:

* **Defensible** (6–7/7) — Your stipends are well-supported
* **At Risk** (5/7) — Some gaps to address
* **Not Defensible** (4 or fewer) — Immediate action needed

When not defensible, it shows your financial exposure: total stipends at risk and the estimated additional tax at 22%.