IRS Definition
The IRS defines your tax home as your regular place of business or post of duty, regardless of where your family lives. For travel nurses who move between assignments, this means the area where you maintain a permanent residence with ongoing financial and personal ties. The IRS looks at three factors to determine your tax home:1. Regular Place of Abode
You maintain a dwelling (owned or rented) in the area. This is the address you call home, where your belongings are, and where you return between or during assignments.2. Duplication of Expenses
You incur duplicate living expenses — paying for housing at your tax home and at your assignment location simultaneously. This is the core justification for tax-free stipends: the IRS allows non-taxable reimbursement because you’re maintaining two residences.3. Ties to the Area
You haven’t abandoned your tax home. Evidence includes:- Voter registration at the address
- Driver’s license in the state
- Regular visits home (every 30 days recommended)
- Financial ties — paying rent/mortgage, utilities, insurance
- Personal ties — family, community involvement, church membership
What Happens Without a Tax Home
If the IRS determines you don’t have a valid tax home, you’re classified as an itinerant worker. The consequences:- All stipends become taxable — Housing and M&IE stipends are added to your gross income
- Retroactive taxation — The IRS can reclassify stipends from prior years
- Penalties and interest — On top of the additional tax owed
- Loss of duplicate expense deductions — No deduction for maintaining a second residence
Common Mistakes
- Renting out your home — If tenants occupy your residence, the IRS may view it as an investment property, not your personal dwelling
- Not visiting regularly — Long gaps between visits suggest abandonment
- No financial ties — If you’re not paying rent, utilities, or maintaining the property, the IRS may question whether it’s truly your home
- Spending too long in one location — The 12-month rule can convert a temporary work location into your new tax home
How TaxHomeBase Helps
TaxHomeBase monitors your tax home status continuously:- Strength Indicator — 5-factor evaluation with strong/weak/critical ratings
- Stipend Eligibility — 6-criteria IRS check with pass/fail per item
- Visit Tracker — Color-coded countdown on the Dashboard
- Abandonment Checklist — Risk items with direct action buttons
- Notifications — visit_overdue and itinerant_risk alerts