> ## 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.

# Tax Scenario Reference

> 20 verified tax scenarios showing how TaxHomeBase handles real-world travel nurse situations.

<Snippet file="tax-disclaimer.mdx" />

TaxHomeBase's tax engine is validated against a library of real-world travel nurse scenarios. Each scenario defines a nurse's situation — employment type, filing status, tax home, assignments, expenses — and the verified tax outcome.

These scenarios are also run as automated tests on every code change to prevent regressions.

<Info>
  All dollar amounts in scenarios are weekly rates unless noted. Stipend amounts are set within GSA per diem limits unless the scenario specifically tests GSA compliance.
</Info>

## Basic Tax Situations

### W-2 Nurse with Valid Tax Home

| Input           | Value                                                            |
| --------------- | ---------------------------------------------------------------- |
| Filing status   | Single                                                           |
| Employment type | W-2                                                              |
| Tax home        | Ohio (rent \$800/mo, visited 15 days ago, voter reg, OH license) |
| Assignment      | Kaiser Sacramento, CA — 13 weeks                                 |
| Base pay        | \$1,500/wk                                                       |
| Housing stipend | \$1,000/wk                                                       |
| M\&IE stipend   | \$450/wk                                                         |

| Expected Outcome   |                             |
| ------------------ | --------------------------- |
| Federal tax        | Greater than \$0            |
| Total stipends     | Greater than \$0 (tax-free) |
| CA state tax       | Greater than \$0            |
| CA filing required | Yes                         |
| Deduction method   | Standard (TCJA)             |

**What this verifies:** A compliant W-2 nurse with a valid tax home receives tax-free stipends. Federal and California state taxes are computed on base pay only. A CA non-resident return is required.

***

### No-Income-Tax State (Texas)

| Input           | Value                               |
| --------------- | ----------------------------------- |
| Filing status   | Single                              |
| Employment type | W-2                                 |
| Tax home        | Texas                               |
| Assignment      | MD Anderson, Houston, TX — 26 weeks |
| Base pay        | \$1,700/wk                          |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| Total state tax    | \$0              |
| TX filing required | No               |
| Federal tax        | Greater than \$0 |

**What this verifies:** Texas has no income tax. State tax is zero and no non-resident return is needed.

***

### No Assignments — Zero State

| Input           | Value        |
| --------------- | ------------ |
| Filing status   | Single       |
| Employment type | W-2          |
| Tax home        | Ohio (valid) |
| Assignments     | None         |

| Expected Outcome  |     |
| ----------------- | --- |
| Taxable income    | \$0 |
| Stipends          | \$0 |
| Federal tax       | \$0 |
| State tax         | \$0 |
| Quarterly payment | \$0 |

**What this verifies:** With no assignments, all tax values are zero. The engine handles the empty state cleanly.

***

## Employment Classification

### 1099 Contractor — SE Tax, Schedule C, QBI

| Input           | Value                                                |
| --------------- | ---------------------------------------------------- |
| Filing status   | Single                                               |
| Employment type | 1099                                                 |
| Tax home        | Ohio                                                 |
| Assignment      | Cleveland Clinic Weston, Jacksonville, FL — 26 weeks |
| Base pay        | \$1,500/wk                                           |
| Expenses        | \$1,200 travel                                       |
| Tax home costs  | \$850 rent                                           |
| Mileage         | 800 mi (tax home visits)                             |

| Expected Outcome |                                           |
| ---------------- | ----------------------------------------- |
| SE tax           | Greater than \$0                          |
| Deduction method | Business expense (Schedule C)             |
| QBI deduction    | Greater than \$0 (income below threshold) |
| Federal tax      | Greater than \$0                          |
| State tax        | \$0 (Florida)                             |

**What this verifies:** 1099 contractors pay self-employment tax. Business expenses reduce Schedule C income before SE tax. The 20% QBI deduction applies because income is below the \$191,950 threshold.

***

### 1099 Above QBI Phase-Out Threshold

| Input           | Value                                    |
| --------------- | ---------------------------------------- |
| Filing status   | Single                                   |
| Employment type | 1099                                     |
| Assignment      | Cedars-Sinai, Los Angeles, CA — 51 weeks |
| Base pay        | \$4,000/wk                               |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| QBI deduction    | \$0              |
| SE tax           | Greater than \$0 |
| Deduction method | Business expense |

**What this verifies:** When net self-employment income exceeds the QBI threshold (\$191,950 for single filers), the 20% QBI deduction is fully phased out.

***

### 1099 High Earner Above SS Wage Base

| Input           | Value                                                                         |
| --------------- | ----------------------------------------------------------------------------- |
| Filing status   | Single                                                                        |
| Employment type | 1099                                                                          |
| Assignments     | Mayo Clinic FL (26 wks, $4,000/wk) + Houston Methodist TX (26 wks, $4,200/wk) |
| Total base pay  | \~\$210,000/year                                                              |

| Expected Outcome |                        |
| ---------------- | ---------------------- |
| SE tax           | Greater than \$0       |
| Taxable income   | Greater than \$170,000 |
| State tax        | \$0 (FL + TX)          |

**What this verifies:** Social Security tax (12.4%) is capped at the wage base (\$176,100 in 2025). Medicare (2.9%) continues on all earnings. Both assignments are in no-tax states.

***

### 1099 Low Income — Full QBI

| Input           | Value                                  |
| --------------- | -------------------------------------- |
| Filing status   | Single                                 |
| Employment type | 1099                                   |
| Assignment      | Mercy Health, Cleveland, OH — 13 weeks |
| Base pay        | \$2,000/wk                             |
| Expenses        | \$500 travel                           |
| Tax home costs  | \$700 rent                             |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| QBI deduction    | Greater than \$0 |
| SE tax           | Greater than \$0 |
| Federal tax      | Greater than \$0 |

**What this verifies:** A low-income 1099 nurse below the QBI threshold receives the full 20% QBI deduction on qualified business income.

***

## Filing Status

### Head of Household

| Input           | Value                                    |
| --------------- | ---------------------------------------- |
| Filing status   | Head of household                        |
| Employment type | W-2                                      |
| Assignment      | Texas Children's, Houston, TX — 26 weeks |
| Base pay        | \$1,600/wk                               |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| Federal tax      | Greater than \$0 |
| State tax        | \$0 (Texas)      |
| Deduction method | Standard         |

**What this verifies:** Head of household filers receive a higher standard deduction ($22,500 in 2025 vs. $15,000 for single), reducing federal tax.

***

### Married Filing Jointly

| Input           | Value                        |
| --------------- | ---------------------------- |
| Filing status   | Married filing jointly       |
| Employment type | W-2                          |
| Assignment      | Tampa General, FL — 26 weeks |
| Base pay        | \$1,500/wk                   |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| Federal tax      | Greater than \$0 |
| State tax        | \$0 (Florida)    |
| Stipends         | Greater than \$0 |
| Deduction method | Standard         |

**What this verifies:** Married filing jointly receives the highest standard deduction (\$30,000 in 2025). Even with a 26-week assignment, a significant portion of income is covered by the deduction.

***

## Multi-State Situations

### Two States in One Year (CA + NY)

| Input           | Value                                                |
| --------------- | ---------------------------------------------------- |
| Filing status   | Single                                               |
| Employment type | W-2                                                  |
| Tax home        | Ohio                                                 |
| Assignment 1    | Cedars-Sinai, Los Angeles, CA — 13 weeks, \$1,600/wk |
| Assignment 2    | NYU Langone, New York, NY — 12 weeks, \$1,700/wk     |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| State count        | 2                |
| CA filing required | Yes              |
| NY filing required | Yes              |
| Total state tax    | Greater than \$0 |

**What this verifies:** Income from each state is tracked separately. Non-resident returns are required in both California and New York.

***

### Virginia Home, DC Assignment

| Input           | Value                                                     |
| --------------- | --------------------------------------------------------- |
| Filing status   | Single                                                    |
| Employment type | W-2                                                       |
| Tax home        | Virginia                                                  |
| Assignment      | MedStar Georgetown, Washington, DC — 13 weeks, \$1,800/wk |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| DC filing required | Yes              |
| Total state tax    | Greater than \$0 |

**What this verifies:** DC has its own income tax. A nurse working in DC owes DC non-resident tax regardless of home state.

***

### Multiple Assignments, Same State

| Input           | Value                                                  |
| --------------- | ------------------------------------------------------ |
| Filing status   | Single                                                 |
| Employment type | W-2                                                    |
| Tax home        | Ohio                                                   |
| Assignment 1    | Kaiser Sacramento, CA — 13 weeks, \$1,500/wk           |
| Assignment 2    | Stanford Health, Sacramento, CA — 12 weeks, \$1,600/wk |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| State count        | 1                |
| CA filing required | Yes              |
| Total state tax    | Greater than \$0 |

**What this verifies:** Income from multiple assignments in the same state is aggregated into a single state entry. Only one CA non-resident return is needed.

***

## State-Level Deductions

### W-2 in California — No AGI Floor

| Input           | Value                                                  |
| --------------- | ------------------------------------------------------ |
| Filing status   | Single                                                 |
| Employment type | W-2                                                    |
| Tax home        | Ohio                                                   |
| Assignment      | UCSF Medical, San Francisco, CA — 26 weeks, \$1,800/wk |
| Expenses        | $2,000 travel + $500 licensing                         |
| Tax home costs  | \$800 rent                                             |
| Mileage         | 500 mi (work travel)                                   |

| Expected Outcome           |                    |
| -------------------------- | ------------------ |
| CA filing required         | Yes                |
| CA state deduction applies | Yes                |
| Deduction method           | Standard (federal) |

**What this verifies:** California doesn't conform to TCJA. W-2 employees can deduct business expenses on the CA state return from the first dollar — no 2% AGI floor.

***

### W-2 in New York — 2% AGI Floor

| Input           | Value                                            |
| --------------- | ------------------------------------------------ |
| Filing status   | Single                                           |
| Employment type | W-2                                              |
| Tax home        | Ohio                                             |
| Assignment      | Mount Sinai, New York, NY — 26 weeks, \$1,750/wk |
| Expenses        | $3,000 travel + $1,000 licensing                 |
| Tax home costs  | \$1,200 rent                                     |
| Mileage         | 600 mi (work travel)                             |

| Expected Outcome           |                    |
| -------------------------- | ------------------ |
| NY filing required         | Yes                |
| NY state deduction applies | Yes                |
| Deduction method           | Standard (federal) |

**What this verifies:** New York allows W-2 expense deductions but applies a 2% AGI floor. Only the amount exceeding 2% of federal AGI is deductible on the NY state return.

***

### 1099 in NY — W-2 Deduction Does Not Apply

| Input           | Value                                            |
| --------------- | ------------------------------------------------ |
| Filing status   | Single                                           |
| Employment type | 1099                                             |
| Tax home        | Ohio                                             |
| Assignment      | Mount Sinai, New York, NY — 26 weeks, \$1,750/wk |
| Expenses        | \$2,000 travel                                   |

| Expected Outcome           |                               |
| -------------------------- | ----------------------------- |
| NY state deduction applies | No                            |
| Deduction method           | Business expense (Schedule C) |
| SE tax                     | Greater than \$0              |

**What this verifies:** 1099 contractors deduct expenses on Schedule C, not via state-specific W-2 deduction rules. The NY W-2 deduction does not apply to 1099 workers.

***

## Tax Home Compliance

### Itinerant Nurse — No Tax Home

| Input           | Value                                                |
| --------------- | ---------------------------------------------------- |
| Filing status   | Single                                               |
| Employment type | W-2                                                  |
| Tax home        | None                                                 |
| Assignment      | Memorial Hermann, Houston, TX — 26 weeks, \$1,600/wk |

| Expected Outcome   |             |
| ------------------ | ----------- |
| Stipend risk alert | Yes         |
| Compliance score   | Below 100%  |
| State tax          | \$0 (Texas) |

**What this verifies:** Without an established tax home, the IRS may treat all stipends as taxable income. TaxHomeBase flags the stipend risk.

***

### Long Assignment — 12-Month Rule

| Input           | Value                                                    |
| --------------- | -------------------------------------------------------- |
| Filing status   | Single                                                   |
| Employment type | W-2                                                      |
| Tax home        | Ohio                                                     |
| Assignment      | General Hospital, Los Angeles, CA — 52 weeks (full year) |

| Expected Outcome      |     |
| --------------------- | --- |
| Long assignment alert | Yes |
| CA filing required    | Yes |

**What this verifies:** The IRS 12-month rule states that if assignments at one location exceed 12 months, that location becomes the nurse's tax home. A year-long assignment triggers a warning alert.

***

### Property Rented Out — Disqualification Risk

| Input           | Value                                           |
| --------------- | ----------------------------------------------- |
| Filing status   | Single                                          |
| Employment type | W-2                                             |
| Tax home        | Ohio (rent \$1,000/mo, **property rented out**) |
| Assignment      | Cleveland Clinic Main, Houston, TX — 26 weeks   |

| Expected Outcome          |            |
| ------------------------- | ---------- |
| Property rented out alert | Yes        |
| Compliance score          | Below 100% |

**What this verifies:** Renting out the tax home property may disqualify it as an IRS tax home. TaxHomeBase flags this as a compliance risk.

***

### No Visit Recorded — Overdue Alert

| Input           | Value                                           |
| --------------- | ----------------------------------------------- |
| Filing status   | Single                                          |
| Employment type | W-2                                             |
| Tax home        | Ohio (no visit date recorded)                   |
| Assignment      | Rush University Medical, Chicago, IL — 13 weeks |

| Expected Outcome    |                  |
| ------------------- | ---------------- |
| Visit overdue alert | Yes              |
| IL filing required  | Yes              |
| State tax           | Greater than \$0 |

**What this verifies:** The IRS recommends returning to the tax home every 30 days. When no visit is on record, TaxHomeBase generates a visit overdue alert.

***

### Expensive Tax Home — Negative Net Benefit

| Input           | Value                                                                    |
| --------------- | ------------------------------------------------------------------------ |
| Filing status   | Single                                                                   |
| Employment type | W-2                                                                      |
| Tax home        | Ohio                                                                     |
| Assignment      | Rural Community Hospital, San Antonio, TX — 9 weeks, \$1,300/wk          |
| Housing stipend | \$700/wk                                                                 |
| M\&IE stipend   | \$300/wk                                                                 |
| Tax home costs  | $24,000 rent + $3,000 utilities + $2,000 insurance + $4,000 return trips |
| Mileage         | 1,200 mi (tax home visits)                                               |

| Expected Outcome            |                                 |
| --------------------------- | ------------------------------- |
| Tax home analysis available | Yes                             |
| Net benefit                 | Negative (costs exceed savings) |
| Tax savings                 | Greater than \$0                |
| Cost of maintaining         | Greater than \$0                |

**What this verifies:** When tax home maintenance costs (rent, utilities, return trips, visit mileage) exceed the tax savings from keeping stipends tax-free, the net benefit is negative. The nurse may be better off going itinerant — TaxHomeBase's cost-benefit analysis shows this clearly.

***

## Additional Filing Statuses

### Married Filing Separately

| Input           | Value                                                   |
| --------------- | ------------------------------------------------------- |
| Filing status   | Married filing separately                               |
| Employment type | W-2                                                     |
| Tax home        | Texas                                                   |
| Assignment      | Baylor Scott & White, Dallas, TX — 26 weeks, \$1,600/wk |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| Federal tax      | Greater than \$0 |
| State tax        | \$0 (Texas)      |
| Deduction method | Standard         |

**What this verifies:** Married filing separately receives the same standard deduction as single filers (\$15,200 in 2025). This filing status is sometimes used when spouses want separate tax liability.

***

## Edge Cases & Special Situations

### Assignment Spanning Year Boundary

| Input           | Value                                                    |
| --------------- | -------------------------------------------------------- |
| Filing status   | Single                                                   |
| Employment type | W-2                                                      |
| Tax home        | Ohio                                                     |
| Assignment      | Johns Hopkins, Baltimore, MD — Nov 2024 through Mar 2025 |
| Base pay        | \$1,700/wk                                               |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| Federal tax        | Greater than \$0 |
| MD filing required | Yes              |
| State tax          | Greater than \$0 |

**What this verifies:** Only the portion of the assignment within the selected tax year is counted. For year 2025, the Jan 1 through Mar 31 portion (\~13 weeks) is included. The November–December 2024 portion appears only in the 2024 tax year.

***

### Assignment with Bonuses

| Input            | Value                                                |
| ---------------- | ---------------------------------------------------- |
| Filing status    | Single                                               |
| Employment type  | W-2                                                  |
| Tax home         | Texas                                                |
| Assignment       | Parkland Memorial, Dallas, TX — 13 weeks, \$1,600/wk |
| Sign-on bonus    | \$5,000                                              |
| Completion bonus | \$3,000                                              |
| Referral bonus   | \$1,000                                              |

| Expected Outcome |                                |
| ---------------- | ------------------------------ |
| Total bonuses    | Greater than $0 ($9,000 total) |
| Federal tax      | Greater than \$0               |
| State tax        | \$0 (Texas)                    |

**What this verifies:** All three bonus types (sign-on, completion, referral) are tracked separately and added to taxable income.

***

### Zero-Stipend Assignment — No Risk

| Input           | Value                                                           |
| --------------- | --------------------------------------------------------------- |
| Filing status   | Single                                                          |
| Employment type | W-2                                                             |
| Tax home        | None (itinerant)                                                |
| Assignment      | VA Medical Center, Houston, TX — 26 weeks, \$2,500/wk base only |
| Stipends        | None                                                            |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| Total stipends     | \$0              |
| Stipend risk alert | No               |
| Federal tax        | Greater than \$0 |

**What this verifies:** Without stipends, there is nothing at risk from tax home compliance issues. No stipend risk alert fires even though the nurse has no tax home.

***

### Very Short Assignment — 2 Weeks

| Input           | Value                                                     |
| --------------- | --------------------------------------------------------- |
| Filing status   | Single                                                    |
| Employment type | W-2                                                       |
| Tax home        | Texas                                                     |
| Assignment      | Methodist Hospital, San Antonio, TX — 2 weeks, \$1,800/wk |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| Federal tax      | \$0              |
| State tax        | \$0 (Texas)      |
| Stipends         | Greater than \$0 |

**What this verifies:** A 2-week assignment generates only $3,600 in taxable income, which falls entirely below the $15,200 standard deduction. Federal tax is zero.

***

### Tax Year 2024 — Different Rates

| Input           | Value                                                  |
| --------------- | ------------------------------------------------------ |
| Filing status   | Single                                                 |
| Employment type | W-2                                                    |
| Tax home        | Ohio                                                   |
| Assignment      | Ohio State Wexner, Columbus, OH — 25 weeks, \$1,550/wk |
| Mileage         | 1,000 mi (work travel)                                 |

| Expected Outcome  |                            |
| ----------------- | -------------------------- |
| Federal tax       | Greater than \$0           |
| Mileage deduction | $670 (1,000 mi × $0.67/mi) |
| Total miles       | 1,000                      |

**What this verifies:** 2024 uses different tax parameters: standard deduction $14,600 (vs $15,200 in 2025), IRS mileage rate $0.67/mile (vs $0.70). The engine correctly applies year-specific values.

***

## Self-Employment Deep Dives

### 1099 Business Loss — Expenses Exceed Income

| Input           | Value                                                  |
| --------------- | ------------------------------------------------------ |
| Filing status   | Single                                                 |
| Employment type | 1099                                                   |
| Tax home        | Ohio                                                   |
| Assignment      | Baptist Health, Jacksonville, FL — 4 weeks, \$1,500/wk |
| Expenses        | \$10,000 travel                                        |
| Tax home costs  | \$2,000 rent                                           |

| Expected Outcome |     |
| ---------------- | --- |
| SE tax           | \$0 |
| QBI deduction    | \$0 |
| Federal tax      | \$0 |

**What this verifies:** When business expenses ($12,000) exceed total income ($6,000), net self-employment income is zero. No SE tax, QBI deduction, or federal tax applies.

***

### 1099 Additional Medicare Tax Trigger

| Input           | Value                                                |
| --------------- | ---------------------------------------------------- |
| Filing status   | Single                                               |
| Employment type | 1099                                                 |
| Tax home        | Texas                                                |
| Assignment      | Memorial Hermann, Houston, TX — 50 weeks, \$4,400/wk |

| Expected Outcome        |                  |
| ----------------------- | ---------------- |
| Additional Medicare tax | Greater than \$0 |
| SE tax                  | Greater than \$0 |
| State tax               | \$0 (Texas)      |

**What this verifies:** When SE base (92.35% of net SE income) exceeds $200,000, an additional 0.9% Medicare surtax applies on the excess. At $4,400/wk for 50 weeks ($220,000), the SE base reaches ~$203,170, triggering the surtax.

***

### MFJ 1099 — Higher QBI Threshold

| Input           | Value                                              |
| --------------- | -------------------------------------------------- |
| Filing status   | Married filing jointly                             |
| Employment type | 1099                                               |
| Tax home        | Florida                                            |
| Assignment      | Jackson Memorial, Miami, FL — 50 weeks, \$3,200/wk |

| Expected Outcome |                  |
| ---------------- | ---------------- |
| QBI deduction    | Greater than \$0 |
| SE tax           | Greater than \$0 |
| State tax        | \$0 (Florida)    |

**What this verifies:** Married filing jointly has a QBI threshold of $383,900 (vs $191,950 for single). A nurse earning \$160,000 net SE income would lose QBI filing single but retains the full 20% deduction when filing jointly.

***

### 1099 with Significant Mileage

| Input           | Value                                                         |
| --------------- | ------------------------------------------------------------- |
| Filing status   | Single                                                        |
| Employment type | 1099                                                          |
| Tax home        | Ohio                                                          |
| Assignment      | University Hospitals, Cleveland, OH — 26 weeks, \$1,600/wk    |
| Mileage         | 3,000 mi work travel + 2,000 mi tax home visits = 5,000 total |

| Expected Outcome  |                              |
| ----------------- | ---------------------------- |
| Total miles       | 5,000                        |
| Mileage deduction | $3,500 (5,000 mi × $0.70/mi) |
| SE tax            | Greater than \$0             |

**What this verifies:** The IRS standard mileage rate generates a significant Schedule C deduction that reduces SE income. At 5,000 miles and $0.70/mile (2025 rate), the $3,500 deduction directly reduces self-employment tax.

***

## State-Level Deductions (Extended)

### W-2 in Alabama — 2% AGI Floor

| Input           | Value                                               |
| --------------- | --------------------------------------------------- |
| Filing status   | Single                                              |
| Employment type | W-2                                                 |
| Tax home        | Ohio                                                |
| Assignment      | UAB Hospital, Birmingham, AL — 13 weeks, \$1,550/wk |
| Expenses        | $2,500 travel + $800 licensing                      |
| Tax home costs  | \$750 rent                                          |
| Mileage         | 400 mi (work travel)                                |

| Expected Outcome           |                    |
| -------------------------- | ------------------ |
| AL filing required         | Yes                |
| AL state deduction applies | Yes                |
| Deduction method           | Standard (federal) |

**What this verifies:** Alabama does not conform to TCJA and still allows W-2 expense deductions on the state return, with a 2% AGI floor (same rule as New York).

***

### W-2 in Hawaii — 2% AGI Floor

| Input           | Value                                                       |
| --------------- | ----------------------------------------------------------- |
| Filing status   | Single                                                      |
| Employment type | W-2                                                         |
| Tax home        | Ohio                                                        |
| Assignment      | Queen's Medical Center, Honolulu, HI — 13 weeks, \$1,750/wk |
| Expenses        | $3,500 travel + $1,000 licensing                            |
| Tax home costs  | \$700 rent                                                  |
| Mileage         | 300 mi (work travel)                                        |

| Expected Outcome           |                    |
| -------------------------- | ------------------ |
| HI filing required         | Yes                |
| HI state deduction applies | Yes                |
| Deduction method           | Standard (federal) |

**What this verifies:** Hawaii does not conform to TCJA and still allows W-2 expense deductions on the state return, with the same 2% AGI floor as New York and Alabama.

***

### W-2 in Illinois — No State Deduction

| Input           | Value                                                     |
| --------------- | --------------------------------------------------------- |
| Filing status   | Single                                                    |
| Employment type | W-2                                                       |
| Tax home        | Ohio                                                      |
| Assignment      | Northwestern Memorial, Chicago, IL — 13 weeks, \$1,700/wk |
| Expenses        | $2,000 travel + $800 licensing                            |

| Expected Outcome           |                    |
| -------------------------- | ------------------ |
| IL filing required         | Yes                |
| IL state deduction applies | No                 |
| Deduction method           | Standard (federal) |

**What this verifies:** Illinois conforms to TCJA. Even with significant tracked expenses, no W-2 expense deduction applies on the IL state return. Only five states (NY, CA, AL, HI, AR) allow this deduction.

***

## Multi-State (Extended)

### 1099 Multi-State — Florida + California

| Input           | Value                                                |
| --------------- | ---------------------------------------------------- |
| Filing status   | Single                                               |
| Employment type | 1099                                                 |
| Tax home        | Ohio                                                 |
| Assignment 1    | Baptist Health Miami, FL — 13 weeks, \$1,600/wk      |
| Assignment 2    | Cedars-Sinai, Los Angeles, CA — 13 weeks, \$1,800/wk |

| Expected Outcome   |                            |
| ------------------ | -------------------------- |
| SE tax             | Greater than \$0           |
| FL filing required | No                         |
| CA filing required | Yes                        |
| State tax          | Greater than \$0 (CA only) |

**What this verifies:** For 1099 contractors, SE tax applies to total income from all assignments. Florida generates no state tax, so only California contributes to the state tax total.

***

### Three States in One Year (CA + NY + IL)

| Input           | Value                                                       |
| --------------- | ----------------------------------------------------------- |
| Filing status   | Single                                                      |
| Employment type | W-2                                                         |
| Tax home        | Ohio                                                        |
| Assignment 1    | UCSF Medical, San Francisco, CA — 13 weeks, \$1,800/wk      |
| Assignment 2    | NYU Langone, New York, NY — 13 weeks, \$1,700/wk            |
| Assignment 3    | Rush University Medical, Chicago, IL — 13 weeks, \$1,650/wk |

| Expected Outcome   |                  |
| ------------------ | ---------------- |
| State count        | 3                |
| CA filing required | Yes              |
| NY filing required | Yes              |
| IL filing required | Yes              |
| State tax          | Greater than \$0 |

**What this verifies:** Income from each state is tracked separately. Three non-resident state returns are required. Each state's tax is computed independently using that state's brackets and the income earned there.

***

### W-2 Multi-State — CA (Deduction) + TX (No Tax)

| Input           | Value                                                  |
| --------------- | ------------------------------------------------------ |
| Filing status   | Single                                                 |
| Employment type | W-2                                                    |
| Tax home        | Ohio                                                   |
| Assignment 1    | UCSF Medical, San Francisco, CA — 13 weeks, \$1,800/wk |
| Assignment 2    | Methodist Hospital, Houston, TX — 13 weeks, \$1,600/wk |
| Expenses        | $2,000 travel + $800 licensing                         |

| Expected Outcome           |                            |
| -------------------------- | -------------------------- |
| State count                | 2                          |
| CA state deduction applies | Yes                        |
| TX filing required         | No                         |
| State tax                  | Greater than \$0 (CA only) |

**What this verifies:** When working in multiple states, the CA W-2 expense deduction applies to the California portion of income, while Texas generates no state tax or filing requirement.

***

## GSA Compliance

### Stipends Exceed GSA Per Diem Limits

| Input           | Value                                    |
| --------------- | ---------------------------------------- |
| Filing status   | Single                                   |
| Employment type | W-2                                      |
| Tax home        | Ohio                                     |
| Assignment      | Memorial Hermann, Houston, TX — 26 weeks |
| Housing stipend | $1,500/wk ($214/day)                     |
| M\&IE stipend   | $700/wk ($100/day)                       |

| Expected Outcome  |             |
| ----------------- | ----------- |
| GSA exceeds alert | Yes         |
| State tax         | \$0 (Texas) |

**What this verifies:** The GSA per diem rate for Houston is $143/day lodging and $74/day M\&IE. This nurse's stipends exceed both limits ($214/day housing, $100/day M\&IE). The IRS allows tax-free stipends only up to GSA rates — the excess is flagged.

***

## Tax Home Cost-Benefit Analysis

### Positive Net Benefit — Large Stipends, Low Costs

| Input           | Value                                                  |
| --------------- | ------------------------------------------------------ |
| Filing status   | Single                                                 |
| Employment type | W-2                                                    |
| Tax home        | Ohio (rent \$500/mo)                                   |
| Assignment      | Stanford Health, Sacramento, CA — 26 weeks, \$1,600/wk |
| Housing stipend | \$1,300/wk                                             |
| M\&IE stipend   | \$500/wk                                               |
| Mileage         | 400 mi (tax home visits)                               |

| Expected Outcome            |                  |
| --------------------------- | ---------------- |
| Tax home analysis available | Yes              |
| Net benefit                 | Positive         |
| Tax savings                 | Greater than \$0 |
| Cost of maintaining         | Greater than \$0 |

**What this verifies:** With large stipends ($46,800/year tax-free) and low maintenance costs ($500 rent + \$280 visit mileage), the tax savings far exceed maintenance costs. The net benefit is clearly positive.

***

### High ROI Tax Home

| Input           | Value                                                |
| --------------- | ---------------------------------------------------- |
| Filing status   | Single                                               |
| Employment type | W-2                                                  |
| Tax home        | Texas (rent \$400/mo)                                |
| Assignment      | Cedars-Sinai, Los Angeles, CA — 26 weeks, \$1,800/wk |
| Housing stipend | \$1,400/wk                                           |
| M\&IE stipend   | \$500/wk                                             |

| Expected Outcome            |                 |
| --------------------------- | --------------- |
| Tax home analysis available | Yes             |
| ROI                         | Greater than 0% |
| Net benefit                 | Positive        |

**What this verifies:** With minimal tax home costs (\$400/month rent, no other expenses) and large tax-free stipends, the return on investment for maintaining the tax home is extremely high — every dollar spent on maintenance generates many dollars in tax savings.