The travel nursing profession has gained widespread attention for its combination of high compensation and scheduling flexibility. This career path allows registered nurses to accept temporary, short-term assignments. Many nurses seek these advantages without having to travel far from home, leading to the concept of the “local travel nurse.” While this term is common, the financial reality is complex due to specific legal limitations. The primary barrier to accessing the full financial benefit of traditional travel nursing locally lies in the non-taxable nature of housing and meal stipends.
Defining the Local Travel Nurse Concept
A local travel nurse role, often called a commuter contract, is a short-term assignment that a nurse accepts at a healthcare facility near their primary residence. These positions typically involve the same 8- to 13-week duration as traditional travel contracts, providing the desired flexibility in scheduling. Local contracts are utilized by hospitals to fill immediate staffing gaps without committing to a permanent hire.
The fundamental distinction centers on the tax-free stipend. Traditional travel nurses receive a significant portion of their pay as a non-taxable reimbursement for lodging and per diem expenses. A nurse on a local contract does not need temporary housing or travel extensively, which disqualifies them from receiving this tax-free income. This difference in compensation structure is the single most important factor determining the financial viability of local contract nursing.
The IRS Tax Home Rule and Distance Requirements
The Internal Revenue Service (IRS) establishes the requirements for receiving non-taxable stipends through the concept of a “tax home.” A nurse’s tax home is defined as the entire city or general area where their main place of business is situated, not their physical residence. To qualify for tax-free stipends, a nurse must be considered “temporarily away from home” for business purposes. This requires maintaining financial ties to a permanent residence while incurring expenses at the temporary work location.
Qualifying requires the nurse to be duplicating expenses. This means they must pay for lodging and meals at the assignment location while also financially maintaining their primary tax home. If a nurse commutes daily from their primary residence, they are not duplicating lodging expenses, and the stipends become taxable income. The IRS focuses on whether the distance requires an overnight stay for necessary rest before the next shift. If the assignment is close enough for a reasonable daily commute, the nurse cannot claim non-taxable stipends. Nurses considering a contract position should consult with a tax professional to ensure compliance with these rules.
Key Differences in Local Contract Compensation
The compensation structure for a local contract nurse differs significantly from that of a traditional traveler due to the tax home rule. Traditional travel nurse pay packages feature a “blended rate,” which combines a lower taxable hourly wage with the substantial non-taxable stipends for housing and meals. The tax-free nature of the stipend allows the traditional traveler to retain a much larger portion of their total compensation.
Since local contract nurses do not qualify for stipends, their entire compensation package is paid as a fully taxable hourly wage. While this taxable hourly rate may appear higher than a staff nurse’s pay, the local nurse’s total net income is substantially reduced by the full burden of income taxes. A traditional traveler’s overall gross pay is effectively higher because the tax-free portion is not subject to federal, state, or local income taxes. Therefore, a local contract nurse receives a higher taxable rate but a lower net take-home pay compared to a traditional traveler who qualifies for the stipends.
Practical Alternatives for Flexible Local Nursing Work
Since the full financial advantage of traditional travel nursing is inaccessible for local roles, nurses seeking flexibility and higher pay near home can explore several alternative options.
Per Diem (PRN) Nursing
Per Diem, or PRN, nursing offers a high level of scheduling control. The Latin term pro re nata means “as needed.” PRN nurses work on a shift-by-shift basis, allowing them to choose their schedule entirely. They often earn a significantly higher hourly rate than permanent staff nurses.
Hospital Float Pools and Internal Agencies
Joining a Hospital Float Pool or an Internal Agency within a large healthcare system is another viable option. These roles involve short-term assignments within multiple facilities owned by the same health system, providing variety and competitive pay without requiring a long-distance relocation. Float pool nurses are compensated at a higher rate because they provide the facility with flexibility by covering different units or locations as needed.
Telecommuting Nursing
Telecommuting nursing is an increasingly available option that offers flexibility and a better work-life balance. This allows nurses to provide consultation or care coordination remotely. These alternatives enable nurses to achieve a high degree of scheduling autonomy and competitive compensation without the tax complications of a local contract.
Strategies for Securing Local Travel Assignments
Nurses who prefer the structure of a local contract, accepting the fully taxable wage, need a proactive approach to secure these less common roles. Local staffing agencies often have relationships with nearby facilities and are a direct resource for finding contracts that meet commuting criteria. Working directly with these local agencies provides an advantage over relying solely on large national travel companies.
Transparency with recruiters is essential. Nurses should explicitly state their desire for a local contract and their understanding that they will not be eligible for tax-free stipends. Being open about waiving the stipends simplifies the negotiation process and clarifies the pay structure from the start. Leveraging professional networks and specialized online job portals is also useful, as these platforms often list local contract opportunities that may not be widely advertised as traditional travel assignments. These assignments are typically secured by nurses who are persistent and clear about their compensation expectations.