How to Do Local Travel Nursing and the Tax Home Rule

The landscape of nursing careers now includes the option of taking on short-term contracts close to one’s residence, known as local travel nursing. This path allows Registered Nurses to secure the flexibility and high compensation of contract work without relocating far from home. Nurses pursuing this option can maintain familiar routines, stay near family, and leverage their knowledge of local facilities and systems. This choice is popular for experienced nurses seeking to maximize earnings while avoiding the stresses associated with long-distance travel and temporary housing.

Defining Local Travel Nursing

Local travel nursing distinguishes itself from traditional travel nursing based on the proximity of the assignment to the nurse’s primary residence. While traditional contracts require significant travel, local contracts involve assignments within the nurse’s local commuting area. Staffing agencies often use a benchmark of a 50-mile radius from the nurse’s established tax home, though this specific distance is not a federal regulation.

The defining factor is whether the nurse must incur duplicate living expenses to fulfill the job requirements, a standard usually not met when the assignment is nearby. If a nurse can reasonably commute home after a shift and does not require lodging near the facility, the contract is classified as local.

Essential Prerequisites and Experience

Before pursuing contract work, a Registered Nurse must meet the standard professional requirements for clinical practice. This includes holding an active RN license and possessing an Associate Degree in Nursing (ADN) or a Bachelor of Science in Nursing (BSN). Many agencies and hospitals prefer or require a BSN, especially those with Magnet designation.

Agencies look for nurses who can immediately integrate into a new unit with minimal orientation. Most staffing firms require a minimum of one to two years of recent, specialized bedside experience in an acute care setting before considering a nurse for a contract. Required certifications, such as Basic Life Support (BLS) and Advanced Cardiovascular Life Support (ACLS), must also be current and specific to the nurse’s specialty area.

Finding and Securing Local Assignments

The search for local contract opportunities requires leveraging multiple specialized channels beyond typical staff job boards. National travel nursing agencies often have local contract divisions that are a primary resource for finding nearby openings, offering a streamlined process for contracting and credentialing.

Nurses can find opportunities through several avenues:

  • Specialized local staffing agencies or regional nursing registries that offer contracts larger national firms overlook.
  • Networking directly with local hospitals to inquire about internal float pools or short-term contract needs.
  • National travel nursing agencies that have local contract divisions.

Resumes should emphasize the ability to adapt quickly and independently, highlighting diverse experience across various unit types or hospital systems.

Securing the contract involves navigating a highly competitive interview process focused on the nurse’s clinical competency and ability to integrate seamlessly into an existing team. Recruiters and hiring managers prioritize evidence of autonomy and advanced skills for short-term staffing. The negotiation phase is also important, as the pay package for local work is structured differently than a traditional travel assignment.

Understanding Compensation and Tax Implications

The most significant difference between local and traditional travel nursing lies in the compensation structure and its tax treatment, governed by the Internal Revenue Service’s (IRS) “tax home” rule. The IRS defines a tax home as the general area of a person’s main place of business. To qualify for tax-free stipends, a travel nurse must maintain a permanent tax home and travel far enough away to require them to duplicate living expenses, such as paying for temporary lodging and meals near the assignment location.

Since a local travel nurse works within the area of their established tax home, they are not duplicating expenses. This invalidates eligibility for tax-free stipends for housing and meals. Consequently, the entire compensation package for a local contract is treated as fully taxable income, unlike the blended rate offered to traditional travelers. While a local nurse’s hourly wage is often higher than a staff nurse’s pay, it is all subject to federal and state income taxes.

The common perception of a “50-mile rule” is a misconception; distance is not the determining factor for the IRS, but rather whether the nurse is genuinely duplicating expenses. Staffing agencies often use a mileage radius (such as 50 or 75 miles) as an administrative guideline to define who is “local” and ineligible for tax-advantaged stipends. Nurses who are deemed itinerant, meaning they have no established tax home, also do not qualify for tax-free stipends.

Managing the Logistics of Local Contracts

Once a local contract is secured, the logistical challenges shift from relocation and housing to managing the daily realities of the short-term role. The commute becomes a significant factor, requiring nurses to balance the distance and time needed to travel to a facility outside their normal route. Maintaining local residency status is straightforward, as the nurse continues to live in their primary home and file taxes in their home state.

Working in a familiar area may involve interacting with former colleagues, requiring careful navigation of professional boundaries. Since the local contract nurse is a temporary resource, maintaining a focus on contracted clinical duties ensures a smooth working relationship with permanent staff. The administrative burden of managing multiple short-term contracts includes coordinating start and end dates, handling quick credentialing processes, and ensuring proper documentation for each assignment.

Evaluating the Pros and Cons of Local Travel Nursing

Local travel nursing offers several advantages, primarily the ability to secure high contract pay rates while maintaining a stable home life. Nurses avoid the stress and expense of temporary housing, moving logistics, and separation from family and support systems. Familiarity with local hospital systems, electronic medical records, and regional patient populations allows for a faster transition into a new unit.

The primary disadvantage is the absence of tax-free stipends, which reduces the overall take-home pay compared to a traditional travel nurse earning a blended rate. Since the local nurse’s entire wage is taxed, the financial benefit is less pronounced than it might initially appear. Contract options may also be more limited in a single geographic area, potentially requiring more frequent job searching. The lack of the “travel” aspect may also contribute to a higher risk of burnout, as the nurse takes on a high-workload role without the psychological break associated with moving to a new city.