Is there a specific commute distance i.e., 30 mils or 50 miles,in order to receive tax free income on a travel assignment. This distance would be from the taxable home/facility.
Ask a Travel Nurse Answer:
No, there is no specific distance set by the IRS that you have to be away from your tax home to qualify for tax free reimbursements on assignment. Many companies use the “50 mile rule” as a gauge, but the IRS does NOT actually have a “50 mile rule”.
I’d like to refer to an article that a tax specialist, Joseph Smith, wrote in Healthcare Traveler Magazine:
What you should take away from this is that there is NO specific number as far as distance goes and that the true test is if it is far enough away from your home that it would be unreasonable to return home after a day of work. Of course this enables the IRS to interpret things as it sees and any burden of proof would be upon you.
I will tell you that in the real world, I know of many travelers that work close to home and still represent themselves as being eligible for tax free reimbursements. Whether or not the IRS would see it the same way is very debatable.
If you are looking for more tax info, please do check out Joseph Smith’s site. He reviewed the chapter in my book on tax implications for travelers and he is a great resource for tax questions from travelers. His site can be found at: http://www.traveltax.com/ and his FAQ page (which is a MUST READ) can be found at: http://www.traveltax.com/TravelRN/KnowledgeBase/KnowledgeBaseHome.html
Hope this helps.