Are you thinking of becoming a travel nurse and make more money? With travel nursing, you will not only explore new cities but can also enjoy the benefits that come with travel nursing. One of the perks of becoming a travel nurse is getting a housing stipend! But what is a housing stipend, and how can you make the most of this amazing benefit? In this blog, we will cover everything you need to know about housing stipends.
What is a travel housing stipend?
A housing stipend is the amount that a travel nursing agency gives nurses to cover their living expenses during their assignment. The best part about the housing stipend is that it is tax-free if you follow certain IRS rules. We all know that travel nurses work on contracts and their work contract typically lasts for 13 weeks. This work contract can be extended due to various reasons, and with the help of a housing stipend, nurses can rent an apartment, share a house, or book an Airbnb.
How do housing stipends work?
Travel nursing housing stipends are offered in 2 ways;
Lump sum: A travel nursing agency provides nurses with direct money or lump sum and nurses are responsible for finding their own housing whether it is an apartment, hotel Airbnb, etc.
Housing by the agency: With this method the housing is already arranged for travel nurses which is furnished, and nurses don’t have to worry about finding a place during their assignment.
How much is the housing stipend?
The housing stipend varies for travel nurses depending on the following factors:
- Location
- Travel nursing agency
- The length of the assignment
Tips on using housing stipends effectively
Some of the tips and tricks on using the housing stipends to save more money are:
- Sharing rooms: one of the best ways to save money on a housing stipend is to share a room with fellow nurses. Sharing a room can help you save a lot especially in expensive cities.
- Finding your own housing: find a housing that fits your housing stipends such as apartment, Airbnb, hotel room etc.
- Short-term rentals: travel nurses can also go for short-term rentals such as Airbnb, which is fully furnished and they don’t have to worry about anything e.g. laundry, kitchen etc.
- Negotiate: Negotiate for higher stipends, especially in expensive cities. You can talk to your travel nursing agencies about that.
- Choose less expensive areas: Another best option is choosing the less expensive area so you can save money on housing stipends.
What are the pros and cons of a travel nursing housing stipend?
One of the benefits for travel nurses is the housing stipend, which has its own pros and cons. The benefits of housing stipends are:
Pros:
- Nurses get to choose their own housing.
- It is tax-free income if you meet certain IRS requirements.
- It is an additional payment.
Cons:
- Sometimes it is stressful to find your own housing.
- Sometimes, the stipend is not enough to cover the cost of housing, especially in expensive cities.
- You have to follow certain IRS rules to make sure that the housing stipend is tax-free.
Tax considerations of housing stipends for travel nurses
Travel nurses have to meet certain IRS requirements to make their housing stipend tax-free such as:
- Travel nurses must maintain a tax home. It is their permanent residence where they live when they are not on assignment.
- They cannot claim a stipend if their contract is in the same location where they have a tax home or permanent residence.
- Nurses have to keep detailed records of housing expenses such as receipts to prove that the housing stipend was not spent for any other purposes.
Tips for finding affordable housing for nurses
- Use housing websites such as Furnished Finder, Airbnb, etc., which are ideal for nurses.
- Some people sublet their apartments or homes for a few months, which can be another good option for travel nurses as it can be cheaper.
- Consider location.
- Negotiate with landlords to get discounted prices.
Conclusion
Travel nurses not only explore new cities but also get other benefits with travel nursing, one of which is a housing stipend. Whether you are taking a housing stipend as a lump sum or if the housing is provided to you by the travel nursing agency, it is important to understand to maximize its benefits for personal and financial advantage. Housing stipends are tax-free, but you have to follow certain IRS rules, and therefore, you should have an understanding of taxes to make your housing stipend tax-free.
If you are a travel nurse who is looking for the best job opportunities, then download our SkillGigs app now and become part of our travel nursing world. Make more money with SkillGigs.
