Travel nurses log thousands of miles driving between contracts, hospitals, and temporary housing. A frequent point of confusion is whether you can deduct your vehicle mileage, gas, and car maintenance on your annual federal income tax return.
The Tax Cuts and Jobs Act suspended miscellaneous itemized deductions for W-2 employees through 2025 and subsequent tax years. Consequently, W-2 travel nurses cannot write off unreimbursed vehicle mileage on their federal tax returns.
W-2 travel nurses vs 1099 independent contractors
If you work as a standard W-2 employee through a healthcare staffing agency, you cannot deduct vehicle expenses on federal Form 1040 Schedule A. Even if you drive 1,500 miles from Ohio to an assignment in Arizona, you cannot claim a tax deduction for those miles on your federal return.
In contrast, if you operate as a 1099 independent contractor nurse, vehicle mileage driven between work sites or between your permanent tax home and temporary assignment locations remains deductible on Schedule C. The IRS sets an annual standard mileage rate that covers fuel, insurance, depreciation, and repairs.
You can check how W-2 pay compares to 1099 contract terms using our Contract Analyzer.
Tax-free agency travel reimbursements
While W-2 nurses cannot take a tax deduction on their own tax returns, staffing agencies can legally reimburse you for travel expenses tax-free under an accountable plan.
Many agencies offer non-taxable travel stipends or mileage reimbursements, commonly called travel in and travel out pay, to cover relocation between contracts. These reimbursements do not count as taxable income on your Form W-2 as long as they stay within federal limits and you provide proof of travel.
Review federal accountable plan regulations directly through the Internal Revenue Service.
What about local commuting at the assignment location?
Driving from your temporary apartment or hotel to the hospital each day is considered personal commuting by the IRS, not business travel. Local daily commuting is never tax-deductible, even for 1099 contractors.
Only travel between your tax home and the assignment city, or travel between different clinical facilities during the work day, qualifies as business mileage. Track your assignments and assess your travel eligibility using our Tax Home Quiz.
Frequently asked questions
Can W-2 travel nurses deduct mileage on their federal tax return?
No. The Tax Cuts and Jobs Act suspended unreimbursed employee business expense deductions for W-2 workers on federal Form 1040 Schedule A.
How can travel nurses receive tax-free mileage reimbursement?
Staffing agencies can provide non-taxable travel in and travel out mileage allowances under an accountable plan when you travel between your tax home and your contract city.
Is daily driving from temporary lodging to the hospital deductible?
No. Driving from your temporary apartment or hotel to the hospital is classified as personal commuting, which is never deductible under IRS regulations.