Relocating across state lines every 13 weeks involves substantial moving costs, including rental trucks, vehicle shipping, temporary lodging, and fuel. Many travel nurses assume they can deduct these out-of-pocket relocation expenses on their annual federal income tax return.
Prior to 2018, taxpayers could deduct qualified moving expenses using Form 3903. However, federal tax legislation suspended the moving expense deduction for most taxpayers through 2025 and beyond.
The suspension of federal moving expense deductions
Under the Tax Cuts and Jobs Act (TCJA), the deduction for personal moving expenses was suspended for all non-military taxpayers.
As a W-2 travel nurse, you cannot claim a tax deduction for the cost of driving to your assignment city, shipping household goods, renting trailers, or staying in hotels along the way. These costs cannot be deducted on Schedule A or anywhere else on your federal Form 1040.
The only taxpayers who remain eligible for the federal moving expense deduction are active-duty members of the Armed Forces moving pursuant to a military order.
Review the statutory suspension details in IRS Publication 521.
Employer reimbursements under an accountable plan
While you cannot deduct moving expenses yourself, your staffing agency can provide tax-free travel reimbursements under an accountable plan.
Staffing agencies frequently offer travel stipends, often structured as a lump-sum travel in and travel out allowance, such as $500 at the start of a contract and $500 at completion.
Under IRS Publication 463, travel between your permanent tax home and your temporary assignment location is considered business travel. If your agency requires you to substantiate your travel and reimburses you within federal limits, those funds are completely excluded from your taxable wages.
You can calculate the net benefit of agency travel stipends using our Contract Analyzer.
State tax exceptions for moving expenses
While the federal moving deduction is suspended, a few states did not conform to the federal tax changes.
States such as California, New York, Pennsylvania, and Massachusetts maintain distinct state level rules regarding moving expenses. However, to qualify for a state moving deduction, the move must generally be considered permanent and meet strict distance and duration of employment tests, which temporary 13-week travel assignments rarely satisfy.
Verify whether your contracts remain properly structured by reviewing your profile with our Tax Home Quiz.
Frequently asked questions
Can travel nurses deduct moving van rentals or mileage on federal taxes?
No. The Tax Cuts and Jobs Act suspended the federal moving expense deduction for non-military taxpayers on federal tax returns.
Can staffing agencies reimburse travel moving expenses tax-free?
Yes. Staffing agencies can provide tax-free travel in and travel out stipends under an accountable plan when traveling to and from temporary assignments.
Do any states allow moving expense deductions for travel nurses?
A few non-conforming states like California and New York retain state moving deductions, but temporary 13-week assignments rarely satisfy statutory duration tests.