What can travel nurses deduct on taxes?

1099 travel nurses can deduct license renewals, certifications and CEUs, professional liability insurance, work-related travel and mileage (70¢/mile in 2025), scrubs and equipment, and professional dues. These reduce your net profit before self-employment and income tax.

Are travel nurse stipends tax-free?

Housing and meal (M&IE) stipends can be tax-free only if you maintain a legitimate tax home and are working a temporary assignment away from it (generally expected to last under 12 months). If you lack a valid tax home, the IRS can tax all stipends. These rules are fact-specific — consult a tax professional.

Do 1099 travel nurses pay self-employment tax?

Yes. Independent contractor nurses paid on a 1099 owe the full 15.3% self-employment tax on net profit in addition to federal (and often state) income tax. W-2 travel nurses do not pay SE tax because their employer withholds and matches payroll taxes.

How much should a travel nurse set aside for taxes?

A common rule of thumb is 25-30% of net (after-deduction) 1099 income, adjusted for your bracket and state. Because no employer withholds for you, pay quarterly estimated taxes to the IRS (and your state) to avoid penalties.

Self-Employment Tax Calculator for Travel Nurses (2025)

How much tax does a self-employed independent nurses / travel nurse pay? A independent nurses / travel nurse earning $100,000 with about $15,000 in business expenses owes roughly $20,838 in total federal tax for 2025 — a 15.3% self-employment tax plus federal income tax — or about $5,210 per quarter. A common rule of thumb is to set aside 25–30% of net income for taxes. Use the calculator below for your own numbers and state.

Independent and travel nurses working on 1099 contracts owe the full 15.3% self-employment tax plus income tax on their net profit. This calculator estimates what you owe and shows the nursing-specific deductions that lower your bill.

Annual gross income (before expenses)

Total business expenses (incl. deductions below)

State

This tool provides estimates for educational purposes only and is not tax advice. Tax rules change; figures are based on 2025 federal rules. Consult a tax professional for your specific situation.

Deductions Independent Nurses / Travel Nurses often miss

Independent and 1099 travel nurses commonly gross $80,000-$130,000+ per year. Remember you pay both halves of Social Security and Medicare (15.3% SE tax) on net profit, plus federal income tax. Set aside roughly 25-30% of net income for taxes, and file quarterly estimated payments to avoid underpayment penalties.

Licensing, certifications & CEUs: State RN/NP license renewals, compact licenses, specialty certifications (BLS, ACLS, PALS) and required continuing education units are deductible ordinary business expenses.
Professional liability (malpractice) insurance: Premiums for your own nursing malpractice/professional liability policy are fully deductible on Schedule C.
Travel mileage & transportation: If you have a valid tax home, business miles between assignments and to work-related errands are deductible at 70¢/mile (2025), or use actual vehicle expenses. Airfare, tolls and parking for temporary assignments also qualify.
Scrubs, equipment & supplies: Uniforms/scrubs not suitable for everyday wear, plus a stethoscope, shoes, PPE, badge reels and other work gear are deductible.
Professional dues & job costs: Nursing association memberships, licensing exam fees, background checks, drug screens, and credentialing costs required to take assignments are deductible.

Common tax mistakes for independent nurses / travel nurses

Claiming tax-free housing/meal stipends without a legitimate 'tax home' — if you can't prove one, the IRS can treat all stipends as taxable income.
Not making quarterly estimated tax payments and getting hit with underpayment penalties.
Forgetting to file nonresident state returns for each state you worked in.
Deducting commuting miles from your tax home to a single long-term assignment (an assignment expected to last over a year is 'indefinite' and disqualifies travel deductions).

How self-employment tax works

As a self-employed independent nurses / travel nurse, you pay a 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, plus federal and state income tax. A common rule of thumb is to set aside 25–30% of your net income for taxes.

Quarterly estimated tax deadlines (2025)

If you expect to owe $1,000 or more, the IRS requires quarterly estimated payments. For 2025 income the deadlines are: April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026. Missing them can trigger underpayment penalties. The calculator above estimates your quarterly amount.

Frequently asked questions

What can travel nurses deduct on taxes?: 1099 travel nurses can deduct license renewals, certifications and CEUs, professional liability insurance, work-related travel and mileage (70¢/mile in 2025), scrubs and equipment, and professional dues. These reduce your net profit before self-employment and income tax.
Are travel nurse stipends tax-free?: Housing and meal (M&IE) stipends can be tax-free only if you maintain a legitimate tax home and are working a temporary assignment away from it (generally expected to last under 12 months). If you lack a valid tax home, the IRS can tax all stipends. These rules are fact-specific — consult a tax professional.
Do 1099 travel nurses pay self-employment tax?: Yes. Independent contractor nurses paid on a 1099 owe the full 15.3% self-employment tax on net profit in addition to federal (and often state) income tax. W-2 travel nurses do not pay SE tax because their employer withholds and matches payroll taxes.
How much should a travel nurse set aside for taxes?: A common rule of thumb is 25-30% of net (after-deduction) 1099 income, adjusted for your bracket and state. Because no employer withholds for you, pay quarterly estimated taxes to the IRS (and your state) to avoid penalties.