Financial planning for nurses.
Travel nursing taxes, shift differential, and PSLF.

Section 1 · Income structure

• Base salary + shift differential (night, weekend, holiday pay, typically 10-25% premium).
• Overtime: time-and-a-half after 8 hours/day or 40 hours/week, depending on state.
• Annual bonuses or retention incentives.

The budgeting challenge: irregular monthly income from shift patterns. Use the fixed-floor method (budget on base salary only, treat differential as variable bonus). See How to Budget: Start with Fixed Expenses.

Section 2 · Travel nursing tax rules

Travel nurses are placed through staffing agencies at facilities away from their "tax home." Travel-nursing pay typically includes a lower taxable hourly rate plus tax-free stipends (housing, meals, travel) verify×DON'T TRUST, VERIFYClaim: IRS rules on travel-nurse tax homes are governed by Publication 463.Verify at: IRS Pub 463 ↗ Source 1 in the list belowTax home requires actual living expenses incurred at a permanent residence elsewhere. Sleeping at a friend or parent's house does not qualify..

The tax-home requirement

• You must incur actual living expenses (rent or mortgage, utilities) at your tax home.
• Sleeping on a friend's couch or using a parent's address does not qualify.
• Without a legitimate tax home, the "tax-free" stipends become taxable income.
• The IRS has increased audit activity on travel-nursing tax arrangements.

Section 3 · Retirement accounts for nurses

Hospital W-2 employees

• 403(b): the 401(k) equivalent for nonprofit hospitals. Watch out for high-fee insurance-company vendors. Use the low-cost vendor in your district. See teachers-finance for the same vendor-selection logic.
• 457(b): available at many hospital systems with the early-withdrawal advantage. Penalty-free post-separation regardless of age.
• Both at once: $49,000 total tax-deferred in 2026 if you max both.
• Roth IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition on top: $7,500 in 2026.

Travel nurses (1099)

Most travel nurses are W-2 through staffing agencies, but some work as 1099 contractors. If 1099, Solo 401(k) up to $72,000 in 2026. See Solo 401(k): The Self-Employed Power Account.

Union nurses

Many union contracts include defined-benefit pensions. Check the contract terms. Pension + 403(b) is possible at some hospitals.

Section 4 · Student loan strategy

Nurses with federal student loans employed at qualifying nonprofit hospitals may qualify for PSLF (Public Service Loan Forgiveness) after 10 years of qualifying payments verify×DON'T TRUST, VERIFYClaim: PSLF requires 120 qualifying payments while employed at a qualifying public-service or 501(c)(3) employer.Verify at: studentaid.gov/pslf ↗ Source 2 in the list belowMost nonprofit hospitals qualify; for-profit hospital systems do not. Travel-nurse placements through for-profit staffing agencies disrupt PSLF eligibility for those months..

NHSC (National Health Service Corps) Loan Repayment Program: nurse practitioners and nurse-midwives in qualifying shortage areas can receive up to $75,000 in loan repayment for 2-year commitments.