Are travel therapy stipends tax-free?
Yes — if you maintain a valid tax home, your assignment creates duplicate living expenses, it's temporary (under 12 months in the same area), and you're far enough from home that commuting isn't practical. If you don't meet these IRS requirements, all stipends become fully taxable.
Learn more →How much are typical travel therapy stipends?
Total non-taxable stipends (housing + M&IE) typically range from $1,500 to $4,000+ per month depending on your assignment location's GSA per diem rates. Your recruiter should provide every line item in writing before you sign.
Should I take the housing stipend or agency housing?
Most experienced travelers take the stipend and find their own housing. More control, usually more money. Agency housing is convenient but almost always worth less than the stipend equivalent.
Read more →What are GSA per diem rates?
Government-published maximum daily allowances for lodging and meals by location. Agencies use these as benchmarks for your non-taxable stipends. Look up rates at gsa.gov/perdiem.
Learn more →Can I keep extra stipend money I don't spend?
Yes. Stipends are fixed payments, not reimbursements. If your housing stipend is $2,000/month and rent is $1,300, you keep $700 tax-free. Same with M&IE — spend less on food, pocket the rest.
What happens without a tax home?
Without a valid tax home, the IRS considers you itinerant and all stipends become fully taxable as ordinary income. This can cost thousands per assignment. Consult a CPA who specializes in travel therapy taxes.
Why is my stipend lower than the GSA rate?
Either the total facility rate isn't high enough to hit GSA maximums after your taxable wage and agency costs, or IRS rules require maintaining a reasonable taxable wage ($20–25/hr typical). If your hourly is well above $25 and stipends are below GSA maximums, ask about adjusting the split.
Do stipends differ between agencies?
Yes. The facility pays the same total regardless of agency, but each agency takes a different margin. Smaller, therapist-owned agencies typically have lower overhead and pass more to you as higher stipends and hourly rates. Always compare offers from multiple agencies.