6 Ways to Ensure Success as a New Grad Travel Therapist

Written by Whitney Eakin, PT, DPT, ATC

1. Do your research and maintain realistic expectations.

Travel therapy is amazing… most of the time. As with anything, it can have its pros and cons. While most parts of being a travel therapist are an incredible adventure, there are still parts that aren’t always fun. It’s important that you do your research to understand all the nuances that go into being a travel therapist before jumping in. This goes for anyone looking into travel therapy, but especially new grads. If you plan to take a travel job as your first position after graduation, you need to know what to expect.

We recommend going into travel therapy with an open and adventurous mind. Not every assignment will be perfect; not every city will be your favorite; you won’t always have the easiest time with housing; there’s always a chance your contract could get cancelled; and sometimes you may question your decision to take on the life of a travel therapist. But if you go into this journey of travel therapy knowing this up front and are willing to roll with the punches for the sake of traveling the country, earning more money, and having unforgettable adventures, you will be successful and join the thousands of other healthcare travelers out there living and loving this lifestyle!

2. Connect with great travel therapy companies and recruiters.

If you talk to any travel therapist, they’ll tell you that your recruiter and company can make or break your experience with traveling! This is of utmost importance for new grads, because you will want support and mentorship as you begin to look for your first few travel jobs. You need a recruiter who gets you, your wants, and your needs as a new grad therapist. You want a recruiter who will be in your corner, going to bat for you with your best interest in mind, not just the best interest of the travel company or the client (facility). Many travel therapy companies offer some form of new graduate mentorship program, whether in the form of a mentor by phone or by placing you at “new grad friendly” facilities. These are things you will want to consider when choosing a company.

For more information on how to best choose a travel therapy company and recruiter, check out this article, or send us a message and we can give you personalized company and recruiter recommendations for you based on your situation!

3. Find a great first travel therapy job.

Your first few travel therapy jobs (or in the case of a new grad, first jobs period) will be crucial in your success as both a clinician and as a travel therapist. Sadly, we have heard horror stories of people having one terrible experience with travel therapy that turned them away from traveling again, and pushed them to take a permanent position, even though they had planned to continue traveling. This is unfortunate, and usually the result of them not knowing exactly what they were getting into on their first assignment and/or having a bad recruiter.

For your first job (or first few jobs), we recommend you work closely with your recruiter(s) to find a facility that is going to provide a supportive environment for you as a new grad. This may include having another therapist of your same discipline on staff (another PT, OT, SLP, PTA, or COTA); having more of a ramp up period in your caseload with training provided; and making sure the productivity expectations are reasonable. These are all important things to find out during your phone interview. For specific questions to ask during an interview, check out this article.

As mentioned before, a great recruiter should be able to assist you in this process of identifying supportive facilities. They may even have prior experience with facilities where they have placed new grads before that have been successful. Most importantly, a good recruiter will support your decision to decline an offer if it doesn’t sound like a good fit for you, and they will not push you into taking a job that’s not right for you just to secure a placement for themselves.

4. Don’t be afraid to ask for help, and never stop learning.

As a new grad travel therapist, it is important that you are ready to be an independent clinician and not have your “hand held,” but at the same time you shouldn’t be afraid to ask for help and mentorship when you need it. This could be from your co-workers at your facility; through the clinical liaison provided by the travel company by phone; and even by reaching out to former professors, clinical instructors, and classmates for consultation when you encounter tough clinical situations.

Also don’t forget to utilize a variety of resources (textbooks, CEU courses, websites, blogs, podcasts, Facebook networking groups, etc.) to continue learning once you start practicing on your own. Being a student working under a clinical instructor is very different than being out on your own! There is a huge learning curve when you first get started. You don’t have to know it all when you first start practicing, regardless if you choose to take a travel or a perm job right out of school!

5. Stand up for yourself and your professional license.

New grad or not, you worked very hard to get to the point of being a licensed clinician! Regardless of whether you’re in a travel job or perm job, you need to maintain integrity, be ethical, and follow the law. If you are being asked to practice in an unethical or illegal manner, you must stand up for yourself and practice the way that you feel is best. You are ultimately responsible for your actions and your license. Do not be dragged down by poor management or not-so-great co-workers.

There are many examples of how you could be placed in a bad situation where your ethics and legality are tested. For example, starting at a new clinic where they want you to sign off on documentation for patients that you haven’t seen before, or for visits that occurred before your start date. This can be a common event when you’re filling in as a traveler. It’s important you do not sign off on anything for which you were not present, including co-signing assistant notes. Another example would be feeling pressured to work off the clock to get your documentation done, or add additional time to your evaluation codes to account for documentation time, which is sadly a very common practice in many Skilled Nursing Facilities. These things are illegal, and regardless of what the other staff “has always done,” if it doesn’t feel right to you, it’s probably not! We would encourage you to reach out to an unbiased third party to discuss any potential ethical or legal questions you may have. Again that could mean reaching out to the clinical liaison by phone or to a former professor or clinical instructor.

If you’re facing ethical dilemmas or problems in your facility, don’t be afraid to talk to you director of rehabilitation or your recruiter if appropriate. You can’t always predict how a clinic will be before you start working there, but you can always get out of a bad situation if you are being asked to practice in an illegal or unethical way.

6. Work smarter, not harder.

There are some great ways you can optimize and be an efficient therapist, without always going over and beyond. This can be especially important when you’re starting out as a new grad travel therapist. Often when you start as a new grad, you want to do everything perfectly, including doing all the fancy treatment techniques and being extremely thorough in your documentation. But sometimes for the sake of time management and being successful at a new clinic, you need to go back to the basics.

Don’t overachieve on documentation so you can maintain good time management. Just make sure you document the appropriate amount, but don’t go over and beyond or be too wordy. Time management is going to be a huge key to success as a new grad travel therapist, and you definitely don’t want to be working off the clock to get notes done.

Focus on functional and effective treatments, while emphasizing building a strong patient rapport. Don’t worry too much at first about using every new fad treatment out there. Often times it’s your relationships and demeanor that matter the most to be successful and well-received, by both your patients and your co-workers, not how good you are at the latest manual therapy techniques and the coolest exercises.

Take advantage of co-treatments when applicable in an inpatient setting, to learn from your colleagues from other disciplines and get ideas. This can be extremely helpful as a new grad, especially in a travel therapy position where you’re not only learning how to be an independent practitioner, but you’re also having to learn a new location, staff, caseload, etc!

Last, do no harm! Focus on being the best therapist you can be, while ensuring you put patients’ health and safety first and foremost. It’s better to do a basic treatment, or do nothing at all, than to do something you’re uncertain about and cause harm to a patient.

Conclusion

Traveling as a new grad can be a wonderful experience and a great way to get ahead start on your finances, but it’s vital to go in well-informed and with realistic expectations about what the process will entail. Finding a great company and recruiter is paramount to your success and sanity as a travel therapist. Be picky about your first job to make sure that it’s a good fit for you and will provide you with the best opportunity to succeed. Don’t be afraid to reach out to other therapists both in person and online for help or ideas with regards to patient care, and spend some time continuing your education to be the best possible clinician. Always stand up for your ethics and protect your license. And finally, don’t burn yourself out by working long hours being a perfectionist with documentation and treatment. Of course, include the key components in your notes and provide sound treatment methods, but it’s important to be efficient with your time to have a good experience as a travel therapist.

If you have questions about anything regarding getting started with your travel therapy journey, feel free to contact us. If you need help finding a great recruiter and company to help make your travel therapy career a success, we can help you with that as well.

How Much Money Do Travel Therapists Make? The Comprehensive Guide to Travel Therapy Pay

Written by Jared Casazza, PT, DPT

Often the reason that people choose to pursue a career as a travel therapist, or even just decide to work a few travel therapy contracts, is to make more money. For people coming out of school with massive student loan debt, finding a way to deal with that debt is a primary concern, and travel therapy is a great way to make more money especially when starting out as a new grad. This leads to the most common question people have when first researching the pros and cons of travel therapy: How much money do travel therapists make?

Understanding Pay Differences for Travelers

Travel therapist pay is a little different from that of permanent full time positions, and therefore it commonly leads to some confusion for those first looking into pay differences between travel and permanent positions. Travel therapists’ compensation is made up of a combination of taxable pay and untaxed money (stipends for housing, meals, and incidentals) assuming that you meet the requirements for receiving the untaxed stipends. Since part of the money is untaxed, this leads to significantly higher net pay for a travel therapist. This is best illustrated through examples of each scenario.

Permanent Job Pay

First, let’s break down what a traditional pay package would look like at a permanent physical therapist job. This scenario would be comparable for an OT or SLP job as well. For PTA and COTA, the values would be lower, but the principle is the same.

Many new grads PTs accept a job with hourly pay in the $30-$35/hour range, but of course this can vary depending on the setting and the area of the country as well as your negotiating skills. I’ve talked to physical therapists that have taken a permanent job as a new grad making as low as $20/hour and others that have negotiated $40/hour, so the true range is massive, but around $30-$35 seems to be the average. We’ll take the top of that average range and find the gross yearly pay for someone working a permanent full time job making $35/hour:

  • $35/hour X 40 hours per week X 52 weeks per year = $72,800 annual salary

Gross pay is pretty straight forward and simple to understand, but determining how much of that gross pay you actually get to keep (i.e. net pay) is harder to understand and often overlooked when therapists talk about their hourly compensation or salary. Let’s look at how much of that money is yours after Uncle Sam takes his cut. The total percentage will depend on where you live, but on average across the country, a person making $75k is going to have about 25% taken out for taxes.  Click here for more information on tax rates in major cities across the country.  Here’s a look at the permanent physical therapist’s net pay after taxes based on the average 25% tax rate:

  • $72,800 X .75= $54,600 annual salary
  • $54,600/52= $1,050/week (if divided out into weekly pay in order to better compare to travel jobs )

This is an approximate bring home pay per week based on a $35 per hour job working 40 hours per week.  If you have offers for higher salary positions than that, feel free to use the calculations above to estimate your pay.  Note that all 401k (traditional), HSA contributions as well as all medical, dental, life, disability costs will come out of the gross salary.

For a more specific example we’ll use Virginia’s state tax rate. Not only is this where Whitney and I live and maintain our tax home, but it’s also near the middle of the range as far as state income taxes go, which makes it closer to the average for everyone. Pay Check City has a great tool to use for your specific scenario and is the site I’ll use to calculate the take home pay below.

paycheckcity example.png

$1,024/week would be the weekly take home pay for a permanent physical therapist in the above scenario who lives in Virginia, which is pretty close to the $1,050/week using the 25% rule of thumb above. For quick calculations, multiplying your salary or hourly rate by .75 is a good way to get an estimate of how much of your gross pay you actually keep.

Travel Job Pay

Now let’s take a look at how travel therapist pay differs. Travel pay consists of a few different parts:

  1. Hourly Rate (taxable)
  2. Housing allowance (not taxed)
  3. Meal and incidental allowance (not taxed)

Travel pay will generally be presented in a total gross or net weekly amount. If a gross weekly pay number is presented, then that would include the hourly taxable rate x 40 hours, then adding in the housing, meals, and incidentals stipends. If the net pay number is given, then that is usually calculated using the 25% tax rule of thumb above, which as we saw with the specific example isn’t always accurate, but it’s a good estimate of what the traveler’s tax rate might be. This would be gross pay x .75 then adding in the housing, meals, and incidentals stipends. If you know that your tax rate is different, for example if you have a family, then when a recruiter presents you with a gross and/or net weekly pay number, you need to be sure to run the numbers based on your tax rate.

Here are examples of two potential travel PT pay packages that Travis recently received to further help illustrate how travel therapist pay actually works:

Position 1:

  • Hourly rate: $20/hour (taxed)
  • Housing allowance: $630/week (not taxed)
  • Meals and Incidentals allowance: $230/week (not taxed)

Total take home pay (net pay using 25% rule of thumb above for the hourly wage) per week before deductions for benefits: $1,460 per week

Position 2:

  • Hourly rate: $20/hour (taxed)
  • Housing allowance: $730/week (not taxed)
  • Meals and Incidentals allowance: $330/week (not taxed)

Total take home pay (net pay using 25% rule of thumb above for the hourly wage) per week before deductions for benefits: $1,660 per week

How are Hourly Rates and Stipend Amounts Determined?

You may be looking at the travel pay package examples above and thinking, “If the stipends aren’t taxed, then why not make them as high as possible with a lower hourly wage to maximize net pay?” That’s a great question and something that I wondered when first starting out, which led to me doing a lot of research on the topic. There are a couple of reasons why this is illegal based on IRS tax laws.

The taxable hourly rate should be a reasonable amount for the job position in order to avoid “wage recharacterization.” To read the IRS definition of wage recharacterization, check out this link, but basically it means avoiding taxes by changing compensation from a taxable hourly wage to a nontaxed stipend. There is debate about what a reasonable wage is for various therapist positions, and it’s always best to consult a tax expert if you’re in doubt, but us here at Travel Therapy Mentor (all of whom are travel physical therapists) choose to keep our taxable wages at $20/hour or above to be safe and not take any risks as far as wage recharacterization is concerned for a physical therapist. This number may be different based on your profession and comfort level with the IRS law interpretation.

The other reason it isn’t possible to have massive stipends and a very low taxable wage is due to the GSA guidelines. The GSA determines the maximum allowable stipends for housing, meals, and incidentals in different areas throughout the country, and it applies to anyone traveling for work, including travel therapists. These numbers vary drastically depending on the area of the country you’ll be working in due to variance in the cost of living in each location. Keep in mind that these are the maximum amounts and not necessarily how much you will receive in stipends for that area. Depending on how much the facility that you’ll be working at as a traveler is able to pay for the position, you may receive significantly less than the maximum amounts. We always consult the GSA website before accepting a job offer to make sure that the stipends we will be receiving are not above the maximum amounts for that particular area.

These guidelines exist to keep people honest and not allow people to take advantage of the tax code, which is a good thing even though it’s a bummer that we can’t increase our pay more by paying even less in taxes as travel therapists. This leads to the next topic: what offers can you expect to receive as far as pay is concerned as a travel therapist?

Average Pay for Travel Therapists

Just as with permanent positions, travel pay can vary significantly depending on setting and location. I’ve talked to other physical therapists that make as low as $1,200/week take home pay and others that make as much as $2,200/week take home. That’s quite the range! And again, this will vary based on your specialty (PT, OT, SLP, PTA, COTA).

In general, the highest paying contracts are seen with home health and lowest paying are skilled nursing facilities, in our experience. Also in general, jobs on the west coast pay more than the east coast, and jobs in rural areas pay more than cities and urban areas. These observations were a surprise to us when starting out, since this is often different than the factors affecting pay in permanent positions. Taking the above into account, it’s easy to see why someone working a home health job in a rural location in California would make a lot more than someone working a skilled nursing job in Richmond, VA. Another factor that affects pay significantly is how desperate the facility is to fill the position quickly. Whitney and I once found contracts on the east coast at a wonderful outpatient facility in a great location that paid us very well because they needed the positions filled very quickly and we were ready to go!

With the above factors in mind, an average pay range for a traveling physical therapist is between $1,600-$1,800/week after taxes in our experience based on the US as a whole and all settings considered. Whitney and I have personally averaged around $1,650/week after taxes over the past three years while taking contracts exclusively on the east coast and almost always in outpatient facilities. The range has been between $1,500/week to $1,900/week.

We don’t recommend any traveling PT’s, OT’s and SLP’s, even new grads, take pay packages less than $1,500/week after taxes in any area. Some companies and recruiters will do their best to take advantage of new travelers, new grads especially, by offering them very low pay, knowing that they don’t really have a baseline of what pay should be yet as a traveler. This is why having a mentor in your corner as a new traveler is vital to keep from getting taken advantage of when starting out! Reach out to us with questions and for recruiter/company recommendations and we will be happy to help you!

How to Accurately Compare Pay for Travel Jobs to Permanent Positions

When comparing pay from a travel job to a permanent job, I often find that people get confused by the weekly take home amounts quoted for travel contracts. An individual that has never taken a travel contract will see $1,650/week take home, multiply that by 52 (weeks in a year) and then compare that to their permanent job gross salary and determine that travel isn’t worth it.

As we figured out above, that is no where near an accurate comparison. You have to either convert the gross permanent pay into a weekly take home amount (using the 25% rule of thumb above or the PayCheckCity site) as we did above, or convert the weekly take home pay of a travel therapist into an equivalent amount if it was a permanent position. The second is a more difficult calculation with no easy rule of thumb since tax rates increase significantly as pay gets higher, but luckily PayCheckCity makes it much easier using their “Gross Up” calculator. Let’s see what gross pay you’d have to make at a permanent job to equal the $1,650/week after taxes that Whitney and I have averaged while traveling.

Paycheckcity example2

We would have to make a staggering gross pay of $2,390/week at a permanent job to bring home the same $1,650/week take home pay that we have while traveling! That’s the equivalent of $60/hour or a salary of well over $120,000/year at a permanent job! When expressed in these terms, it’s easy to see how much more lucrative travel therapy is over a permanent job and how I was able to save over $100,000 in 1.5 years as a new grad travel therapist.

Based on our experiences and the hundreds of others travel therapists that we have talked to and mentored, it’s not unrealistic for a new grad travel therapist to make 1.5-2 times as much as they would if they took a full time permanent job right out of school.

The Bottom Line on Perm vs. Travel Jobs

It is important to remember that despite the significantly higher pay, there are some trade offs to traveling, which Whitney did a great job of outlining in her pros and cons article mentioned above. The big downsides to remember in terms of pay are that travel therapists don’t get paid time off for vacations like permanent therapists do, and it can be difficult to move from place to place in only a weekend, meaning that sometimes unwanted time off between contracts is inevitable. These factors eat into the pay of travelers, but even so, it is still significantly higher with all things considered.

I hope this helps clarify the differences in pay for permanent vs travel jobs. Please contact us or ask questions in the comments below if we can help you further understand pay, or if you have suggestions for travel topics for us to cover in the future.

What has your experience been as far as pay for permanent jobs or travel jobs? Do the numbers in the article match what you’ve seen? Let us know in the comments!

To Extend, or Not To Extend a Travel Therapy Contract?

Written by Travis Kemper, PT, DPT

Should I stay or should I go now?

How do you know when to extend a contract or when to move on? There is no definitive answer to this.

My fiancée Julia and I have extended contracts anywhere from 2 weeks in order to better accommodate our travel plans, to a full thirteen weeks at one contract. In general, we have found that we are usually ready to move on at the thirteen week point whether we extended or not. In all cases of extensions, we have been persuaded to stay partially by the facility having a desperate need for PT coverage.

In the future, we will only extend if it is in our best interest, and we will always ask for an increase in pay with an extension. Thus far we have gotten up to $200 net per week bonus pay with an extension.

Know Your Preferences

An extension is always a personal decision, and you need to know yourself. Many times a facility will approach you very early in the contract for an extension, so you need to understand your own preferences.

If you are like us, you may get an itch to leave starting about 10-12 weeks in. Extending causes that itch continue for the entire extension period.

However, many travelers, such as Jared and Whitney,  find they would rather do 4-6 month contracts, or even up to 1 year so they can get comfortable with the position and location before they move on, as well as earn guaranteed money and not have to deal with the hassle of moving. If that is you, extending can be a great way to earn some more money and have a little more stability in your life.

Signs That The Facility May Want an Extension

Sometimes you can get a feel during the interview if the facility is the type to want a traveler to extend or not. You can also sometimes get a feel for whether they are likely to keep you for the duration of your contract or if there’s a possibility your contract could get cut short.

If you can find out the reason why they need a traveler in the first place, that will give you a good idea. For example, maybe it’s a rural area and they have been using travelers back to back for a year or more. In that case, there’s a good chance you could stay there longer if you wanted to. Or maybe it’s not a rural area, and they’re still using travelers back to back and can’t find a permanent employee. Maybe then you should be hunting for reasons why they can’t keep permanent staff.

On the other hand, if someone just quit and they are rapidly trying to find a permanent employee and conducting permanent interviews, there’s a chance they might cut your contract the first chance they get when someone permanent is hired. This also might not be an ideal situation for you, especially if you are traveling a long way to take the job.

It’s a good idea to feel out these things early on, as it can definitely give you a good indication of what type of situation you’re getting into as a traveler. But, don’t always fear the rotating-traveler, begging for you to extend facilities. They’re not all bad, and you could have a great experience there and want to extend.

Do you have questions about contract extensions? Send us a message and we can chat! Want to tell us about an experience you had with a contract extension? Leave a comment below!

Opportunity Cost: Passing on a Travel Job and Having Unplanned Time Off

Written by Travis Kemper, PT, DPT

What is Opportunity Cost?

Opportunity cost is an important economic term that most of us rarely think about. An opportunity cost is quite simply a lost benefit from choosing one option instead of another.

Opportunity Cost and Travel Therapy

Why is this important and what does it have to do with travel therapy? We’ve seen a number of travelers post about a potential job opportunity that they were passing on due to the pay being too low for them by $100 or $200 per week. They say if the pay was higher they would take the position because everything else sounded great!

So let’s analyze the opportunity cost of passing on a position without a replacement position readily available:

  • John is a new grad traveler and receives an offer of $1500 per week that starts 10/1.  John turns down the position, stating that his minimum acceptable pay is $1650 per week because he wants to pay down his loans as fast as possible.  Good news, John finds a position paying $1650 per week that starts just 2 weeks later on 10/15, and he takes this position.
  • Sally also is traveling with the goal of paying down her loans quickly.  Sally takes the position for $1500 per week and starts 10/1.

Who makes out better financially?

  • Sally makes $1500 x 13 weeks= $19,500 net pay, 13 weeks after 10/1
  • John took 2 weeks off waiting for that bigger paycheck. 13 weeks after 13/1, John earns $1650 X 11= $18,150.

The opportunity cost for John is $19,500 – $18,150 = $1,350 in lost income, due to waiting for the higher paying position.

Conclusion

The moral of the story is that higher pay isn’t always higher pay if you have to wait to start. This is a very simplistic example, but as you can see, continually passing on “low pay” will hurt you financially in the long term if you take extra, unplanned time off.

We recommend you take the right job instead. Pay is important, but sometimes the highest paying positions can also be the least desirable positions.

If you have questions about a travel therapy position, pay packages, or need help in your travel therapy journey, please shoot us a message and we would be happy to help!

Why Choose Travel Therapy?

Written by Travis Kemper, PT, DPT

My “Why” For Travel Therapy

Everyone’s “why” will be very personal and may be very different. My fiancée Julia and I are traveling for the freedom it provides. We enjoy not being tied down to one geographic location and not being obligated to work 50 weeks per year. There are too many things we want to do with our lives to settle down in a permanent position.

We want to travel, not for 2 weeks each year, but long enough to immerse ourselves in the culture of a new place. We would someday like to do international mission trips as well where we can use our skills and training to help others that have tougher challenges and decreased access to appropriate healthcare.

What’s Your “Why”?

You don’t have to want the same things I want, but you should know your why. Maybe it’s to travel, maybe it’s to pay student loans off, maybe it’s for financial independence. It could be that you completed 3-4 internships and have no idea what setting you want to practice in because your profession has too many awesome options (I can relate to this)! Maybe you’re burnt out in your current position and need a change of scenery.

Whatever your why is, you hopefully take it into consideration before embarking on a traveling or permanent career decision.  Your why can, and hopefully will, change as you grow as a person, but your why can always provide you with direction in your career and life.

So, what is your “why” for considering travel therapy? Shoot us a message or leave a comment below. We’d be happy to help you get started on your journey to pursuing travel therapy today.

Travel Therapy: What is a “Tax Home”?

Authors: Travis Kemper, PT, DPT; Jared Casazza, PT, DPT; Whitney Eakin, PT, DPT, ATC

What is a Tax Home?

If you are just starting out in travel therapy you may not be familiar with the concept of a “tax home.”  Basically, a tax home is your primary residence, where you live and/or work. When you’re working as a travel therapist, having a tax home allows you to take housing and per diem stipends provided by travel therapy companies without having to pay taxes on them due to the stipends being a reimbursement for costs incurred at the travel assignment location.

This is a major benefit for you and greatly increases your potential total compensation, if housing costs are kept at a reasonable amount, when compared to a permanent job, where all your income is taxed. This is the main reason why “take-home” pay (otherwise known as your after-tax pay, the money that actually goes into your bank account) as a traveler is higher than pay in permanent jobs.

But, maintaining a proper tax home is a little more complicated than just saying you “have” a permanent residence.

The Basics of Maintaining a Tax Home

To be allowed to take the untaxed stipends, per IRS guidelines, you need to be able to demonstrate at least two of the following three criteria:

  1. You must maintain a place of permanent residence and pay expenses there (i.e. rent, own/mortgage, pay bills, pay taxes, etc.) while ALSO paying expenses at your travel location. This is called “duplicating expenses.”
  2. You must not abandon your tax home. Generally speaking, you should return there at least 30 days per year but these days don’t have to be consecutive.
  3. You must still conduct business in the area of your tax home. For example, you have a PRN job there or maintain some type of other business there.

The third criteria is a little vague, as some interpret “conducting business” as having bank accounts and credit cards, car registration and insurance, and voter registration associated with the tax home, not specifically working in the area.

Without meeting at least 2/3 of these requirements, you would be considered an “itinerant worker,” and all of your income will be taxed.

There is nothing wrong with having all of your income taxed, and you may still come out ahead this way as compared with a regular, permanent job. But, we like to keep as much of our money as possible, so qualifying for the tax free stipends is ideal provided that maintaining your tax home isn’t so expensive that it negates the benefit.

To find out more about tax homes and all things about travel taxes, we recommend you check out the website TravelTax.com/traveler.html. (Specifically, scroll down to the section “how to keep a tax home”). This is a wonderful website where we have all learned a significant amount over the years.

What Are Some Strategies to Keeping a Tax Home?

Of course if you already own a home/have a mortgage, or rent an apartment, these can be maintained as your tax home. But this method can be more costly and also more complicated since you may not have someone to look after your place while you’re away. You may be thinking you could rent out your house while you are gone, but this is not advisable unless you specifically state in the lease agreement that you would maintain at least one room in the house as your own and you stay in that room while in the area (at least 30 days per year as mentioned above).

Perhaps a better option is renting a room out from your parents or a friend, which in our opinion is great way to maintain your tax home. Go on Craigslist, see what a comparable room rents for, and pay your family/friend to rent the room in their house. It’s also recommended that you have a contract written and signed. They will have to claim it as income on their tax returns, but they can keep the extra income to help around the home. That is the simplest way, and that is what we have been doing since starting to travel. As mentioned by Joseph Smith at Travel Tax, you ideally would also want to work in this new area for a while before traveling in order to solidify this new area as your tax home.

A more unique strategy that Julia and I are considering doing next year is house hacking for our tax home. House hacking is simply performed by purchasing a multi-unit home (duplex, triplex, quadplex), and renting out the other units, while you live in one unit.  Your tenants can effectively pay your rent and pay down your mortgage at the same time, enabling you to live for free or dramatically reducing your housing costs. You can find more information on house hacking here.

Do you have a different creative way of keeping a tax home? Do you have questions about tax homes? Send us a message and we can chat!

Travel Therapy: An Alternative Lifestyle

Written by: Whitney Eakin, PT, DPT, ATC

An Amazing Adventure

If you had told me in 2015 when I graduated from physical therapy school that at 3 years into my career I would be working only 6 months out of the year, taking a 5 month long trip around the world, with a couple weeks off at home, while barely touching my savings, I certainly would not have believed you! But here I am, doing just that. And I think my life will look a lot like that for the next few years, not just this year.

Making the choice to pursue traveling physical therapy has been life changing for me. And I’m not alone. Many therapists and other healthcare professionals have tapped into this role and aren’t looking back!

How Is This Possible?

Many know that as a traveling therapist, you make more money. How you choose to spend this extra money can dramatically change your lifestyle.

Personally, my boyfriend Jared and I have chosen to live frugally, and for 3 years we worked back to back to back contracts only on the East Coast of the US, minimizing unpaid time off. We have been saving up to take this amazing 5-month trip to over 10 countries in Europe, Africa, and Asia. Between the additional income we’ve been able to earn as traveling physical therapists, making early investments to produce passive income, as well as utilizing credit card rewards and other travel hacks, we have been able to take this trip with only a small impact on our total net worth.

Other travel therapists choose to take time off between contracts to take shorter trips, perhaps a week or so to explore part of the US while they travel from one contract to the next, or a couple weeks here and there to take trips out of the country. This is also a great option and is all possible with the flexibility and extra income that travel therapy provides.

An Alternative Lifestyle

By choosing to be travel therapists and go out of the country for half the year, we have perhaps “given up” some other things that many of our friends at home have, such as having a house, having kids or pets, or being in close proximity to family. We hope to enjoy those parts of life at a later time, but for now we are so happy with the flexibility and endless adventures that our lifestyle choice has afforded us!

Plus, no two travel therapists are alike. We know travel therapists with homes, and children, and pets, who get to see quite a bit of their family. The best part about being a travel therapist is lifestyle flexibility!

The Bottom Line

If you’ve been considering pursuing travel therapy, all I can say is give it a try! The best part about travel therapy is you can do just one 13-week contract and not be tied down to being a traveler forever. If you try it and it doesn’t work out for you, then you can always take, or return to, a permanent position. But, you may just find that an alternative lifestyle is right for you too. It’s been the best choice of our lives, and I wouldn’t trade it for anything!

Travel therapy may not be for everyone, but if you can make it work for you, it can open the door to financial freedom and unlimited adventure!

If you have questions about starting your travel therapy journey, please reach out to us and we’d be happy to help get you started!