EBE’s for a Traveling Nurse

I first spoke with Laura in July of 2018. She contacted TaxAudit due to an IRS Notice auditing the Employee Business Expenses on her 2016 Tax Return. There was a balance due of $8,982. Laura was beside herself with worry that this was a bill that they owed. Laura's spouse, Ellie, was a traveling nurse. They had done a lot of research into the tax deductions they could claim when doing their taxes. They followed a Traveling Nurse blog that told them exactly what they could claim and how to claim it. They couldn’t understand where they went wrong.

Even with all that preparation, they were audited. Being a traveling nurse, Ellie had 3-4 month long contracts in different cities around the country.  The contracts included some reimbursement, but not enough to cover all of Ellie’s expenses, and certainly not at per diem or tax code rates. So, Laura and Ellie claimed the difference. The IRS battled us on several fronts: Ellie’s tax home, EBE’s vs should this be Schedule C expenses, and specific expenses necessary as a traveling nurse. It took three responses and more than 800 pages of documentation and support.  In April 2019, they received their final response from the IRS. When all was said and done, Laura and Ellie got a “No Change” letter from the IRS. 

To say they were over the moon would be an understatement. Both Laura and Ellie said that they would never not purchase audit defense. I told them that I hoped that they would never need to use it again. 


**Some names and identifying details have been changed to protect the privacy of individuals.