Tax Home Basics for Traveling Clinicians

What the IRS Means by a Tax Home

According to IRS Publication 463 (2025), a tax home is generally the regular place of business or post of duty, regardless of where a family home is maintained. It includes the entire city or general area where the work is located. The publication's definition therefore starts with work location when there is a regular place of business.

IRS Publication 463 says that if the nature of the work leaves a person without a regular or main place of business, the tax home may be where that person regularly lives. If there is neither a regular place of business nor a place where the person regularly lives, the publication describes the person as an itinerant, or transient. Under that definition, the tax home is wherever the person works.

Temporary Versus Indefinite Assignments

IRS Publication 463 generally describes an assignment in one location as temporary when it is realistically expected to last, and actually lasts, one year or less. For a temporary assignment away from the main place of work, the publication says the tax home does not change. The expectation at the start of work is part of the determination.

Under IRS Publication 463, an assignment in one location is indefinite if it is realistically expected to last more than one year, even if it does not actually last that long. The publication says the assignment location becomes the tax home when the assignment is indefinite. Expected duration therefore matters alongside the time already spent in that location.

IRS Publication 463 also says an assignment that begins as temporary may become indefinite because circumstances change. A series of short assignments in the same location, together covering a long period, may be considered indefinite. When preparing questions for a tax professional, include the full sequence of work in that location and any changes in expectations.

Why It Matters for Living-Expense Payments

IRS Publication 463 states that amounts received from an employer for living expenses must be included in income when an assignment is indefinite. The publication says this applies even when the amounts are called travel allowances and the worker accounts to the employer for them. That rule makes the temporary-or-indefinite determination relevant to questions about those payments.

For a discussion about your situation, bring the assignment dates, the duration expected when work began, any extensions or changes, and the description of living-expense payments. IRS Publication 463's definitions provide the starting point; a qualified tax professional can consider how those definitions relate to your circumstances.

How Per Diem Rates Are Set

The GSA per diem rate guidance explains the rates federal agencies use to reimburse employees for lodging, meals, and incidental expenses on official travel within the continental United States. A standard rate applies to most of that area, while about 300 non-standard areas have individual rates. GSA says most non-standard areas consist of a key city or primary destination and the surrounding county.

GSA typically announces rates for the coming federal fiscal year in mid-August. Its guidance identifies October 1, 2026 as the date fiscal year 2027 rates become the default selection. When consulting a rate, pay attention to the location and fiscal year. GSA's rate-setting explanation and IRS Publication 463's tax-home definitions address separate questions.

Getting Advice for Your Situation

A useful discussion with a qualified tax professional begins with a clear account of where you work and regularly live. Explain whether you have a regular place of business, how long work at an assignment location was expected to last, and whether that expectation changed. If several assignments took place in the same location, describe the sequence together.

Ask which IRS Publication 463 definition fits the circumstances and what further information is needed. These questions keep the discussion focused on the facts of your work and residence. This guide explains the publication's terms and is information rather than individual tax advice.