Here to keep your feet from getting tangled in the details of multi-state employment is Joseph Smith, travel healthcare industry tax professional, with tips and advice on the most common tax issues for traveling nurses.

1. Know that you will pay taxes and file in each work state.

There are some exceptions, but in general, you pay taxes to the state you physically work in.

2. Know that you will pay taxes to your home state on ALL income.

Don’t worry, you won’t be taxed twice. Your home state will give you a credit for what you paid to the work state.

3. When negotiating contracts, remember that tax-free amounts are REIMBURSEMENTS.

You must qualify for tax-free reimbursements for lodging, meals, car and travel. If not, these should be treated as taxable income.

4. Find good tax help.

Since you’ll be working in multiple states and dealing with complicated tax law, find a tax professional who is familiar and comfortable with a mobile professional. The tax chains rarely have preparers who understand the healthcare travel industry.

5. Keep good records.

You or your tax professional will have an easier time preparing your tax return if you have good records. Keep a copy of every contract! You may need it if you get audited, or even to prove your hours to renew your healthcare license. Keep these on hand for six years. If you buy a home, the mortgage company will need a copy of your tax return for proof of income.

The best way to keep track of your assignments is to keep the following:

• A monthly employee expense log
• An assignment organizer
• A minimum mileage log
• A sheet to keep track of your trips home.

Image: Steven Puetzer/Photodisc Collection/Getty Images

In a tough economy, you want to be sure you’re getting the most out of every nickel. Here are four tips to help you streamline your finances as a travel nurse, whether you’re at home or away on assignment, courtesy of financial expert, Joseph Smith:

1. Take advantage of any retirement matching programs offered by your agency.
These programs are “free money,” so contribute at least enough to utilize all of the matching available.

2. Use online bill payment and banking.
It takes too long to forward credit card statements. Most credit card companies offer incentives if you receive your statements and pay your bills online. Online banking helps you keep track of your account without lengthy phone calls and helps avoid overdrafts.

3. Keep emergency funds set aside.
Gaps between contracts can be stressful when there is no money to pay the bills or get to the next destination.

4. Learn to use debit cards and credit cards wisely.
The mobile lifestyle is much easier when there is no cash to tow, but many travelers are not used to relying on credit cards, and the balances can quickly inflate.