3 Major Nurse Tax Deductions You Can Deduct
One of the most rewarding parts of becoming a nurse is your ability to help others. Nursing is one of the most significant jobs on earth - providing people with the care they need when they most need it. Although the hours are long and the work is sometimes exhausting, nurses have a very critical job of giving care. Buying work-related items and paying for them yourself is normal for nurses, midwives, and other health professionals. You can qualify for registered nurse tax deductions for these out-of-pocket expenses and can write them off on their next tax return.
Nurses Income Tax Deductions
You have to consider two different classifications when it comes to taking deductions; employee and self-employed. Employee business expenses are a limited deduction for those who are employees (W2). If you itemize your deductions, and your total exceeds 2% of your taxable income, you can claim them. It is recommended that you consult a tax preparer and licensed tax professional about any deductions you wish to make as an employee.
As a nurse who is an independent contractor or a self-employed individual (1099) the world of deductions opens up a little bit more to you in terms of what you can claim as a business deduction. The freedom and flexibility you enjoy as a self-employed individual are unmatched by ordinary employees. For more information, check out our self-employment tax return guide.
What Can I Claim On Tax As A Nurse?
As a nurse, you may deduct these expenses for nurses income tax deductions while filing your taxes:
Travel Expenses
How often do you visit your clients at home? If you are one of many travel nurses, pay attention! Business-related travel might qualify you for a travel tax deduction, such as attending conferences, meetings, or providing patient care. If you're going to see a patient, you might want to consider the parking, mileage, tolls, and perhaps the public transportation costs. If you drive to work (not counting commute), you might want to maintain your mileage records somewhere. In addition to other business expenses, you may be able to deduct $0.56/mile for these trips.
Licensing Fees
Are there any union dues that you are paying as a nurse? Do you plan on renewing your RN (Registered Nurses) registration? Do you plan on getting reimbursed for the background check fee? You may qualify for a deduction of these out-of-pocket expenses if they are a necessity for you to obtain or maintain your nursing job based on your circumstances.
Continuing Education Costs
Whatever stage you are at in your nursing career-whether you're pursuing your LPN program to become a licensed practical nurse, an RN pursuing a bachelor's degree, or going to school for a master's degree with the goal of becoming a nurse practitioner-you can benefit from this continuing education. You may be able to deduct all or part of the education expenses that you paid for, depending on the manner in which your employer reimburses those expenses. Tax credits can also be claimed for student loan interest deductions or education needed to maintain or improve skills.
Nursing Uniform
Many people cannot deduct their work clothes, but nurses are able to do so to an extent. The cost of scrubs can be deducted as an expense because they are considered nursing uniforms and according to the IRS, you can deduct the cost of uniforms. The cost of scrubs is 100% related to your job.
Moving Forward - Itemizing or Standardizing
You need to learn how to differentiate itemized deductions from standard deductions after you know which deductions you are eligible for. Surely, it is not possible for you to itemize certain expenses on your tax return for nurses, such as your work uniform, and also claim a standard deduction at the same time. In your first step, you should take into account all the deductions you are entitled to. If it exceeds the standard deduction, then you might want to consider itemizing.