If you’re a healthcare professional, knowing the tax deductions for nurses might help you deduct your expenses come tax time. But what exactly can you deduct? This blog post will give you the skinny on some of the most common tax deductions for nurses and healthcare professionals. So read on and see how much you can save!

Working in the healthcare industry is not easy. The grueling twelve or fifteen-hour shifts and long working hours can be stressful physically and mentally. And with so much to do and take care of, taxes are usually the last thing you would want to think about.

Taking care of your taxes and filing for deductions can be overwhelming and confusing. This gets worse if you lack basic knowledge about it. As a healthcare worker, do you often find yourself asking questions like “can I claim tax deductions for my scrubs and stethoscope?” Or “can I write off my travel expenses?” If your answer is yes, this article is for you!

As a healthcare professional, you will have certain expenses that are necessary to complete your job. These expenses are common for most medical professionals. They often need to pay for them from their own pockets. Thus, these expenses are eligible for tax deductions and you can claim them when filing for your next tax returns.

Scroll down to learn about the most common tax deductions for healthcare professionals. 

Medical Uniforms

The IRS allows you to deduct the cost of work clothes if your employer requires you to wear them daily at the workplace but they cannot be worn as everyday wear.

And as a standard protocol, healthcare professionals are required to wear scrubs to work. These scrubs are a total work attire that is not suitable outside the medical facility.

Thus, they are uniforms and you can claim their cost. Furthermore, you can deduct the dry cleaning and laundry costs of your uniform while filing your tax returns.

Additionally, if your workplace mandates you to wear a certain type of shoes to work that you cannot wear anywhere else, you can deduct their cost as well. However, you cannot write off just any shoes you wear or desire to wear to work. That’s because won’t come under the category of uniforms.

Education and Training Expenses

You can also claim tax deductions for any educational or training program that you are pursuing to continue your employment or keep/ renew your medical license.

However, it should be noted that educational expenses that prepare you for a new job or occupation are not tax deductibles. This means that if you are a nursing student, you are not allowed to deduct the cost of your nursing tuition from your tax returns.

Only those educational expenses that are directly related to your current job and enable you to enhance your skills in your current role are tax deductibles.

Vehicle and Travel Expenses

Do you drive from one medical facility to another for your work? Do you transport patients from one hospital to another from your own vehicle or do you make house calls? If yes, then you might be eligible to deduct a certain amount from your tax returns.

The IRS allows you to deduct 16 cents per mile driven for medical moving. Just ensure to keep the necessary receipts and records of the total distance traveled for claiming the travel expenses.

Phone and Internet Expenses

Healthcare workers can claim the cost of the work-related portion of their phone and internet expenses. So, if you use your personal phone or internet for your work, make sure to deduct that portion of the cost while filing your tax returns.

Electronic Gadgets

Do you use your personal electronic gadgets like laptops, computers, or tablets for work-related purposes? If yes, then you are eligible to claim their depreciation cost.

Just like the cost of phone and internet bills, the tax-deductible depreciation cost of your personal devices is also calculated according to the percentage of work-related use.

Stationery and Medical Subscriptions

As a healthcare professional, you can write off all your work-related stationery expenses from your tax returns. This includes the cost of items like pens, logbooks, planners, notepads, diaries, etc.

Similarly, you can also deduct the subscription costs of nursing magazines, medical journals, or books that you use to maintain and upgrade your knowledge.

Medical Equipment, Licensing Fees, and Membership Cost

The cost of medical equipment like stethoscopes, battery replacements, scissors, torches, etc. is also claimable.

Additionally, if you pay any fees to maintain or renew your medical license, then that cost is tax-deductible. This also goes for union dues and membership fees to be a part of any nursing body from your own pocket.

Things to Remember While Claiming Tax Deductions for Nurses

As a healthcare professional, you are eligible to claim deductions for all the above-mentioned items. However, there are certain specific things that you must remember while writing off these expenses from your tax returns.

Employee expenses are limited deductions. This means that as an employee at a medical facility, you can claim deductions only if they exceed 2% of your adjusted gross income. Click here to know more about tax deductions.

If you are working as an employee and your boss/ employer reimburses you for any of these expenses, you cannot claim tax deductions for them.

For self-employed healthcare workers where clients reimburse them for any of the tax-deductible expenses are ineligible to apply for tax deductions.

If you are only reimbursed for a part of the tax-deductible expense, cannot claim the portion you are not reimbursed for.

You must keep all the essential receipts and records to justify your tax deduction claims.

Conclusion

So, there you go! These were the most common tax deductions that healthcare professionals are eligible for. If you are still confused about what you can and cannot claim as tax deductions, we recommend remembering the following three rules to make things easier.

You can claim tax deductions for nurses for items that you have spent money from your own pocket and haven’t been reimbursed for or are directly related to your current profession/ job role/ means of earning income, and you have records, to justify your claims.

In case of any more confusion or doubts, you can consult a professional tax expert and seek their guidance before attempting to write off any items and filing your tax returns.

FAQS

Can nurses write off scrubs on taxes?

Yes, nurses can write off scrubs on taxes. In fact, any profession can write off clothing for work. This includes items such as uniforms, lab coats, hats, and of course, scrubs. You just have to make sure that you have a record of what you purchased and that you are wearing them for work purposes.

How do travel nurses avoid taxes?

There are a few different ways that travel nurses can avoid taxes and benefit from tax deductions for nurses. One way is to establish residency in a state that has no income tax, such as Florida or Texas.

Another way is to establish a home base in a state that has a lower tax rate than where they’re working, such as Oregon.

And finally, some people set up corporations or LLCs to reduce their taxable income. However, each of these methods has its own set of pros and cons, so it’s important to consult with an accountant or tax specialist to see what’s the best option for you.

I’m a nurse working in the UK. Can I still claim tax deductions for nurses?

Yes, you can still claim tax deductions for nurses in the UK. You can deduct any expenses that are related to your job, including travel expenses, uniforms, and equipment. Be sure to keep track of all your receipts and paperwork to support your claims.

What can healthcare workers claim on tax?

Nurses and other healthcare workers can claim a wide variety of expenses on their tax returns. For instance, they can claim the cost of uniforms, shoes, supplies, equipment, and even transportation to and from work.

In addition, most healthcare professionals are eligible to receive a special tax deduction for the cost of caring for a dependent relative. The nurse or healthcare worker can claim this tax deduction regardless of whether or not they’re itemizing their deductions on their return.

Lastly, many nurses and healthcare workers are also able to exclude certain payments made to them from their taxable income. These payments can include things like tuition reimbursement or awards for continuing education.

Can nurses write off stethoscopes on taxes?

Yes, nurses can write off their stethoscope on their taxes. This is a word-related medical device so it qualifies as a tax deduction. There are many other medical devices that nurses can also write off, such as scrubs, gloves, and masks.

Do travel nurses usually owe taxes?

The answer to this question is a little complicated, as it depends on a lot of factors. Generally speaking, though, most travel nurses do end up owing some taxes. This is because the income they earn while working as a travel nurse is taxable income. However, there are a few deductions that you may claim that can help reduce the taxes you owe.

What is the maximum amount that I can claim for tax deductions for nurses?

The maximum amount that you can claim for tax deductions is $10,000. This limit applies to most taxpayers. It covers most of the expenses that you may incur while doing your job. However, there are some exceptions to this limit. Moreover, you may be able to claim more if you qualify for them.

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