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.

Get More Resources By Nursepective – Get helpful tips and guides on the different nursing-related topics whether you are a nursing student or a new nurse who is searching for some opportunities.

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The nursing profession is in high demand, and it provides an excellent platform for practical students to get the hint. Even as per the government records, nursing as a profession is projected to be the second most popular among the students who bring their experience from abroad and students across the nation.

Why is nursing such a great profession? Why have nurses for many years now been rated the most trusted profession? You might already be thinking about a lot of answers to these questions, but I will tell you a few.

The reason nursing is such a great profession has to do with more than just medical tasks. It has the ability to give hope and make a real difference in someone’s life.

Nurses are there at the bedside to counsel patients and their families at the worst phases of their lives. They are there to comfort and provide support during devastating diagnoses and are also there to celebrate with them when they receive good news. Thus, they have the ability to become trusted confidantes and truly care for their patients.

Students who decide to take nursing as a profession choose to process complex health problems, countless hours of studying, integrating knowledge of nursing research, training, ethical-legal issues, and economics as they influence client health outcomes.

The course gives values, concepts like grief and loss, palliative care, and death and dying and applications for adults in later life. That’s why nursing is considered one of the noblest professions.

Keeping this aspect of nursing aside, attending these expensive nursing colleges could be a problem even if you have a student loan as the debts are pretty high. Accomplishing monetary freedom is the goal of many people and nurses sure are part .

Having financial freedom includes having enough financial savings, investments, and enough money to live life in a way you want for yourself and your family. Unfortunately, the fact is, not too many people can achieve it.

Many nurses don’t feel that they have proper job security and competitive pay. They are burdened with high educational fees, increasing debt, financial emergencies, and other issues that keep them from reaching their goals.

They need to have proper savings or take out a loan to pay, as life and nursing school are also expensive.

Here are some tips that will help nurses to achieve financial independence.

#1. Set Life Goals

What is monetary freedom to you? What do you want from your life? A desire is not a big thing to ask if it is well planned, so get specific.

Write down all your goals and desires, get specific about them. Write down how much money you should have in your bank account to achieve all your objectives.

The greater your specific goals, the higher the chance of achieving them.

#2. Make a Budget

Making a month-to-month household budget—and trying to stick to it—is the satisfactory way to guarantee that all payments are paid, and financial savings are on the right track.

It’s additionally a routine that reinforces your desires and bolsters resolve in opposition to the temptation to splurge.

#3. Find Daily Side Gigs

If you need an extra income despite having full-time work, then a daily side gig can help you pay down your debt. You could try to work as a per diem nurse to supplement your income or just pick up overtime at your job.

If you are looking to explore other side gigs outside nursing, there are a plethora of options out there for you. From starting online stores to using money-making apps to get cash back from your purchases. You can also monetize the freelancing skills that you have on sites like Upwork or Fiverr to make an extra income. Check out our side hustle ideas for nurses page and our blog for foolproof business ideas for nurses to explore the various options available to you to start a side gig that has a prospect of blossoming into a full blown business.

You may also apply for a variety of pre-nursing jobs or internships if you are a student. It will not only assist you financially, but it will also offer you more experience.

These things also add a new experience to your resume. They give you the chance of being an ideal candidate for future jobs.

Wondering how to find per diem side gigs? There are some great apps that are easy to use. They can help you find and pick shifts at places you want to work.

You can practice, browse, and pick out shifts from a cell app and pick the days, times, and centers that are just right for you.

#4. Save for Your Retirement/Future

There will be expenses in your life and keeping an amount out of your salary for your future could be a difficult task. But to maximize your retirement and for a better future, you should consider saving at the very beginning of your career or even sooner if you have the ability to do so.

You can plan your budgeting strategies and can take help from online banking and budgeting and investment apps. I have been using Coinbase and learning about investments which have helped me diversify my portfolio for investment. Check out Coinbase. Give yourself the chance to learn about investments that will help you save for a stress-free and debt-free retirement. Join Coinbase with the link and get a free $10 towards your investment.

Budgeting apps will help you track your expenses, no matter how small or big they are.

#5. Decide When to Cut Hours and When to Make Purchases

Taking leave from your work to spend some time with yourself or your family is the right thing to do. However, do it only if you planned it. Take the leaves that are only necessary. Work extra hours for a period of time. This will help you put more money towards your debts and stack up some savings.

The same goes for purchases. Cut down on unnecessary purchases thus minimizing your total household overhead costs.

#6. Find Free Ways for Self-Care

Working towards self-care is an important part you must follow in dealing with your stress. However, these self-care products and hobbies come with high expenses and thus really affect your financial freedom.

It often looks like you need to select between your financial and intellectual or physical health. Still, there are ways to participate in less-priced and easily affordable, pressure-relieving activities.

Some of these self-care activities are practicing mindfulness by doing meditation, going on a walk, dancing, knitting, becoming a member of an ebook club, knitting, and gardening. These all are examples of low-price activities that permit you to be stress-free and take your thoughts off of work in a laugh and relaxing manner.

You also may consider well-being apps such as the Calm app or TaskHuman. These apps offer low-cost alternatives to high-priced offerings like yoga and meditation.

#7.  Pick A Skill That’s Gratifying—And Remunerative

Whether or not you’re a new nurse graduate or you’ve been inside the area for years, now might be a perfect time to replace a uniqueness or place of business with higher long-term possibilities for pay and advantages.

Thus, picking up skills that are gratifying and lucrative will help to build financial freedom for yourself in the future.

To Sum Up!

Nursing is a rewarding and challenging profession, but it can also be financially demanding. With the right budgeting strategies in place, you’ll never have to worry about not having enough money for retirement or your future.

Find out how to save without sacrificing your health by picking up skills that are gratifying as well as lucrative so that you’re always building financial freedom.

We hope this article has been helpful. If you want more tips on managing finances while working full-time or starting a new career path into nursing then reach out anytime!

FAQS

Can I work as a freelance writer as a nurse?

Yes, you can work as a freelance writer while you’re a nurse – in fact, many nurses do this! It can be a great way to use your spare time to make some extra money.

However, it’s important to be aware that writing can be a time-consuming hobby.  Thus, you’ll need to be careful not to let your nursing duties suffer.

Can I save money as a nurse?

Absolutely! One of the great things about the nursing profession is that there are a lot of ways to save money on supplies, from buying in bulk to looking for deals online.

For example, many nurses purchase their stethoscopes and other medical supplies online. They can get great deals compared to brick-and-mortar stores.

Another way to save money as a nurse is by shopping at secondhand stores or garage sales. You can often find gently used medical equipment and supplies at a fraction of the price of new items.

Finally, be sure to take advantage of nurses’ discounts wherever you can find them. Many retailers offer discounts to nurses on everything from clothing to cosmetics.

What are other side hustles that nurses can do?

There are a lot of side hustles that nurses can do to make extra money. Firstly, you can start a nurse blog and sell advertising space or products to nursing-related companies.

You may also create an online course teaching other nurses about different aspects of nursing care.

Furthermore, you can also provide consulting services to other nurses who need help with patient care or managing their schedules.

Why saving money is important for nurses?

Nurses, just like anyone else, need to be able to save money. There are many cases where the degree of professionalism exhibited by a nurse may have a direct bearing on the financial dynamics at play.

For example, when patients are required to pay for their care in hospital settings nurses can be left with challenges. This is true especially if they do not save for unforeseen scenarios such as emergencies that preclude them from working for periods at a time or family issues that require an increased level of caregiving.

In this scenario, there is no benefits-based system that would compensate nurses. Thus they must rely solely on savings should they not work over long periods of time or work multiple jobs consistently.

Why is finance important in the nursing profession?

Nursing is a critical and essential field. The finances of a nursing organization are important in order to provide the best possible care for patients.

Good financial management can help ensure that nurses have the necessary supplies, equipment, and resources to do their jobs effectively and efficiently. Financial stability can also help attract and retain high-quality nurses.

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