Nurses have demanding yet rewarding jobs. They must dedicate their time and expertise to caring for others.
But that does not mean they can neglect their tax obligations because the government will eventually catch up with them.
It is essential to ensure that you don’t forget about taking care of your finances in all you do. To do that, you need to understand the tax deductions available to you as a nurse.
Our blog post focuses on common tax deductions for nurses and more you need to know about it. Let’s dive right into it;
Understanding tax deductions for nurses
For nurses, tax deductions are expenses related to their line of work that are subtracted from their taxable income to reduce taxes owed.
Usually, these deductions significantly impact their tax bill, and knowing what needs to be deducted from their side is very important for them.
What can nurses claim on tax?
Here are some of the common tax deductions for nurses as follows;
1. Work-related expenses
When it comes to work-related expenses that nurses can claim, they are more eligible provided the expenses they are claiming for are able to meet the following specific criteria;
- Uniforms and protective clothing
Nurses can claim a deduction on compulsory attire they wear at work, such as scrubs, aprons, lab coats with logos, and anything else they wear at work.
However, personal clothing, such as shoes, even if worn at work, can not be declared a deductible.
- Professional development
When one sacrifices time to participate in courses, seminars, and workshops to enhance their current skills, they can claim for a tax deduction. However, they can’t claim expenses related to learning a new course aimed at a new profession or role.
- Licensing and professional fees
Deductibles for annual registration fees, union dues, and professional association memberships can be claimed.
- Medical equipment and supplies
All medical equipment, including stethoscopes and blood pressure cuffs, among other essential tools, can be claimed for a deduction.
2. Travel and vehicle expenses
If you use your car for work-related travel, moving from one job place to another, then you may be eligible to claim the following;
- Mileage
You will deduct the cost of travel made between different work locations or even while attending development activities.
You should note that everyday trips from your home to your workplace cannot be considered a deductible.
- Toll fees
Expenses accompanied by toll roads used during work-related trips should also be claimed for a deduction.
3. Home office expenses
If you have a dedicated space set aside for work-related tasks, you may be able to claim a portion of your home office expenses.
You may claim for costs related to work, such as electricity, internet, a portion of rent, mortgage interest, and more.
4. Other deductible expenses
- Agency fees
If you pay for commission payments to a nursing agency, you can still claim a deduction. But this does not apply if your employer has already paid the commission fee upfront, among other expenses, to a nursing agency.
- Overtime meal expenses
Costs for meals during overtime shifts are to be considered deductibles.
Tax deduction checklist for nurses
To ensure you’ve made all available tax claims you are entitled to as a nurse, you must create a deduction checklist.
Usually, the checklist is a valuable tool that helps nurses stay organized throughout the year.
To ensure you maximize your deductions:
1. Keep detailed records
Always ensure that you keep and maintain your receipts, invoices, and logs for all work-related expenses for later use.
2. Understand eligibility
Ensure all the expenses for which you plan to claim a deduction are directly related to your work and not reimbursed by your employer.
3. Consult tax professionals
Seek guidance and advice from qualified and registered tax professionals to help you sort out the tax laws and ensure compliance is met.
4. Keep all receipts
If you ever want to make tax deduction claims, always remember to have receipts and invoices with you and ensure they are well-kept. This is a golden rule of tax deductions that should be taken seriously.
5. Maintain a logbook
If you must travel from one workplace to another, always remember to keep your logbook safe, as it is always useful.
