Nurses, like other taxpayers, are eligible to claim various deductions and credits on their income tax returns to lower their taxable income. These deductions can help reduce the amount of taxes owed and increase the amount of refund that a nurse receives. It is important to note that the deductions and credits that a nurse can claim will vary depending on their specific circumstances and may change from year to year.
Here are some of the common expenses that nurses can claim on their taxes:
- Uniforms and footwear: Nurses are required to wear specific uniforms and footwear for their job. The cost of purchasing and cleaning these items can be claimed as a tax deduction. This includes the cost of specialized footwear, such as comfortable shoes for long hours on the job or waterproof shoes for working in wet conditions.
- Continuing education: Nurses are required to continuously update their skills and knowledge to maintain their professional licenses. The cost of continuing education courses and certifications required to maintain their license can be claimed as a tax deduction. This includes tuition fees, books, and other related expenses.
- Work-related travel: Nurses who travel for work purposes can claim expenses such as transportation, meals, and lodging. For example, if a nurse is required to attend a conference in another city, they can claim the cost of airfare, hotel, and meals as a tax deduction. It is important to keep receipts for these expenses to support the claims made on the tax return.
- Tools and equipment: Nurses can claim the cost of tools and equipment required to perform their job, such as stethoscopes, blood pressure cuffs, and other medical equipment. This can include the cost of purchasing, maintaining, and repairing these items.
- Professional dues: Nurses can claim the cost of professional organization membership fees, including professional liability insurance premiums. This is an important expense for nurses as it helps protect them against potential lawsuits arising from their work.
- Home office expenses: If a nurse works from home on a regular basis, they may be able to claim a portion of their home expenses as a tax deduction. This includes expenses such as electricity, heat, and internet. To claim this deduction, the nurse must have a dedicated home office space and must use it exclusively for work purposes.
- Moving expenses: If a nurse is required to move for work purposes, they may be able to claim the cost of moving as a tax deduction. This includes expenses such as transportation, storage, and temporary living expenses. To claim this deduction, the move must be related to the nurse’s job and the new job must be at least 50 miles farther from the nurse’s old home than the old job was.
In addition to these deductions, nurses may also be eligible for various tax credits. Tax credits are different from deductions as they directly reduce the amount of taxes owed, rather than reducing taxable income. Some of the tax credits that nurses may be eligible for including the Child and Dependent Care Credit, the Earned Income Tax Credit, and the American Opportunity Tax Credit.
It is important to keep detailed records and receipts of all expenses related to the deductions and credits claimed on the tax return. This will help ensure that the claims made are accurate and can be easily verified by the Internal Revenue Service (IRS) if needed.
In conclusion, there are many expenses that nurses can claim on their taxes to lower their taxable income and increase their refund. From uniforms and footwear to continuing education and work-related travel, there are many deductions and credits that can help reduce the amount of taxes owed. It is important to keep detailed records and receipts of these expenses and to consult a tax professional to ensure that all eligible expenses are claimed.
As always, be sure and consult a qualified tax accountant or tax attorney.
Phyllis Robinson MSN, RN is a Registered Nurse of 27 years. Phyllis is passionate about the prevention and healing of heart disease using traditional and alternative methods. She has experience in emergency room, telemetry, infusion, and critical care. Phyllis currently practices in an intensive care unit.