Most 1099 Nurses pay Zero tax

TAX DEDUCTIONS FOR NURSES

Being a nurse requires not only willpower but also grit and determination in order to serve the patients and help them feel at home. With the pandemic calling forth the frontline workers and their jobs demanding unlimited work hours, tax issues may be the ones that are not finding time on the clock, yet are inevitable to be dealt with. To save you the time struggling with formal provisions and deduction clauses, we are providing here a short and simplified article so that your eternal confusions- “Are nursing home expenses tax-deductible?”, “Is nursing home care tax-deductible?”, ‘’Can I write off my work uniform’’, ‘’Are my continuing education courses tax deductible?’’ and so on can be resolved once and for all and you can focus on the frontlines while fulfilling your taxpayer role smoothly!

What can nurses deduct on their taxes?

Being self-employed, like a home health care worker or an under contract nurse, as opposed to a regularly employed nurse, a FORM 1099 - MISC, miscellaneous income is what you should be looking for to file your returns.

You will get various extra deductions over the employee nurses as your self-employed status opens up the opportunity to claim a plethora of business deductions as tax deductions for nurses. From your continuing education costs to your equipment costs, a wide range of deductions are available in order to help you lower your tax liability.

Common tax deductions for nurses:

Here’s a list of top deductions that nurses can claim:

• Education and training expenses:

  - Being a nurse doesn’t mean education is out of the way forever. You can pursue and evolve your skills and competence alongside. But does that entail any benefit on your tax returns?

  - Yes, you may get deductions conditionally. If your education expenses are along the line of your current profession i.e. Nursing. A different occupational training or education expenses aren’t deductible.

  - This also includes the fees, meals, and travel to conferences or Continuing Nursing Education courses.

• Stationeries:

  - The work of a nurse isn’t restricted to physical expenditure and caretaking entirely.

  - Your recordkeeping tasks like tracking the activities, timings for medicines, and attendance all demand use of stationery and they are tax deductible.

  - Your logbooks, attendance registers, workbooks, pens, scissors, diaries, etc. can be written off!

• Medical tools and equipment:

  - Being self-employed means the hospitals aren’t the backend provider for you.

  - Your work is your responsibility and therefore your pocket expenditure.

  - Equipment including Stethoscopes, Blood Pressure Devices, and a range of other equipment spans the list of deductions you are entitled to.

• Travel expenses:

  - The IRS understands your painstaking effort and provides a per mileage standard for tax deductions!

  - Your transportation write-offs include vehicle upkeep expenses like automobile repairs as well.

• Work uniform:

  - Only the clothing related to work and that which is not reimbursed by the employer can be deducted. Thus, your work uniform is a write-off that includes scrubs, embroidered scrubs, protective gear like gloves, goggles, medical shoes, etc. are also tax-deductible. Even laundry expenses are deductible!

• Licensing and renewals:

  - Your professional “Registered Nurse” certification requires renewal, which is, of course, paid and may also help in saving some bucks on the tax filing.

  - Thus, anything you pay to keep your nursing license, or any state registrations is tax-deductible.

• Subscriptions, Journals, Publications:

  - Updating and upgrading your medical expertise can also find deductions on your filing list.

  - Hence, any journals, nursing magazines, or books used by you to keep your medical knowledge refurbished are also claimable.

• Electronic devices:

  - If you use your personal laptop or computer, you can claim its depreciation cost.

  - This cost is generally based on the percentage of work-related use.

  - You can also claim a portion of your mobile phone and data bill if you use your cell phone for work.

• Home-Office expenses:

  - In general, if you work from home, you can deduct a percentage of various expenses such as your rent, house repairs, and maintenance costs, utilities like gas and water bills, etc.

  - Home office deductions are such business expenses that qualified homeowners and renters should definitely consider writing off. So as to qualify for the home office deduction, the home office must be your ‘principal place of business and should be used regularly and exclusively for the purpose of your business conduct.

Is nursing home care tax deductible?

It is possible to write off the cost of nursing home care if the primary purpose of admission is to receive medical care. But be aware that you would be able to write off the costs only if you consider itemizing your deductions instead of going ahead with the standard deduction. However, this write-off is restricted to the eligible medical expenses which exceed 7.5% of your Adjusted Gross Income.

Which nursing home expenses are tax deductible?

• Medical care
• Lodging
• Meals

Note: If the primary reason for being in the nursing home is not to obtain medical care, only that portion of the fees can be written off which is directly being spent on the medical treatment.

In this case, meals and lodging wouldn't be tax-deductible.

A registered nurse providing medical services such as giving medicines, changing clothes, helping the patient groom and bathe, assistance with toileting etc. comprises nursing home services that are considered for tax deductions.

However, other services provided outside the ambit of such medical services like cleaning, and sweeping among others are not deductible.

The household services as such provided should be clearly differentiated from the medical ones and then filed for deductions.

Certain requisites like meals for home attendants may also be eligible for write-offs.

Conditions For Medical Care Deductions In A Nursing Home

Medical care in a nursing home is deductible but with conditionalities:-

• Cost of meals and lodging only for reasons of Medical care are deductible.
• Functional incapacities count if you are unable to perform even two activities of daily living on your own unless assisted by another person substantially for a minimum of ninety days.
• Modifications at home to accommodate medical needs count as write-offs too including access ramps, grab bars and railings, installing lifts (only for accommodating a disability), lowering of kitchen cabinets, counters.
• Even the renovations for seamless movement of wheelchairs by widening doorways and hallways or modifying door hardware to accommodate the disability count.

Conclusion

The deduction for self-employed nurses is way over the regular employed and beneficial especially if you consider the rising tax obligations of the state. Tax deductions for nurses like these can help in further educational pursuits as well for wider employment opportunities.

You can rationalize your tax liabilities under the multiple provisions provided by the IRS. FlyFin can be your savior if you are looking to find tax deductions. It is powered by AI and backed by CPAs who can help you figure out your taxes simply by asking you a few questions about your profession and tax filing status.

You can also use FlyFin's free tax calculator to figure out your1099 tax rate and all the deductions you can write off on your taxes!