Tax deductions for nurses
As a nurse, you may be eligible for several tax deductions that can lower your tax bill. These deductions can include nursing school tuition, uniforms and work-related equipment, continuing education courses, mileage reimbursement for work-related travel, and medical expenses not covered by insurance. In this blog post, we’ll discuss these tax deductions in more detail.
- Nursing school tuition: If you are currently paying tuition for nursing school, you may be able to deduct some or all of the costs on your tax return. The American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) are two tax credits that can help offset the cost of tuition, books, and other educational expenses.
- Uniforms and work-related equipment: As a nurse, you may be required to wear a uniform or purchase equipment for your job. These expenses are tax-deductible as long as they are necessary for your job and not suitable for everyday wear. Examples of tax-deductible expenses include scrubs, lab coats, and stethoscopes.
- Continuing education courses: Nurses are often required to take continuing education courses in order to maintain their license. These courses are tax-deductible as long as they are required for your job and not for personal development.
- Mileage reimbursement for work-related travel: If you are required to travel for your job, you may be able to deduct the cost of mileage on your tax return. This includes the cost of gas, oil, and repairs. To qualify, your travel must be primarily for business purposes and you must keep detailed records of your mileage.
- Medical expenses not covered by insurance: Nurses may have medical expenses not covered by insurance that can be tax-deductible. These expenses can include deductibles, copayments, and other out-of-pocket costs.
It’s important to note that to claim these deductions, you must itemize your deductions on Schedule A of your tax return, and that some deductions may have limits or phase-out ranges, meaning that they may not be fully deductible if the taxpayer’s income exceeds a certain threshold.