Tax Time Tips for Nurses: Updated

Maybe it’s just me, but there’s something undeniably exciting about doing your tax return and sifting through receipts and emails for claimable expenses—it’s a bit like a treasure hunt! Hahaha, call me crazy :-P

For those who prefer not to put in that much effort at tax time, we’ve got some detailed tips! Remember, we aren’t professional tax agents, so it’s best to seek personalized financial advice to ensure these suggestions are right for you.

What to Claim:

• Agency Fees: If you work for an agency, you can claim the fees they charge. This includes any commission or service fees deducted from your pay.

• Registration Costs: Professional registration costs required to maintain your nursing credentials are deductible. This includes annual registration with your nursing board.

• Laundry Costs: You can claim laundry expenses for uniforms, scrubs, and other work attire, even if your employer provides a laundry allowance. Use a reasonable estimate if you don’t have exact amounts.

• Travel Between Jobs: If you hold multiple jobs, you can claim travel expenses between workplaces. This includes mileage, public transport fares, and other related costs.

• Work-Related Travel: Claim travel expenses between different sites or facilities using your own car. Keep a detailed diary or logbook noting dates, kilometers traveled, and purposes of the trips to ensure accuracy.

• Protective Clothing: PPE, protective eyewear, scrubs, and protective shoes purchased for work can be claimed. Ensure you keep receipts and note the specific work requirements for these items.

• External Courses: Expenses for external first aid or other courses required by your job are deductible. This includes course fees, textbooks, and travel expenses if you need to attend classes off-site.

• Overtime Meals: If you work overtime and purchase meals during these extended shifts, you can claim these expenses. Make sure to keep all receipts as evidence.

• Phone Usage: If you use your phone for work purposes, such as on-call duties or contacting patients, you can claim a portion of your phone bill. Keep a diary of work-related usage to substantiate your claim.

• Education Expenses: Costs associated with continuing professional development (CPD), courses related to your current job, or education aimed at achieving a promotion within your field are deductible. This includes tuition fees, textbooks, and related materials.

• Seminars and Conferences: Expenses for attending professional seminars and conferences, including registration fees, travel costs, accommodation, and meals, are deductible if they directly relate to your nursing duties.

• Stationery: Track your purchases of pens, notepads, and other stationery items used for work. These small costs add up and are deductible.

• Work Tools: Items like stethoscopes, medical scissors, and other tools necessary for your job can be claimed. For more expensive items, you may need to calculate depreciation over the item’s useful life.

• Fob Watches: A fob watch is deductible, but regular wristwatches are not. This might be the perfect time to invest in a new, functional design that fits your needs.

• Union Fees: Union membership fees can be claimed, reducing your taxable income.

• Professional Subscriptions: Subscriptions to professional nursing organizations or relevant publications are deductible. This ensures you stay informed and compliant with industry standards.

• Charitable Donations: Donations to registered charities are deductible, reflecting the generous spirit often found in the nursing profession. Ensure you get receipts for all contributions.

Additional Deductions:

• Home Office Expenses: If you have a dedicated workspace at home where you do job-related tasks (like continuing education or managing patient records), you may be able to claim a portion of your home office expenses. This includes a percentage of your rent/mortgage, utilities, internet, and office supplies.

• Computer and Software: If you purchase a computer, tablet, or software specifically for work purposes, you can claim these expenses. Similar to other tools, you may need to calculate depreciation for higher-cost items.

• Internet Expenses: A portion of your internet expenses can be claimed if you use the internet for work-related activities, such as accessing medical journals, communicating with colleagues, or attending online courses.

• Professional Indemnity Insurance: If you pay for your own professional indemnity insurance, this expense is deductible.

• Medical Equipment Maintenance: Costs for maintaining and repairing necessary medical equipment like stethoscopes and blood pressure monitors.

• Subscription to Medical Journals: If you subscribe to medical or professional journals, these costs are deductible. This helps you stay updated on the latest in healthcare.

Additional Tips:

• Use a Tax Professional: While it's possible to file taxes on your own, using a tax professional who understands the specifics of deductions for healthcare workers can ensure you don’t miss any claimable expenses.

• Digital Record Keeping: Use apps or software to keep track of your receipts and work-related expenses throughout the year. This will make it easier to organize and claim these expenses when tax time comes.

• Annual Review of Work-Related Purchases: Set a reminder to review and possibly purchase necessary work-related items before the end of the financial year. This can include new uniforms, shoes, or professional development courses.

• Mileage Tracking Apps: Use apps specifically designed for tracking mileage to make it easier to log your work-related travel. This ensures you have accurate records for your claims.

• Keep Up with Tax Law Changes: Tax laws can change, and staying informed about these changes can help you maximize your deductions. Subscribing to newsletters or following reputable financial advice websites can be beneficial.

• Membership Benefits: Some professional nursing associations offer resources or webinars on tax tips specifically for nurses. Utilize these resources for additional guidance.

• Clarify with Employer: Ensure you clearly understand what expenses your employer reimburses and what you need to cover out-of-pocket. This can help avoid confusion when claiming deductions.

Always consult with a tax professional to ensure you’re making the most of the deductions available to you while staying compliant with tax laws.

Final Reminder:

Keeping thorough records and receipts throughout the year can significantly ease the burden of filing taxes. Not only will it make the process quicker, but it will also ensure you don’t miss out on valuable deductions. Happy filing, and may your refund be generous!

Now is the perfect time to stock up on any work-related equipment so you can claim it on your return. Check out the Nurse Life website for all your nursing needs!

Share your tips or let us know what you'll be spending your refund on in the comments below!