As a registered nurse, you dedicate your time and energy to care for others. But it is important to take care of your needs as well. Especially your financial well-being. Understanding and claiming the tax deduction for nurses can significantly reduce your taxable income. In this blog, I’ll tell you some significant tax deductions you can claim.
Following is the list:
1. Agency Commissions and Agency Fees
If you’ve made a commission payment to a nursing agency, you can claim a deduction for that payment. But if your employer has paid the fees, you can’t claim a deduction on that.
2. Annual Practicing Certificate Fees
To renew your annual practicing certificate, you can claim a deduction. This is applicable if you need the certificate to work in your employment. Remember! The initial cost can’t be claimed as a deduction. This is because that expense enables you to start employment. Tax deduction for nurses is only applicable when you are earning.
3. Car Expenses
You can only claim the deduction on car expenses if you carry bulky equipment for work. You can also claim the deduction if you have shifting places of employment. Also, the following conditions should be met:
- Equipment is essential for performing duties.
- Equipment is difficult to transport without a motor vehicle.
- The workplace has no secure storage place for the equipment.
In case of shifting workplaces, the following are the conditions:
- travel between several jobs on the same day
- work for the same employer and have to travel to and from alternative workplaces.
- drive from home directly to an alternative workplace.
4. Work clothes and uniform expenses (including footwear)
You can claim deductions on the purchase, repair, and replacement of the work clothes (including the footwear) under the following categories:
- Protective
- Occupation specific
- Uniform
5. First Aid Courses
To claim a deduction on first aid training courses, you must meet two conditions. You must:
- be a designated first aid person.
- complete a first aid training course to assist in emergency work situations.
If you meet this criterion, you can claim a tax deduction for nurses. But if your employer pays for the course, you can’t claim a deduction. Even if your employer reimburses you for the cost, you’re not eligible for the deduction.
6. Glasses, Contact Lenses and Anti-Glare Glasses
You can claim a deduction only for protective glasses. These include sunglasses, anti-glare classes and safety glasses/goggles. Prescription glasses or contact lenses are not included in this category. You can’t claim a deduction on these as they are a private expense. The deduction is only applicable to work-related use of the glasses. For example, if you wear them to reduce the risk of injury or illness while working.
7. Laundry and Maintenance
You can claim a tax deduction for nurses on laundry costs of protective clothing and uniforms. You cannot claim the deduction on everyday attire. This also includes laundromat and dry cleaning expenses. Laundry claim is applicable for:
- $1 per load on exclusive work-related clothes
- 50c per load on a mix of personal and work clothes
8. Meal And Snack Expenses
You can claim a deduction on overtime meal expenses. This is only applicable if you are performing overtime, and you get the expenses under industrial reward. Food, drink or snack during normal work hours are a private expense. You can’t claim a deduction on these.
You can claim a deduction for a meal when you work overtime. But you should receive an allowance for it and it’s on your income statement as a separate allowance.
9. Newspapers And Other News Services, Magazines and Professional Publications
You can only claim a deduction for a work-related portion of publications. You will be eligible for the deduction if you can show a direct link to the content with your duties. Also, the content must be specific to your job and not something general.
10. Parking Fees and Tolls
Trips between home and work are private expenses. It also includes a parking fee at your regular workplace. You can only claim a tax deduction for nurses on work-related tours. It applies to parking fees and tolls.
11. Protective Items
Tax deductions are applicable on protective equipment only if you use them in your workspace. You can claim the deduction if you want to protect yourself while working closely with the patients. You can also claim the deduction if you are using the items in earning your employment income. Moreover, you can also claim the repair, cleaning or replacement cost. But if your employer is paying the expenses or supplies you with the equipment, you can’t claim the deduction. Moreover, if the cost is reimbursed, you still can’t claim the deduction.
12. Phone, Data and Internet Expenses
You can claim a tax deduction on work-related use of your phone. For incidental work use, you do not need to keep a record. That is the case if you claim up to $50. For more than $50, you need to keep a record of the use. You cannot claim the deduction if your employer reimburses the expenses or provides you with the phone for professional use.
13. Repairs Tools and Equipment
You can claim the deduction for the repair cost of work-related equipment. If you use them for your private use, the deduction is only applicable to work-related use of them.
14. Self-education Expenses
You can claim a tax deduction for self-education expenses if it relates to your job. It includes learning and improving skills for your current duties. It also includes courses that might increase your income from your present job. You can claim a deduction on the course fees, amenities fee, books, journals and stationery. If it is a remote study, you can also claim work-from-home expenses.
You can’t claim the deduction if the course does not directly relate to your current employment. You can also not claim the deduction if it enables you to change employment.
15. Seminars, Conferences and Training Courses
You can claim a deduction on work-related seminars, conferences, and courses. This includes fares to reach the venue, registration costs, and accommodation and meals in case of out-of-station events. If the event is related to a private purpose, you can’t claim deductions. If it is for both purposes, you can claim deductions on the work-related portion only.
16. Stationery
You can claim a tax deduction for nurses on stationery that you use on the job. This includes logbooks, diaries, and pens. If the equipment is provided by the employer, the deduction is not applicable. Even if the equipment cost is reimbursed, you can’t claim the deduction.
You can’t claim a deduction to travel between your home and workplace. It is your private expense. However, if you need to travel to another workplace from your regular workplace, you can claim a deduction for that. You can claim a deduction on work-related transport expenses. It is only applicable if the travel is for job purposes. But if your employer pays or reimburses the expenses, you can’t claim the deduction.
18. Tools and Equipment
You can claim a tax deduction for nurses for work-related use of the equipment. If it costs you up to $300, you can claim the full amount in the year of purchase. Remember! The tool should not be part of the set that costs above $300 altogether. For the tool of equipment worth more than $300, you can claim a deduction on the decline in its value.
19. Travel Expenses
If you have to travel for work and spend a night away from your home, you can claim a deduction. These expenses include food and accommodation. You are not eligible to claim a deduction if your employer or a third party pays or reimburses the costs. Moreover, if you are not required to sleep away from your home overnight, you can’t claim a deduction. To claim the deduction, you must show that:
- you were away overnight
- you spent money
- travel is directly related to work
Suggested Read: Your Complete Guide to Work Related Business Trip Tax Deduction
20. Union and Professional Association Fees
If you pay for union and association fees, you can claim a deduction on that. For evidence, show your income statement.
21. Watches and Smart Watches
You can claim a deduction for work-related equipment. If your watch possesses specialized features useful for work-related purposes, you can claim a deduction. Moreover, you can claim a deduction on the repair cost, battery and watchband expenses. Any other cost of purchasing and maintaining the watches or smart watches is a private expense.
22. Working from Home Expenses
Tax deductions for nurses are applicable on the work-from-home expenses incurred as employees. These include electricity, phone and internet costs etc. You must calculate the deductible amount using the methods set by ATO, you must also keep the records required for the chosen method. You can’t claim deductions on your expenses.
Bottomline
Maximizing your tax deductions can lead to substantial savings. This allows you to keep more of your income and invest it in your future. By staying informed about the deductions available, you can ensure full benefit.
So, take advantage of these opportunities and enhance your financial health.
Discover More Topics:
ADF Tax Deductions Complete Guide 2024
End of Financial Year Tax Tips for Australians
Role of Low Income Tax Offset in Tax Planning: Maximize Your Tax Benefits
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