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Suggested Job Related Income Tax Deductions for Nurses

By: Reynaldo L. Padilla, CPA
Managing Partner, Padilla & Company, LLP

 

Consider this scenario: You are a nurse and new to the United States. You will be filing your first, second or third year income tax return but have no idea of what tax deductions you can avail of. So you decide to seek professional help, but don’t know how and who to approach. You seek this professional help through referrers and you find three possible sources for help as follows:

H & R Block, an accountant with local education, or a CPA from the Philippines who has learned to prepare income tax returns but has no formal schooling in the USA, or a CPA licensed to practice in the State where you work as a Nurse. Now you are baffled as to who to choose.

 

 

To help you out, here are some basic information about the preparers.

H & R Block – They train their tax preparers for three (3) months and give them a certificate that they are ready to prepare your income tax returns. They could be teachers, a high school gradu ate, accountants or housewives and retirees supplementing their income.

The Filipino CPA or accountant from the Philippines who decided to engage in income tax preparation with a formal or home-based office. Their US income tax knowledge is either self-learned, acquired from H&R Block training, but without a formal education in the United States.

The CPA whose license is acquired through education, examination and public accounting experience as required by the licensing State. They are bound by a code of professional conduct and their license to practice the profession (including the preparation of income taxes) is regulated by the State. Their license can be suspended, revoked or terminated.

With sound judgment, you would select the professional or the CPA as you would a Doctor of Medicine rather than an unlicensed doctor. With the professional you are assured of sound and legal advice on income tax preparation and deductions available to you as a nurse as well as the life situations you will get into as the years progress. Let us begin with the deductions available to you as a nurse.

These possible deductions include the following:

 

  • Nursing licenses and renewals
  • Malpractice insurance
  • Union dues and professional association fees
  • Professional organization dues and professional journals
  • Cost of education required for your job
  • Cost of education to upgrade your skills required for your job
  • Travel costs (including bus, train, taxi, car expenses, tolls, parking fees) incurred between two places of work or for education purposes.
  • Protective clothing such as safety shoes, glasses and special clothing
  • Tools, equipment, and supplies for your job (watch, answering machine, cell phone)
  • Job search expenses
  • Travel, transportation, meals and lodging expenses necessary for finding new employment
  • Moving expenses when necessary for business reasons
  • Cost of compulsory uniforms, special clothing and shoes required for the job
  • Upkeep expenses (including laundry, cleaning) for uniforms and work clothing
  • Child or dependent care (partially deductible)
  • Political contributions
  • Computers, software, calculators and electronic organizers
  • Books and professional journals
  • Cost of attending conferences, seminars and training
  • Home telephone bill expenses related to your job
  • Donations to registered charities
  • Mortgage interest and property taxes
  • Closing cost when selling a home and moving for business-related reasons
  • Tax return preparation fees from the previous year
  • Internet connection fees when used for email and research related to work or continuing studies
  • Self education expenses (including books, course fees, stationery and equipment) as long as related to the job.
  • Taxation and accountancy fees
  • Investment expenses and bank charges (including financial planning fees)
  • Income protection insurance (Disability premium)
  • State and local income taxes
  • Medical and dental expenses not covered by insurance

 

It would be advisable for you to keep receipts for all purchases related to work even if they are not in the list above. It would also reduce the fees paid to the tax preparer if you can organize or summarize your deductions by expense category before submitting them to the CPA professional.

People rely on medical professionals (nurses included) for the care of the sick; it therefore makes sense to trust the preparation of your income tax returns to the CPA professional.

 

 

Last Updated on Monday, 18 October 2010 17:55
 

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