Whether you are experiencing good or hard times, you must always take full advantage of tax deductions. A tax deduction is money that you subtract from your earned income, which will decrease the total amount of money you are taxed and the amount of taxes you owe.
Two professions where tax deductions have a huge impact are nursing and truck driving. While on the surface these two jobs don’t have much in common, when it comes to tax deductions, they are quite similar.
One commonality is that both nurses and truck drivers work long hours. Additionally, they regularly have extra expenses associated with their work. These extra expenses can usually be classified as tax deductions.
For nurses, there are many things you can write off as a tax deduction. Moreover, there are key factors to your profession you must consider before filing.
Independent Contractor (1099) vs W-2 Employees
Before figuring out deductions, a major differentiator that must be made is 1099 vs W-2 nurses. For example, those that are travel nurses, the tax rules will be different than those who are W-2 employees.
A large number of travel nurses can be classified as independent contractors. If you are a travel nurse, be sure to keep receipts of everything you pay for as you travel, such as mileage, rent, and meals.
Furthermore, if you work in home health, as a contractor, or from home, you should try and see if you can get paid as under 1099. This category will offer you more tax deductions.
Another factor that will affect deductions is if you are a nursing student. The filing status of nursing students is either a dependent of their parents or as filing independently.
Try to remain dependent while you’re a student. The requirements are as follows: You are 24 or younger, you are a full-time student, and your parents support you.
Don’t fret if you are not claimed as a dependent as there are various customary student deductions available to you.
Expenses That Can Be Deducted
There are two choices when it comes to tax deductions, standard deductions or itemized. If you itemize your expenses, you can usually write-off any expenses associated with your job. These write-offs fall into three categories: clothing, equipment, and licensing/ education.
Clothing includes uniforms, scrubs and scrub coats, and medical shoes. Also, any services needed to maintain the integrity of your job can be tax deductions. Examples include dry cleaning, tax preparation fees, and uniform alterations.
Equipment that nurses can write-off is far-reaching; anything that is a necessity to your work which you had to purchase. Stethoscope, penlights, and scissors to name a few.
Finally, licensing and education related to your nursing job can be a tax deduction. These expenses could include continued education costs (such as fees related to conferences or seminars), subscriptions to industry-specific publications, and organization membership dues.
*Note: these three categories are not official, merely a means of organization for your convenience and understanding.
Much like nurses, there are various work-related expenses truck drivers can write-off.
W-2 vs Independent Contractors
In recent years, the IRS no longer permits W-2 drivers to write-off mileage and travel on their tax returns. Although, if you are a truck driver who is classified as an independent contractor or 1099, you can still claim business expenses.
As a 1099 truck driver, you must complete a Schedule C to report income and expenses. This will allow you a selection of tax deductions. Local truck drivers normally cannot deduct travel expenses.
Nevertheless, even if you are an employee you can deduct travel expenses only if you meet certain qualifications. You must be traveling away from home for longer than a day and you must have to sleep or rest to meet the demandsof your work.
Common Deductions Afforded to Truck Drivers
To the IRS, a semi-truck is a qualified non-personal-use vehicle. What this means is that you can only claim expenses for vehicles of this type.
Now, you can deduct expenses related to your truck, such as fuel, oil, repairs, tires, washing, insurance, and repairs or maintenance. It is in your best interest to keep all receipts and to document as much of your expenses as possible.
Other deductions available to truckers are mileage (only if you’re an independent contractor), daily meal allowances, hotel expenses, and union dues. Additionally, you can deduct other unreimbursed expenses including logbooks, lumper fees, business-only cell phone use, and license fees
Regardless if you are a nurse or a truck driver, your profession most likely has deductions. Missing out on such deductions may have resulted in your current tax debt. If this is the case, reach out to TaxRise; our tax professionals can place you in the most ideal tax relief program possible.
Any new or systemic Liens and/or Levies will also be suspended for the time being.
For taxpayers who are considered “seriously delinquent”, the IRS will suspend any new certifications for the remaining period. Any taxpayer who falls into this category in reminded and encouraged to enter into an Installment Agreement or apply for an Offer In Compromise.
The IRS will not forward any new delinquent accounts to private collection agencies at this time.
Taxpayers have until July 15, 2020 to verify to the IRS they are qualify for the Earned Income Tax Credit or to confirm their income. If the taxpayer is unable to verify their credentials or provide appropriate documents for this credit, they are encouraged to notify the IRS before the deadline. No cases will be denied this credit for failure to provide requested information until July 15.
Case workers will continue business as usual. However, most case work will be conducted remotely (video/over the phone conferences). Any requests for documentation sent by the Office of Appeals should be responded to in a timely manner to ensure a smooth process.
The IRS will continue to take the appropriate measures to stay compliant and protect the applicable statutes of limitations. In situations where certain statutes may be compromised, taxpayers are encouraged to extend such statutes. Otherwise, Notices of Deficiency will be issued by the IRS and similar actions will be pursued to protect the interests of the government in preserving such statutes. Where a statutory period is not set to expire during 2020, the IRS is unlikely to pursue the foregoing actions until at least July 15, 2020.
Practitioners are reminded that PPS wait times may be significantly longer, depending on staffing levels and allocations going forward. The IRS will continue to monitor this as situations develop.
“The IRS will continue to review and, where appropriate, modify or expand the People First Initiative as we continue reviewing our programs and receive feedback from others,” Rettig said. “We are committed to helping people get through this period, and our employees will remain focused on these and other helpful efforts in the days and weeks ahead. I ask for your personal support, your understanding – and your patience – as we navigate our way forward together. Stay safe and take care of your families, friends and others.”
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