WHAT ARE THE RN TAX DEDUCTIBLES ?There are a lot of RN tax deductibles that apply to the nursing profession and you will soon learn of deductibles you did not even thought of. As in every country, taxation is the major source of income for the country. Thus,you got to submit accurate information with regards to your family size and other tax calculating factors at time of filling out form W-4. It is a fact that single workers pay more tax than the married individuals or those with more dependants. Never try to present false information in order to pay less tax. You will be inviting auditing from IRS ; nothing can kill you early than a taxation tussle with a state/federal government. There are different taxes in USA. Depending on where the RN resides your taxes include city tax, state tax, federal tax and sales taxes. Sales taxes also vary from state to state, county to county and, even zip code to zip code. USA practice the progression tax system, i.e. the tax rate increases as your income goes up. Usually, your RN pay slip contains 4 or 5 taxes. Californian registered nurse for instance pays state tax and so will have a total of 5 types of taxes on the pay slip. Out of these, 3 can be said to be ‘savings’ for your retirement. So the RN either files her/his taxes on one tax (federal tax) or two (federal & state taxes). The payroll tax you pay is apparently an estimate of what your true tax should be. At the end of each year, your actual taxes will be worked out based on income earned. And you may either be reimbursed or you have to pay more. There are a couple of items and activities that are considered deductible for the registered nurse. Business materials or job related expenses like:
• Nurses’ scrubs &footwear, and books on registered nurse profession. • Registered nurse job looking expenses including registered nurse resume expenses. • Continuing education for registered nurses
• Registered nurse license renewal. • The registered nurses’ moving expenses are also deductible.
• ACLS/BLS expenses to the registered nurse • alimony • home improvement to accommodate a disability • stop smoking/weight reduction expenses
• Casualty loss, expenses from rentals etc.
• medical and dental expenses • interests paid on your mortgage • and, sometimes, mileage covered to and from work. These deductibles must however meet certain conditions for these deductibles to be beneficial to the RN. For instance, the RN’s annual expenditure on health care/dental services must be more than 7.5% of the registered nurses’ annual income to be used as a deductible. Your accountant will give you more information on what expenditures qualifies as RN tax deductibles at time of filling your taxes. It is therefore advisable to keep receipts and statements on the above expenses for your tax returns at end of the year. Many foreign trained RNs have missed out on lots of the above because they had no idea what were covered under RN tax deductibles. And anytime you make a donation to a church, charity organization and Salvation Army, get a receipt. Those are RN tax deductibles too.
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