There are quite a number of things nurses can claim tax on. These tax benefits are often in form of tax deductions for expenses that made you spend your money all year long and has not been refunded by your employer. However, you are only allowed to claim work related costs and not those for your personal use. There are a few requirements needed before claiming for a deduction which are: a record to prove the expense is work related, it must be helping you earn an income and you must be the spender and no repayment was done. In this guide, we will discuss the various thongs you can claim tax deduction on as a nurse.
Items to claim on tax
1. Workwear
Since you are required to wear uniforms, you can claim tax deduction on the money spent while buying, repairing and cleaning uniforms.
You can claim:
Footwear- they prevent you from contracting infections and they include non-slip shoes
Stockings
2. Safety gears such as gloves
Compulsory uniform such as lab coats which contain logos on them
You cannot claim:
The cost incurred in buying, repairing or cleaning plain clothes such as black trousers even if your employer has ordered you wear them.
3. Nursing registration fee
Nursing registration is done annually and to get tax deduction you must provide proof may be an email receipt. This deduction only applies to nurses who are already employed but newly employed nurses have to pay to get a practicing certificate.
4. Education expenses
If the course you are studying is related to health matters, then consider claiming deductions. If your course is not related to nursing and might get you a job elsewhere which does not relate to this field, then you cannot claim deductions.
5. Work bag
If your position requires you to have a laptop, consider claiming for a laptop bag or a briefcase to carry your work documents.
6. Stationary
As long as you are using stationary such as pens, diaries, books and calculators in your line of duty, then you have the right to claim deductions for them.
7. Internet cost
If you are using your personal phone and internet for work related tasks, claim deductions.
8. Car expenses
You can claim deductions:
When you drive from one job to the other in one day
Drive to another work location but owned by the same employer
You cannot claim:
The expenses on trips in between your drive from home to work or work to home
Costs of renewing your driving license even if it essential for your job
9. First aid classes
In case you are a fast aid responder and your employee requires you to take first aid classes, then you are eligible to claim for deductions. if they already repaid you, you cannot claim deductions again.
10. Meals
You can claim deductions for meals you take during your overtime as long as your employer has given you an allowance.
11. Other general costs
Apart from deductions specifically for nursing, there are other general deductions for every profession that include: Union fees, Memberships and subscription fees, Fob watches, donations made to registered charities, bank charges on investment accounts, insurance, tax agent fees and cost of travelling to a tax agent
How to minimize your taxable income
Taxable income is calculated by subtracting tax deductions from the total income. Piling up tax deductions causes your taxable income to reduce which enables you to receive a tax reimbursement. The following are a few tips you can use to minimize tax liabilities:
- Ensure you have all receipts from work-related costs to request for them as tax deductions.
- Ensure you have accurate records of work expenses.
- If your employer provided salary packaging benefits you can consider it
- Donate to a charitable organization
- Use a private health insurance to minimize on medical costs
What too know before composing a tax return
Before preparing a tax return, there are two things you should know:
- Maintain records of your expenses: Keep track of your expenses and include the date of buying, the cost and item you bought. If the receipts are in your email, ensure you save them to show your tax agent so they can tell you what can be claimed
- Know what costs to claim: Research on which expenses you claim which must be work related such as overtime meals, training fees and work-related travels among others.
Conclusion
Healthcare workers have a variety of deductions they can claim but you must make sure you are claiming legally. Ensure you store the receipts of purchase well as proof of payment otherwise your claims will be considered null and void. Remember, the lower the taxable income, the lesser the tax you will pay. Have a deep understanding of what to claim and what not to claim. We hope this guide has helped you understand the various aspects of what you can and cannot claim.
FAQs
1. How do I file returns as a travel nurse?
Since a travel nurse is not based at a specific location, tax returns can be quite confusing. It is advisable to involve a licensed tax expert with experience to advice you accordingly in this kind of situation.
2. How long does it take to be a licensed nurse in Australia?
A bachelor of science in nursing takes 3 years studying full time according to the study plan. However, if you decide to study on a part time basis, the duration of time you take depends on you because you are setting your own pace and deciding how much time you will commit to study.
3. What are the advantages of studying nursing in Australia?
Nursing in both private and public facilities rewards greatly and offers you the following privileges: Guaranteed high salary, ability to build strong ties with patients, nursing jobs will always be available and high on demand and it also encourages you to advance you career to a better position.
4. What are the top most demanding nursing careers in Australia?
The most demanding nursing jobs in Australia are: nurses who look after the elderly, mental health nurses, critical care nurses, forensic nurses and nurses who take care of new born.