The dedication of our nurses is always incredible, but during this COVID-19 period, your role has been even more amazing. Here we have some information to help with our nurse’s tax return.
Income for Nurses: Nurse’s Tax Return
The first step with regards to the preparation of the tax return is the income declaration, which includes salary & wages, bonuses, and allowances. Reimbursements should not be declared.
Allowances are included in your statement or payment summary covering compensation for an aspect of your work, such as carrying out unpleasant or dangerous tasks or helping to pay expenses such as meals and travel to work.
There is a difference between allowances and reimbursements. The first one is an estimated value of what you might spend. On the other hand a reimbursement is when the actual amount of the expense is paid back by the employer. If you are compensated for an expense incurred by you, this is a reimbursement. In case of a reimbursement received as part of your employment as a Nurse, you cannot claim such an expense on the Nurse’s tax return.
Deductions for Nurses: Nurse’s Tax Return:
You can also claim work-related deductions, which are expenses directly related to your income, incurred by you and not reimbursed by the employer. To claim deductions, you should keep records (receipts) of the expenses. To facilitate you can keep these records electronically using the my Deductions tool from the ATO, which can be accessed by your tax agent. Please note, any personal-use expenses cannot be claimed as a deduction.
Examples of what can be claimed as a deduction for a Nurse’s Tax Return?
Clothing and uniform expenses can be claimed with regards to the cost of buying and cleaning uniforms, clothes that are unique and distinctive for your job, and protective clothing. A Nurse’s occupation requires you to wear specific distinguishable clothing and hence the maintainence, upkeep and purchase of a new uniform will be claimable on your tax return.
Laundry expenses can be claimed for the costs incurred in washing, drying and ironing uniforms and protective equipment. You can be claim $1 or $0.50 per load depending if there are personal items included or not. When less than $150 is claimed, there is no need to maintain any records.
Self-education expenses: Any courses you may undertake that you pay for would generally be claimable as a general self-education expense.
Union and professional association fees: Any membership or union fee is claimable on a nurse’s tax returns. For example: ANF membership.
Annual practising certificate fees: If you do have a practicing certificate and pay for the renewal of such a licence, you would be eligible to claim such expenses.
Agency commission and agency fees: If you are hired by an agency and pay them a fee, such a fee would be claimable.
Seminars, conference and training courses: Any conferences or seminars you attend would be claimable, they need to be related to your work.
You can only claim car expense deductions when you drive between separate jobs or work locations, for example between different workplaces from the same employer.
Phone and internet expenses can also be claimed as long as your employer requires you to use them for work.
As professional accountants and tax agents, we have many clients who are nurses or work in the medical and health care sector and we are confident you will be in safe hands with us.