As a per diem nurse tax time can be a challenge if you don’t have a plan for keeping track of expenses and deductions all year long. Whether you choose to go to a tax preparer or do them yourself, here are a few important tips to help make the most of getting your biggest refund when filing your tax return.
With changing health insurance regulations and available deductions, its best to start by visiting the Internal Revenue Service website to see the many tips they have available. The goal is to make the most of your allowable deductions, which requires understanding what is available beyond what is listed in the 1040 form.
There are a number of potential deductions that you can take as a per diem nurse when you travel from one job to another such as unreimbursed mileage, certification and educational costs, scrubs and more. Even some of your own medical and dental expenses may be eligible for deductions. This is where it’s important to keep all of your business-related receipts all year long so that you can claim the deduction on your income taxes.
If you’re not sure about the validity of a deductible expense, check with a tax professional. Some of these expenses may require you to include an addendum to explain the expense. This is an additional document that allows you to explain particular deductions to the IRS.
If for some reason, you’re unable to complete and file your return by April 15th, you can file for an extension of two months with Form 4868. Keep in mind that you must pay your estimated tax at that time, and if you underestimate the amount, it is possible that the IRS can levy penalties and interest for the outstanding amount.
It’s not uncommon for nurses with full time nursing jobs to take on per diem assignments. If you claimed no deductions on your original W-4, it may help you to avoid any tax underpayments where your per diem salary is concerned.
Another key aspect of minimizing the amount of taxes that you may owe for per diem nurses is being sure that you understand how tax deductions and tax credits work. Deductions reduce the tax liability of your adjusted gross income by a set percentage while tax credits directly reduce the amount of taxes owed. These and other aspects of tax filing specifics are explained in the 1040 instructions, but it always helps to get additional guidance from a tax professional and your chosen staffing or recruitment firm.