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Tax Deductions for Home Health Care Workers

Linzi Martin

For professionals in the healthcare industry, tax deductions will vary depending on the type of position you hold. For home health care workers, in particular, your eligibility for write-offs are contingent on two factors: Do you work for a staffing agency? Or, are you self-employed? Granted, your answer might be yes to both these questions.

In any case, it’s important to know which expenses are tax-deductible so you can cut your tax bill this year. Below we’ve outlined the basics on tax deductions for home health care workers, including how you can use a mileage tracking app to secure major savings on your return.  

What is the role of a home health care worker?

Home health care workers, also known as home care aids, Certified Nursing Assistants (CNAs), and caregivers, are trained professionals who give attentive assistance to elderly, disabled, and ill patients from the comfort of their home. Oftentimes, a home care aid is a jack of all trades. Typical responsibilities range from non-medical assistance to personal care such as bathing, dressing, getting in and out of bed, and driving to medical appointments.

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What can an employed home care worker claim?

The option to claim tax deductions as a home health care worker generally depends on your employment status. If you work for an agency, it’s likely you don’t have to worry about tax deductions. Exciting news! At least for those who dread filing taxes. Instead, most employers wil opt to reimburse their workers for eligible business expenses such as:

  • Education
  • Work-related travel
  • Professional association dues
  • Uniforms purchases
  • Protective gear for work-related tasks

That is to say, if your unreimbursed expenses exceed 2% of your adjusted gross income, there is some wiggle room to claim those expenses on your tax return. Just remember — you’ll need to show proof to the IRS that your expenses are greater than the reimbursement amount.

What can a self-employed home health care worker claim?

Self-employed home care aids have an immense opportunity to save a lot of money on their tax return. Similar to other self-employed professionals, home health care workers can claim the following business expenses, some in full and some partially:

Since the IRS enforces taxpayers to separate all personal and business expenses, it’s critical to keep track of these types of deductions. For example, if you spend 40 percent of your time on the phone for your client’s care, you may deduct 40 percent of your phone bill on your tax return. All and all, filing as a self-employed individual can be tricky, but these tax deductions make a major impact on reducing your taxable income.

Can I claim mileage as a carer?

As a home care worker, your job often goes beyond the household. In fact, odds are you use your personal vehicle regularly to visit clients, run errands, or take them to doctors’ appointments. Since your responsibilities surpass in-home care, that means you’re paying for gas, insurance, repairs, and other vehicle expenses for work-related reasons. The good news is self-employed home care workers can deduct these “out of pocket” expenses on their next tax return. The only catch — you must maintain accurate records.

This means keeping gas receipts, repair invoices, or simply tracking mileage with a mileage log. Most tax experts would agree that claiming mileage is perhaps the easiest deduction method for vehicle expenses. With MileIQ, home health care workers can automatically track both Personal and Business miles each week without distraction from their daily tasks. What’s more, all business-related drives are safely stored and available for access at any point in time.

We hope this information helps you navigate taxes this year! If you have more questions regarding self-employed tax deductions for home health care workers, visit MileIQ’s Help Center for resources and more.

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