Self Employed Caregiver Tax Deductions

Self Employed Caregiver Tax Deductions

Here is all of the information on self employed caregiver tax deductions. Check out the different points below to see if it is applicable to you.

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1) Tax deductions for self employed caregivers

The federal tax law allows self-employed caregivers to deduct the costs of performing their work that is not available to most taxpayers.

The Internal Revenue Service deals with taxpayers who work for their own business or companies for income tax purposes.

Caregivers must understand the authority that governs the deductions to ensure that they calculate the full benefit.

2) Health insurance

As a self-employed caregiver, you can deduct the cost of health insurance premiums.

Eligible premiums include health insurance plans that cover medical and dental treatments for you and your family.

3) Medical education

This is an important area for self employed caregiver tax deductions so always speak to a tax professional before you do your tax filing.  

You can deduct tuition and fees paid to an educational institution for medical and other training related to the profession.

In order to qualify for the deduction, the institution or vocational school must participate in the financial assistance program of the Department of Education.

The deduction allows a maximum of $4,000 paid in tuition and fees during the year.

There are no minimum attendance requirements in the deduction and it is for full-time caregivers during the day who attend at least one class during the year.

3) The uniform

Caregivers who wear their uniform to work can deduct the uniform purchase price and the cost of maintaining it, such as dry cleaning.

To qualify for the deduction, the uniform must be necessary for the type of work performed and must be unsuitable for use outside of the work environment.

For example, it would be necessary for a taxpayer who provides health care services for the elderly to wear uniforms, such as nurse coats, to work every day.

4) Tools

If the services you provide require the use of medical equipment and tools, the cost of these items may be a deduction of commercial costs.

However, if the equipment or tools have a useful life of more than one year, you should depreciate the acquisition costs.

The IRS requires you to deduct instruments and equipment for a period of seven years, regardless of the actual useful life.

However, you can deduct the total cost of purchase in the year of purchase if an election is made from Section 179.

This election limits the amount of property eligible for immediate deduction to $250,000.

The IRS can increase this maximum each fiscal year.

5) Travel

Caregivers who work on their own and use a personal vehicle to work can deduct part of the cost.

Work-related travel activities can include visiting different client’s home if you work as self employed at different locations.

Likewise, if you have to send messages to the customer or take the customer to the doctor, you can deduct the mileage.

Always keep a mileage log and note down a description for each journey.

The IRS provides a standard rate per annual mile that provides the amount of the deduction for each mile related to the job.

If the standard rate per mile is used, additional costs such as gas, oil and maintenance are not withheld.


This is a short overview of self employed caregiver tax deductions and there could be many other deductions that you are eligible, speak to a tax expert for further details if needed.


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