Whether you work full-time in a local hospital or you're a traveling nurse visiting new cities every few months, nursing can be an exciting and rewarding career. You're probably more comfortable starting an IV or taking vitals than you are filing your taxes, and that's completely understandable. But knowing which tax deductions for nurses apply to your situation can save you real money every year.
If you've ever asked yourself "Are scrubs a tax write-off?" or "What can nurses actually deduct?", you're in the right place. This guide covers the top write-offs available to RNs, LPNs, NPs, MAs, and other healthcare professionals in 2026, so you can file with confidence and keep more of your hard-earned paycheck.
Tax Deductions for Nurses: Employee Status Matters
| Deduction |
W-2 Employee |
1099 / Self-Employed |
| Scrubs & uniforms |
NO* |
YES |
| Continuing education |
NO* |
YES |
| Licensing & union dues |
NO* |
YES |
| Work mileage |
NO* |
YES |
| Travel stipends (travel nurses) |
YES |
YES |
| Education tax credits (AOTC, LLC) |
YES |
YES |
*Federal return only. Some states (CA, NY, NJ, PA, MN, AR) still allow these deductions on state returns. Check with a tax professional for your state.
Before you start thinking about deductions, you need to figure out your employee status. There are two main classifications: W-2 employees and self-employed workers (independent contractors who receive a 1099).
If you're a W-2 employee, here's the tough news: since 2018, you can no longer deduct unreimbursed business expenses on your federal return. Some states still allow a deduction on your state tax return, but you'll need to check whether your state is one of them and whether you qualify. If you're a W-2 nurse looking to deduct anything, talk to a licensed tax professional. You can also consult the IRS FAQ on miscellaneous deductions for more detail.
Self-employed nurses and independent contractors have a much wider range of deductions available, which is where the rest of this guide focuses.
What Can Nurses Write Off on Taxes?
W-2 Nurses
If you receive a W-2 from a hospital, clinic, or healthcare system, federal deductions for unreimbursed work expenses are no longer available. But here is what you can still do:
- Check your state tax return. Several states did not conform to TCJA and still allow work-expense deductions on state returns.
- Request employer reimbursement. If your employer has an accountable plan, reimbursements for work expenses are tax-free to you.
- Claim education credits. The Lifetime Learning Credit (LLC) and American Opportunity Tax Credit (AOTC) are still available and can offset CEU and tuition costs.
- Consult a licensed tax professional. State rules vary significantly, and a CPA familiar with nursing can find deductions you might miss.
Self-Employed Nurses
As a self-employed nurse, you may be eligible for several deductions that can meaningfully reduce your tax bill. Here are the key categories to know about.
👕
Scrubs and work uniforms
Required uniforms that cannot be worn as everyday clothing are fully deductible. That includes scrubs, any specialized footwear mandated by your employer, and laundry costs. If your employer reimbursed you, you cannot also deduct it.
🩺
Equipment
Stethoscopes, blood pressure cuffs, hemostats, pulse oximeters, PPE you purchased yourself, and medical bags all qualify. The standard: the item must be ordinary and necessary for your work, and not reimbursed by your employer.
📜
Licenses & Certifications
RN or LPN license renewal fees, state registration, background checks, fingerprinting, and specialty certification fees are all deductible. If a governing body or your employer requires it and you paid it out of pocket, it qualifies.
🏛️
Union dues and professional memberships
Dues paid to nursing unions and professional associations (ANA, NANN, AACN, and others) are deductible. Subscriptions to professional journals (JAMA, AJN, IJNS) and required work apps also qualify.
🚗
Mileage
Track every mile driven for work (patient visits, CE courses, picking up supplies, traveling between locations) and multiply by the
current IRS mileage rate.
Alternatively, use the actual expense method if your vehicle costs are high. Either way, a mileage log is required. Everlance tracks this automatically.
🚘
Vehicle Expenses
If you choose the actual expense method instead of the standard mileage rate, you can deduct the business-use percentage of fuel, insurance, registration, repairs, oil changes, and depreciation. Calculate your business-use percentage (business miles divided by total miles) and apply it to each expense.
📚
Continuing Education (CE)
CE courses required to maintain or renew your nursing license are fully deductible, including course fees, materials, and transportation to the training location. Education that qualifies you for a new career (RN to NP, for example) is not deductible here, though education tax credits may apply.
🅿️
Parking & Tolls
Parking fees at a patient location, conference, or any other work destination are fully deductible. Tolls paid on the way to or from any work-related destination are deductible. These can be claimed separately regardless of which mileage method you use.
Keep receipts or use automatic expense tracking to capture these year-round.
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Malpractice and professional liability insurance
If you carry your own professional liability or malpractice policy, the premiums are fully deductible as a business expense. This is especially common for independent contractors and travel nurses not covered by an agency policy.
Tax Deductions for Travel Nurses
Travel nurses can have a unique tax situation depending on how they’re classified. Most travel nurses are employed as W-2 employees through staffing agencies, while some work as independent contractors or self-employed nurses receiving 1099 income.
If you earn 1099 income, you may qualify for a wider range of business tax deductions than traditional W-2 employees. Self-employed travel nurses can generally deduct ordinary and necessary business expenses, including mileage between work locations, licensing fees, continuing education, professional equipment, and portions of self-employment taxes. One major advantage of self-employment is the ability to deduct half of your self-employment tax when calculating adjusted gross income. In 2026, the self-employment tax rate remains 15.3%, covering Social Security and Medicare taxes.
Travel nurses may also receive tax-free stipends for housing, meals, and incidentals if they maintain a valid tax home and meet IRS requirements. This can create significant tax savings when structured correctly. Everything below assumes you have an established tax home and are eligible under IRS rules.
🏨
Temporary housing & lodging
Hotels, Airbnbs, short-term rentals, and extended-stay housing at your assignment location are deductible (or covered by a tax-free stipend if your contract includes one). This applies for contracts under 12 months at a location away from your tax home.
✈️
Transportation to your assignment
Flights, train tickets, car rentals, and gas for the drive to your assignment location are deductible. So is transportation to nursing conferences or workshops in another city, even if you are not working there on a contract.
🍽️
Meals (while traveling)
Meals during travel days and throughout your contract assignment are deductible at 50% of actual cost. If your contract provides a meal stipend, that stipend is generally tax-free and covers this. If not, track every meal and deduct accordingly.
💰
Travel stipend (non-taxable)
If your contract includes a housing and meals stipend, that entire amount is generally non-taxable income, not a deduction you claim. It simply does not count as taxable income. Example: $70/hr x 30 hrs/week x 50 weeks = $105,000 taxable. A $1,000/week stipend x 50 weeks = $50,000 that does not hit your tax return at all.
Tax Deductions for work from home nurses
While less common for bedside nurses, telehealth nurses, nurse consultants, educators, case managers, and independent contractors who work remotely may qualify for additional tax deductions. Many of these deductions assume that you have a home office set up for tax purposes, which requires a dedicated space used exclusively for business.
🏡
Home office deduction
If you use a dedicated space in your home regularly and exclusively for your nursing business, you can deduct a portion of rent or mortgage, utilities, internet, and insurance. Simplified option: $5 per square foot up to 300 sq ft. Actual expense option: calculate the percentage of your home used for business and apply it to each expense.
💡
Utilities (business-use %)
Power, water, and internet bills can be deducted at the percentage of your home used for your office. If your home office is 10% of your home, you can deduct 10% of each utility bill.
🖨️
Office supplies
Pens, paper, printer ink, folders, notebooks, and any other supplies you use in your home office or for your nursing business are deductible. Keep receipts or link your business account to Everlance for automatic tracking.
Travel Nurse Tax Guide: The Details
Your Tax Home
Theentire travel nurse tax structure depends on having a valid tax home. Your tax home is, per the IRS, "the entire city or general area where your main place of business or work is located." In practical terms: if you maintain a permanent residence and work at temporary assignments away from it, you are working outside your tax home. That means your travel expenses are deductible.
To maintain a valid tax home, you generally need to meet all three of these criteria:
- You work in the area of your permanent residence and live there at least part of the year.
- You pay for living expenses at your permanent residence (rent, mortgage, or fair rent to family).
- You have not abandoned your residence, and you or a family member lives there.
Warning: Tax home mistakes can be very costly
If the IRS determines you do not have a valid tax home, your stipends become fully taxable income retroactively. Back taxes plus penalties can be significant.
Common mistakes to avoid:
- Not paying rent or mortgage at your permanent address while on assignment
- Renting your home out while away (may trigger loss of tax home status)
- Not returning home for more than 12 consecutive months
Travel Stipends: How They Work
Most travel nurse contracts have two components: taxable hourly base pay, and non-taxable stipends for housing, meals, and incidentals. The stipends are tax-free because they reimburse you for "duplicate expenses" (maintaining your home while also paying to live at your assignment location).
Example: $70/hour x 30 hrs/week x 50 weeks = $105,000 taxable income. Plus a $1,000/week stipend x 50 weeks = $50,000 in stipends. Because the stipend is non-taxable, your adjusted gross income is $105,000, not $155,000.
If your contract does not include a stipend, you can deduct individual travel expenses: meals, lodging, rental cars, and transportation.
In both cases: keep all receipts. Travel nursing taxes are audited at a higher rate than most professions. IRS-ready documentation is essential.
Housing and Lodging
Whether your agency provides housing or you arrange your own (hotel, Airbnb, short-term rental, extended stay), these costs are generally deductible or covered by your stipend. If you also pay rent or a mortgage at your primary residence, those qualify as the "duplicate expenses" that make your stipend non-taxable.
How to File Taxes as a Nurse
The best approach depends on your situation, but here are the fundamentals:
- W-2 nurses: File Form 1040. Check if your state allows unreimbursed expense deductions. Consider education credits (Form 8863).
- 1099 nurses: File Form 1040 with Schedule C (business income/expenses) and Schedule SE (self-employment tax).
- Travel nurses: Work with a tax professional experienced in multi-state filing. Your tax home status must be airtight.
- Quarterly taxes: If you are self-employed and expect to owe $1,000 or more in federal taxes for the year, you are required to pay estimated quarterly taxes. Everlance tracks income and expenses to help you stay on top of this.
Travel Nurses: Multi-State Filing
If you worked in multiple states, you may owe taxes in each one. You may also be eligible for deductions in states that did not conform to TCJA (CA, NY, NJ, PA, MN, AR).
States with no income tax (TX, FL, NV, TN, WA, WY, SD, AK, NH) do not offer state-level deductions but also will not tax your income earned there.
A CPA specializing in travel nursing and multi-state filing is strongly recommended.
Frequently Asked Questions
Want to make tax season easier as a nurse?
With Everlance, you can effortlessly and automatically track mileage and expenses, and scan your purchase history to find eligible deductions when tax season comes around. The average Everlance user saves $7,500 each year in tax deductions. How much could you save? Download the Everlance mileage tracking app now and find out.
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Automate your nursing tax deductions
Everlance helps nurses & independent contractors save thousands of dollars and hours of time with automatic mileage, expense, and tax tracking.
Brad Thibeau
Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes.
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