Here's a unique tax-related issue regarding health care professionals courtesy of H&R Block:
Health care professionals often sacrifice personal time and energy to aid in the healing of others. Many find that they do not have enough time to organize the receipts and documents necessary for their tax returns in order to maximize their tax deductions. H&R Block sees a wide range of taxpayers, many of whom are health care providers, and has the knowledge and skill to help them find the most deductions and tax credits available for their industry.
With health care professionals, the following deductions are most commonly overlooked:
Professional Activities
- The cost of obtaining and maintaining professional licenses, including licensing fees, may be deductible if the health care professional itemizes their return
- Memberships in professional organizations or subscriptions to professional publications may also be deductible
Additional Credentials
If the health care professional is working toward additional credentials such as a Master’s degree, the cost of tuition, books, supplies and some transportation costs are deductible if:
- The credentials help maintain or develop new skills essential for the health care professional’s position
- The credentials meet an employer requirement or state or federal regulations
- The credentials do not qualify the health care professional for another occupation
From standard issues to less common deductions, health care professionals will benefit by seeking a tax professional who understands and appreciates their complex tax situations. For more information about commonly missed credits and deductions, visit H&R Block's website or contact your local H&R Block office.
Lastly, it’s important to note that the taxpayer must be able to itemize deductions to claim these expenses. To itemize, total itemized deductions must be more than the standard deduction for the taxpayer’s filing status. For 2005, the standard deductions are $5,000 for singles and married persons filing separately, $10,000 for married persons filing jointly, and $7,300 for head of household.
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