YOUR lifetime learning credit or LLC is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses — including courses to acquire or improve job skills, i.e. Continuing Education courses that are REQUIRED for your license renewal.
Lifelong / Lifetime Learning – There is no limit on the number of years you can claim your lifetime learning credit.
Annual Credit – Your lifetime learning credit is worth up to $2,000 per tax return.
Not Just For You – The eligible student is yourself, your spouse or a dependent you listed on your tax return.
It’s hard to find tried-and-true accountants nowadays, let alone ones who have years of experience in helping nurses and health professionals reduce their tax liabilities and save their hard earned money. Our featured CPAs would usually charge around $150 for a consult, but health pros have a special place in their hearts. Take our word for it, taking this course will give you a lot more in return than what you paid for. Register today to take the quiz, obtain your certificate and schedule your consult with our featured CPAs. Learn and appreciate how you can utilize your lifetime learning credit and more!
Taking Care of You Series: Financial Health Tier 1 ($50)
“I love helping my clients reduce their tax liability to the government; it is one of my passions in producing measurable results that keep clients coming back, year after year.”
Fred Martin is a partner and the Chief Financial Officer at Winningham Becker & Company, LLP, and has been with the firm since 1991. Fred earned his Master’s degree in Taxation from Golden Gate University and his Bachelor’s degree in Accounting from the University of Maryland. He remains active in the industry as a contributing member of the American Institute of Certified Public Accountants and the California Society of Public Accountants.
Carly Chohon, CPA
Carly Chohon is a Tax Manager at Winningham Becker & Company, LLP. Carly specializes in business and individual taxation. She earned both her Master’s degree in Taxation and Bachelor’s degree in Accounting from the University of Miami – School of Business.
Tax Deductions for Nurses and Health Pros YOU TOO Likely Missed
What are Tax Deductions?
Simply put, they’re money that you take away from your earned income. They should lower the amount of money that you are taxed and/or tax that you owe.
Paying taxes should be seen as a citizen’s duty. Beyond that, there goes the legal aspect. Nurses and other health should keep in mind as licensed professionals, neglect of this duty could be grounds for suspension or even a possible revocation of licenses. Note: We’ve had students in the past who lost their licenses because of this mistake.
Starting in July 2012, every licensed professional (which includes health professionals) in California is subject to losing his or her license to practice his/her profession if he/she is included in California’s list of top five hundred (500) largest tax delinquents. Any license holder included in the said list faces denial or suspension of one’s license when the licensee reapplies for renewal of professional license. The licensee is given a maximum of ninety (90) days from the issuance of a preliminary notice of suspension to either satisfy all outstanding tax obligations or choose a payment installment program. Failure to comply with one of the two given options results in denial or suspension of license until the licensing board, commission, department or any other qualified agency acquires a release coming from state tax authorities.
Most state licenses can be suspended and placed on HHS’ Office of Inspector General (OIG) sanction list for failure to pay state/federal taxes, child support, federal student loans, etc. OIG has discretion to sanction individuals and entities on a number of grounds, including (but not limited to) misdemeanor convictions related to health care fraud other than Medicare or a State health program, fraud in a program (other than a health care program) funded by any Federal, State or local government agency; misdemeanor convictions relating to the unlawful manufacture, distribution, prescription, or dispensing of controlled substances; suspension, revocation, or surrender of a license to provide health care for reasons bearing on professional competence, professional performance, or FINANCIAL INTEGRITY; provision of unnecessary or substandard services; submission of false or fraudulent claims to a Federal health care program…
Healthcare is a fast-paced and generally stressful industry. Consequently, health professionals have little to no time at all to research or perhaps just contemplate about the process of filing tax returns. Hence, many of us pay taxes that could have been included in tax deductions.
Before anything else, you should know that you can only claim tax deductions for the following items if you have in your possession the RECEIPTS for these items.
Education, Continuing Education, Licensing and Certification
Correspondence Course Fees
Malpractice & Liability Insurance
Computer or Laptop
Referral Service for Equipment Repairs
Parking and Toll Fees
Total Miles Covered
Public Transport (e.g. bus, taxi, subway)
Tax Preparation Fees
Other services, e.g. Uniform Alteration, Cleaning, Laundry
Yes, donations given to recognized/licensed institutions are called tax-deductible donations.
Employee vs. Independent Contractor
You will need the Form 1040 (IRS) to write off your expenses as a nurse or health professional. Your expenses will be placed inside the deductions area of this form. Form W-2
Wage and Tax Statement (Form W-2) is used to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. An employer must mail out the Form W-2 to employees on or before January 31. This deadline gives these taxpayers about 3 months to prepare their returns before the April 15 income tax due date.
Form W-2 includes wage and salary information as well as federal, state, and other taxes that were withheld. This information is used by the employee when they complete their individual tax return using Form 1040. Form 1040 Schedule C
An independent contractor is accountable for all of his tax payments and travel expenses. Use the IRS Form 1040 Schedule C if you need to itemize your deductions. An itemized deduction is only needed if your expenses are more than the set standard deduction dollar amount. If your total expenses do not exceed the dollar amount set by the IRS, only use the standard deduction. Form 1099-MISC
Form 1099-MISC is a variant of Form 1099 used to report miscellaneous income. One notable use of Form 1099-MISC is to report amounts paid by a business (including nonprofits) to a non-corporate US resident independent contractor for services (in IRS terminology, such payments are non-employee compensation).
MUST DOs When Preparing and Organizing Tax Documents
Keep possession of your Forms (W-2, 1099, etc.).
Keep track of expenses, i.e. using MS Excel or a dedicated bookkeeping software.
By now, we expect you to look at receipts in a totally different way. Keep, compile and store them in one place.
Have your tax preparation checklist completed.
Have a detailed tax deduction checklist.
All data and information provided in this course is for educational purposes only. Educate Simplify makes no absolute representation to the correctness, mistakes, omissions, delays, appropriateness, or legitimacy of any data or information provided in this course.
Each course participant/student has varying circumstances and consequently, consults will be on a case-by-case basis.