There are many advantages of working in the locum tenens field, with one of the most appealing being the opportunity to claim a multitude of yearly tax deductions. Understanding the types of expenses that can be claimed will allow you to save more money when the time comes to file your next tax return. Here are some of the most common expenses that locum tenens providers can claim during tax season:
Lodging and transportation.
Lodging and transportation are two major tax-deductible expenses for many professions, especially when it comes to locum tenens work. Any housing and travel costs that were not reimbursed by your employer can constitute as tax write-offs throughout your locum tenens career. Travel costs can include flights, car rentals, gas, car insurance, car repairs, parking fees and even lease payments. Keeping track of all housing and travel-related work expenditures throughout the year will ensure that you receive the most optimal tax write-off as a locum tenens provider.
As the demand for telehealth providers increases, so does the number of locum tenens physicians who work from home. Home offices or other “at-home” workspaces used exclusively for locum tenens work can be claimed as tax deductibles based on the function and square footage of the house. As an extension of this, computers and other virtual telehealth devices used to provide virtual patient care may also be claimed on your next tax return if they meet certain criteria.
If you are not enrolled in an employer-sponsored health insurance plan and do not have access to one through your spouse, your health insurance is considered a tax-deductible expense as a locum tenens provider. When it comes to tax write-offs, the ability to reduce your taxable income through deducting any insurance premiums or HSA contributions is a major benefit of the locum tenens lifestyle!
To keep track of these potential tax deductions, it will be critical to save your receipts or make all eligible purchases on one credit card. This will allow you to present a full record of your locum tenens work expenses throughout the year when it comes time for tax season.
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Disclaimer: This page is for informational purposes only and is not intended to take the place of advice from a professional financial advisor. We recommend consulting a licensed CPA for tax consultation and other financial advisement.