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New Member
posted Mar 28, 2022 2:21:19 PM

Can I deduct medical license expenses required for my job while working in the health care field?

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2 Replies
Level 15
Mar 28, 2022 2:32:29 PM
Expert Alumni
Mar 28, 2022 2:34:33 PM

No, you are not able to deduct those expenses if you are an employee with wages reported on a W-2.

 

The federal return no longer allows a deduction for employee business expenses. There are a few states that still allow these deductions. Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania all provide a deduction for unreimbursed employee business expenses on their respective state income tax returns.

 

If you live in one of the states that still allow employee business expenses as a deduction, you would enter this in the federal return, and the information will be transferred to your state return.

 

Here's how to enter the information:

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Employment Expenses
  • On Job-Related Expenses, click on the start/update button
  • Once in this section, you can enter union dues and any other employee expenses.

But if you are an independent contractor and receive a 1099-NEC to report your income, those expenses can be included in the Schedule C that you will file.

 

You can enter Form 1099-NEC in the Other Common Income section under Wages & Income. However, since it is considered self-employment income, I recommend you start a Schedule C to decrease your taxes with the ordinary and necessary business expenses. 

 

To enter Form 1099-NEC as self-employment, under Wages & Income, scroll down to Self-Employment and select Show More and Start.

 

For more details, see: What is Form 1099-NEC?