1099-k contract deductions

[teeelove8]

I received a 1099-k for contract nursing. What all can be deducted as employee expenses? 

[Vanessa A]

A 1099-K or a 1099-NEC?

If you were a contract nurse (not an employee), you would be able to deduct your scrubs, nursing license, pens used for work. If you were an agency nurse that went to a number of facilities and did not have one primary location, you would be able to deduct your mileage to the facilities.  If you bought your own stethoscope or BP cuff, you could deduct that as well.  You may also be able to deduct your health insurance premiums, self employed retirement contributions

  If you were an agency nurse that had a steady assignment at one facility, you would not be able to deduct your mileage as this would be your primary job location.  You would still be able to deduct expenses such as your scrubs and any equipment you bought personally. 

If you were a travel nurse, you could deduct hotels, and meal expenses.  

If you were a traveler that left your state, you will need to file a return for the state you worked in as well as your home state. 

Tax Write Offs for Self-Employed.

Business expenses for travelers

To enter your self-employment income click the following:

• Federal
• Income and Expenses
• Show More next to Self-Employment
• Start or Revisit next to Self-Employment
• Yes, to you have any self-employment income or expenses
• Enter the type of self-employment work you do
• Click through a few more screens and you will get to a screen that says "Your XX info"
• Click Looks good
• Then you will come to a screen that says Let's enter the income for your business.  It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks.  Select the one that applies to you and hit continue
• If you do not select one, it will not let you enter your income
• Enter your self-employment income on the next screen
• Continue through to enter your expenses

[teeelove8]

As far as evidence, what is considered valid for proof of these expenses? Would it only be receipts? Are bank statements also valid?  How does it work if you deduct health insurance but your premium is considered a “family premium”? Thank you for your time. 

[DawnC]

You can deduct premiums for your family.   Receipts and bank statements are valid proof of expenses and income, respectively.   Your supporting documents should show the amount paid and that the amount was for a business expense. Documents for expenses include the following:

Canceled checks.

Cash register tapes.

Account statements.

Credit card sales slips.

Invoices.

Petty cash slips for small cash payments.

IRS Record Keeping Tips

You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. The business you are in affects the type of records you need to keep for federal tax purposes. Your recordkeeping system should include a summary of your business transactions. This summary is ordinarily made in your business books (for example, accounting journals and ledgers). Your books must show your gross income, as well as your deductions and credits. For most small businesses, the business checking account is the main source for entries in the business books.