Are you missing out on the multiple tax deductions for medical professionals? Though the standard home office and travel tax deductions are available for any worker, being a medical professional gives you a few more options. In today’s article, we look at common tax deductions for doctors, including a few options many medical professionals forget to claim.
Common tax deductions for doctors
As a medical professional, you may find yourself travelling quite often, whether it’s due to remote work or just going to and from the clinic. To claim this on your doctor tax rebate, you’ll need to work out the approximate distance between your home and the office/hospital and the approximate amount of weeks spent travelling. Parking and tolls can also be claimed, as well fuel and any maintenance costs incurred.
Work-related travel tax deductions for doctors include:
- Fuel costs of driving to and from work
- Public transport or Uber fees
- Hire car expenses
- Flight expenses
- Tolls and parking
Work-related tools and equipment
Being a medical professional involves using a lot of equipment, which means you’re eligible for multiple doctor tax rebate options. This can be your standard stethoscope or lab coat, or even something as simple as a diary you use to jot down notes. Work-related tools and equipment can compass many items, but the most common equipment related tax deductions for doctors include:
- Medical equipment not covered by an employer
- Protective gear
- Insurance premiums on equipment
- Software and licencing fees
- Work-related equipment repairs
Being a doctor means it’s paramount to continue your education, as new medicine methods are constantly being found. This might involve self study or attending workshops, training, and conferences to learn new techniques, potentially involving a lot of travelling or staying at he accommodation. Any expenses covered by you for the duration of your training can be added to your tax deductions, as long as personal time outside of training is omitted from the tax expenses.
Mobile phone and home office expenses
if you’re a doctor that does a lot of remote work or visits homes, you’ll likely be able to add mobile phone expenses and internet use to your tax deductions as well. Of course, considering mobile phones are also for personal use, you’ll likely only be able to claim a portion of the internet usage. A home office expense can be worked out exactly, or you can claim the 66 cents per hour worked using the ATO’s tax calculator.
Common home office tax deductions for medical professionals include:
Heating, cooling and lighting
- Depreciation of office equipment and furniture
- Phone and internet
- Computer consumables i.e. paper and ink
If your employer doesn’t cover the expenses needed for new work items such as scrubs or lab coats, you’ll be able to claim back the costs incurred out of pocket for any medical related workwear. This also includes shoes and professional laundering, as well as medical bags, compression socks or masks.
Common workwear related tax deductible expenses for doctors include:
- Non slip nurses shoes
- Professional laundering
Medical professionals are required to have professional indemnity insurance under national law, which can sometimes cost up to $100 a month. If your insurance is work-related, you should be able to claim a portion of it back – though it’s worth chatting to an accountant about what types of insurance is tax deductible.
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We hope you’ve enjoyed reading our article in ‘tax deductible expenses for doctors.’ If you’re looking for a loan for a medical practice, a house or a car, Medipro Capital Finance can help find you a loan at a competitive rate. To get started, call us on 1300 375 626 or get in touch online and one of our loan specialists will be in touch shortly. Or read more about our loans for medical professionals to see what services we offer at Medipro Capital.