Every year, doctors and medical professionals build up a considerable amount of bills, fees, and expenses to maintain their career and business. In the annual stress of handling all these costs as the financial year draws to a close, some of these expenses can slip through the cracks. Many medical professionals may be surprised to learn some of the costs that are actually tax deductible. Here are just five examples of tax deductions every doctor should know about before they process all their annual bills!
This blog outlines a few examples of tax deductions many medical professionals may miss when making financial claims. If you’re looking for personalised financial advice, call Curve Accountants today for a consultation.
1. Self-Education
In order to satisfy the constant changes of development and registration requirements, many doctors spend thousands of dollars on self-education annually. It’s a relief, then, that the cost of work-related self-education can be made deductible as long as the study works to maintain or improve skills necessary to your current profession. A few examples of expenses this may cover include:
- Conferences and seminar fees
- Class fees
- Exam fees
- Textbooks
- Travel/accommodation costs due to educational trips
- Costs of study-related equipment and bills
2. Travel Expenses
Travelling for work, business, or study purposes is not uncommon for doctors and medical professionals. Travel expenses directly related to business-focussed travel are deductible – meaning any personal aspects to the trip or non-essential guests travelling with you cannot have their expenses deducted. Some tax-deductible travel expenses include:
- Airfares
- Car hire
- Accommodation
- Meals
- Transportation fees or fares (bus, train, taxi, tram, etc)
3. Uniform and Protective Wear
If your profession demands occupation-specific uniform, clothing, or protective wear, the associated costs can be claimed for tax deduction. This includes purchasing, hiring, laundry/dry cleaning, and repairing expenses. Conventional clothing, even those required only for work purposes, cannot be claimed – meaning medical professionals wearing business attire to work cannot have these costs deducted. Examples of what can be claimed include:
- Surgical wear (masks, caps, etc)
- Medical scrubs
- Lab coats
- Theatre shoes
4. Working from Home Expenses
If your medical practice ever sees you working from home, you may be able to claim associated costs on your taxes. If things such as your phone, internet, or computer are used for work purposes, these may be deductible expenses. Things can get a little bit tricky when it comes to making claims over home expenses, though, as you need to ensure that you only deduct what is being used for professional purposes. If your internet bill covers 80% personal use and 20% work use, then only that 20% may be claimed for tax deductions.
5. Gifts and Donations
Any donations made annually are eligible for tax deduction. Whilst there are some exceptions to what gifts and donations are deductible, a good rule of thumb is that if the donation was over $2, made to a charity that is a deductible gift recipient, and didn’t supply you yourself with any personal benefits for having donated, then it should be fine to claim. If you donated to a charity as a part of a raffle, to win a prize, or to attend an event for example, these will not be able to be claimed for tax deduction.
Contact Curve Accountants for Tax Advice
The medical industry can be difficult enough to navigate as is, even without the added pressure of deciphering your taxes and what may be eligible for deduction every year. These five tax deductions are just a few examples of what many doctors may be missing out on annually – but reaching out for professional help to manage taxes and financial planning can help ease the burden.
Our Curve Accountants team has years of experience working with the financial side of the medical profession, and we understand the ins and outs of navigating business as a doctor. If you’re looking for an expert opinion, reach out to Curve Accountants.
