Every Tax Deduction Travel Nurses Can Claim

Travel nurses leave money on the table every year because they don’t know what’s deductible. The IRS allows employees to deduct unreimbursed work expenses — but only as itemized deductions on Schedule A, and only if your total itemized deductions exceed the standard deduction ($14,600 single / $29,200 married in 2024). For most travel nurses, itemizing is worth it. Here’s what you can claim.

The Catch: Employee vs. Self-Employed

Most travel nurses are W-2 employees. The Tax Cuts and Jobs Act of 2017 eliminated the miscellaneous itemized deduction for employee business expenses through 2025. What this means: if you’re a W-2 employee, you cannot deduct unreimbursed work expenses on your federal return.

There are two exceptions worth knowing:

1. Some states still allow it. California, New York, and a handful of others let you deduct employee business expenses on your state return even if you can’t on federal. Check your home state.

2. If you’re self-employed or working through your own LLC/S-corp, all of these deductions apply on Schedule C. If your agency pays you as a 1099 contractor (rare but it happens), you have access to these deductions federally.

The deductions below are especially valuable if you’re self-employed, doing PRN work on a 1099 basis, or filing in a state that allows employee expense deductions.

Uniforms and Scrubs

Scrubs are deductible if they’re required for work and not suitable for everyday wear. That last part is key — the IRS looks at whether a reasonable person would wear the clothing outside of work. Scrubs generally pass this test. Compression socks you buy for long shifts also qualify.

Keep your receipts. A year of scrubs might run $200-500, which isn’t huge but adds up over time.

Licensing and Certification Fees

Every state license you hold is deductible as a professional expense. Travel nurses often hold 3-5 state licenses at once, each costing $100-300. That’s $300-1,500 per year in licensing fees alone.

Also deductible:

• NCLEX prep fees (if you took it this year)
• BLS, ACLS, PALS, NRP renewal fees
• Specialty certifications (CCRN, CEN, etc.)
• Compact license fees

Continuing Education

CEUs required to maintain your license are deductible. This includes:

• Online CEU courses ($30-200)
• Conference registration fees
• Travel to nursing conferences (see travel section below)
• Books and study materials for professional development

If your agency reimburses CEUs, only deduct the portion you paid out of pocket.

Professional Association Dues

ANA membership, state nursing association dues, specialty organization memberships (AACN, ENA, etc.) — all deductible. These run $50-300/year each.

Travel Expenses for Work

This is where it gets more nuanced. Your regular commute from housing to the hospital is not deductible. But other travel costs may be:

Deductible:

• Mileage driven to pick up supplies for patients or to a secondary job site
• Travel to a conference or CEU training
• Travel to obtain a new state license (driving to a state board appointment)

Not deductible:

• Driving from your temporary housing to the hospital (that’s your commute, even if temporary housing is far away)
• Personal travel mixed with a work trip

If you’re self-employed, travel between your home office and a client/work location is deductible. The 2024 standard mileage rate is 67 cents per mile for business driving.

Home Office Deduction (Self-Employed Only)

If you’re a 1099 contractor or run your own staffing entity, you may qualify for the home office deduction. The space must be used regularly and exclusively for business. The simplified method lets you deduct $5 per square foot, up to 300 square feet ($1,500 max). The regular method deducts a percentage of actual home expenses (rent/mortgage interest, utilities, insurance).

Travel nurses who use part of their tax home for business administration — scheduling, billing, documentation — may qualify.

Malpractice and Professional Liability Insurance

If you pay for your own malpractice insurance (some travelers do, especially those working through their own entity), 100% of the premium is deductible.

Background Checks and Drug Screening

Some agencies charge nurses for background checks or require you to pay for drug screening upfront. These are deductible as unreimbursed job-seeking or employment expenses.

Job Search Costs

Looking for your next assignment counts as business development if you’re already in the profession:

• Resume service fees
• Travel to job interviews (if applicable)
• Professional profile subscriptions (LinkedIn Premium)

Note: You cannot deduct job search costs if you’re changing careers or seeking your first nursing job.

Health Insurance Premiums (Self-Employed)

If you’re self-employed and paying your own health insurance, 100% of premiums are deductible on Schedule C — not as an itemized deduction. This is one of the most valuable deductions available to 1099 travel nurses.

How to Document Everything

The IRS requires you to be able to substantiate every deduction if audited. Keep:

• Receipts for all purchases (photos on your phone count)
• A mileage log if you’re deducting vehicle expenses (date, destination, business purpose, miles)
• Continuing education certificates showing what you completed
• License renewal confirmation emails

An app like Keeper or Everlance makes expense tracking automatic throughout the year. Much easier than reconstructing everything in March.

The State Deduction Angle

Even if you can’t deduct work expenses federally, check your home state. California allows deduction of unreimbursed employee business expenses above 2% of your federal AGI. New York has similar provisions. For a travel nurse with $2,000 in legitimate business expenses and a 9.3% California state rate, that’s up to $186 back in your pocket at the state level.

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Your next step: Create a folder in your email or Google Drive right now labeled “2025 Tax Deductions.” Every time you buy scrubs, renew a license, or complete a paid CEU, forward the receipt there. At tax time, you’ll have everything in one place instead of hunting through 12 months of purchases.