Health Insurance

• As a self-employed caregiver, you can deduct the cost of health insurance premiums. Eligible premiums include health insurance plans covering medical and dental treatments for yourself and family.
  
  

Medical Education

• You can deduct the tuition and fees you pay to an educational institution for medical and other training relevant to the profession. To qualify for the deduction, the institution or vocational school must participate in the U.S. Department of Education's financial aid program. The deduction allows a maximum of $4,000 paid in tuition and fees during the year. The deduction has no minimum attendance requirements and is for caregivers who work full-time during the day and attend at least one class during the year.
  
  

Uniforms

• Caregivers who wear uniforms to work can deduct the purchase price of the uniform and the cost to maintain it, such as dry cleaning. To qualify for the deduction, the uniform must be necessary for the type of work performed and must be unsuitable for wear outside of the work environment. For example, it would be necessary for a taxpayer providing health care services to the elderly to wear a uniform, such as nurse's scrubs, to work each day.
  
  

Equipment

• If the services you provide require the use of medical equipment and tools, the cost of these items can be a business expense deduction. However, if the equipment or tools have a useful life beyond one year, you must depreciate the acquisition costs. The IRS requires you to deduct tools and equipment over a seven-year period, regardless of the actual useful life. However, you can deduct the full acquisition cost in the year of purchase if making a Section 179 election. This election limits the amount of property eligible for immediate deduction to $250,000. The IRS can raise this maximum each tax year.
  
  

Travel

• Self-employed caregivers who use a personal vehicle for work are eligible to deduct a portion of the expense. Travel activities related to work do not include the normal commute to and from a client's home. However, if you must run errands for the customer or drive the client to the doctor, you can deduct the mileage. The IRS provides a standard mileage rate annually that provides the amount of the deduction for each work-related mile driven. Using the standard mileage rate precludes you from deducting additional expenses such as gas, oil and maintenance.