Over the last few months, there has been a lot of talk about the potential tax plan being debated by the house and senate as we write this post. Many people have serious concerns about how the plan could affect the average worker. As a travel nurse, what do you need to know about the tax plan? What can you do to plan ahead? Let’s take a closer look.
While the tax bill is being proposed as a massive tax cut for working-class Americans, there are some challenges with that notion. Looking at it on the surface level, right now the standard deduction for a single person is $6,500 which would double to $12,000. For married couples, that would leap from $13,000 to $24,000. This would be the amount immediately deducted from your income on your taxes, so you would be taxed on a much lower income. However, personal deductions will be eliminated. This may mean that if you have multiple dependents, you will no longer be able to deduct them from your taxes.
Other deductions being eliminated include those for homeowners and the child tax credit.
Business Insider put together a comprehensive list of common roles and how the tax plan could impact them. On the list included these stats for Nurse Practitioners who are single and claiming no dependents. According to their figures, the average salary of this role is $104,601 which would be currently taxed at $19,361. With the proposed tax changes it would reduce to $16,766 for a 13.4% tax cut, making the tax plan appear very enticing on the surface level.
Of course, this number would different for travel nurses, but there are other factors to consider as well. Though the tax plan is far from finalized, some proposed changes could hit travel nurses the hardest. Here’s why:
- Moving expenses would be eliminated. The very cornerstone of the travel nurse career path will no longer be available for consideration when it comes to tax season. Generally, an employee moving for a job can deduct these costs. But, the current proposal removes this from taxes altogether.
- Student loan interest won’t be deductible. Nursing is not a low-cost proposition and with the extensive school and training, many have significant debt burdens. While the tax plan appears to cut the overall tax rates, it also eliminates deductions such as those for student loans.
Do you want to know more about the tax plan and potential effects it could have on your career as a travel nurse? Contact the team at Fortus Healthcare Resources today.
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