Raise your hand if you love doing your taxes.
We don’t either.
Taxes can be confusing and uncertain — and when you’re a locum tenens provider, they may seem especially tricky.
But they don’t have to be!The experienced team at Trusted Talent has you covered with our comprehensive tax guide for locum tenens providers. We cut through the intimidation by giving you easy ways to pinpoint, organize, and manage your tax deductions so you can keep more of your pay.
Table of Contents
- What Can a Locum Physician Deduct From Taxes?
- 9 Tax Deductions for Locum Tenens Providers
- Commonly Asked Questions About Taxes for Locum Tenens Providers
- Locum Tenens Taxes May Seem Confusing — But With Trusted Locum Staffing, Finding the Perfect Position Doesn’t Have To Be
What Can a Locum Physician Deduct From Taxes?
As a locum tenens physician, you have numerous deductions that can help relieve the strain of yearly taxes, including:
- Business travel
- Home office
- Housing
- Uniforms and equipment
- Health insurance
- Meals
- Phone
- Continuing medical education
- And more
9 Tax Deductions for Locum Tenens Providers
#1: Business Travel
Did you know mileage to and from your assignments as a locum tenens provider is a tax deduction? Since it falls under the umbrella of business travel, logging your mileage is a great way to take full advantage of this locum tenens perk. In some instances, the cost of your car, insurance, and gas can also be counted!
#2: Home Office
While many nonmedical people may not realize it, healthcare providers do a considerable amount of work at home. From online continuing education to completing paperwork, a home office is common for locum tenens providers. And great news — they’re also tax-deductible!
If you’re one of the many locum tenens who use a home office, it may count as a tax deduction. Typical home office deductions include a portion of your mortgage or rent utilities including internet, and other home expenses such as buying specialty medical software programs for your computer. Check out the IRS website to find out more about home office deductions.
#3: Housing
Locum tenens positions are often referred to as ‘travel jobs’ since they usually require you to temporarily move to the job location, often staying in hotels or short-term housing.
As a general rule, a part of a locum tenens assignment includes paying for your lodging as part of the overall compensation. Not only is this one of the huge perks of the job, but many locum tenens providers get to stay in amazing places for free. However, if you should incur any non-covered lodging expenses during your locum tenens assignments, they’re tax-deductible — mini bar included!
#4: Uniforms and Equipment
Another great deduction for locum tenens providers is the purchase of supplies they need to do their jobs, including:
- Scrubs, white coat, clothes, shoes, and other PPE
- Gadgets, like tablets and laptops you need for work
- Medical equipment, like a new stethoscope
Any of these items that are purchased for use during your locum tenens assignment can be written off on your taxes.
#5: Health Insurance
As a locum tenens provider, you operate as an independent contractor and, as such, rarely get employer-sponsored healthcare. There are numerous ways to get healthcare, including the marketplace, but you’ll have to pay the premiums out of pocket, and thankfully, they’re tax-deductible.
One of the reasons savvy locum tenens providers choose to travel with Trusted Locum Staffing is our amazing insurance perks, including:
- Employer-sponsored health insurance
- HRA to fully cover deductibles
- Guardian dental and vision Insurance
- Wellness benefits
- And more
You simply can’t go wrong with Trusted Locum Staffing!
#6: Meals
Do you love eating out? As a locum tenens provider, the meals you buy while you’re working locum tenens assignments are tax-deductible. If you prefer to cook your own food, you’ll be glad to hear this even includes meal delivery services like Hello Fresh and Blue Apron, which are convenient but may also come with a hefty price tag.
#7: Phone
A smartphone is a daily requirement in this day and age, but locum tenens providers also technically need them for work.
Quick on-the-job access is crucial for communicating with healthcare facilities and other providers, which is why both phone and carrier plans are tax-deductible for locum tenens providers.
#8: Continuing Medical Education (CME)
Continuing medical education (CME) is a mandatory part of being a locum tenens provider. Not only can CME be a lot of work, but it can also be a strain on your finances.
Medical education doesn’t come cheap, but luckily, most continued medical education you pursue as a locum tenens provider can be written off on your taxes. If you aren’t sure if your CME is tax-deductible, check with your CPA.
#9: Additional Expenses
The locum tenens provider tax deductions just keep coming! Here’s a sampling of some of the other expenses that can be taken as tax write-offs:
- Malpractice insurance if purchasing your own
- Disability insurance if purchasing your own
- Additional licensing or fingerprint services
- Professional fees
- Office supplies like paper, ink, printers, RX pads, etc.
- Retirement plan contributions
- Healthcare expenses with limits — be sure to double-check with your tax professional about this, as these expenses are only deductible if they’re above a certain percentage of your income
- And more
The best way to ensure you receive every possible deduction is by keeping all your receipts and working with a qualified CPA.
Commonly Asked Questions About Taxes for Locum Tenens Providers
Should I Hire a Tax Professional To Prepare My Locum Tenens Taxes?
100% yes!
While it can be tempting to try and figure it all out on your own, it’s easy to overlook deductions (or try to count something that’s non-deductible).
An experienced tax professional will have the skills it takes to get a complete picture of your situation as a locum tenens provider, save you money, and make your life a whole lot easier.
Do Locum Tenens Providers Pay State and Self-Employment Taxes?
Yes.
As an independent contractor, you need to pay self-employment taxes, which cover your share of Medicare and Social Security.
You’ll also be required to pay state taxes in your home state as well as in states where you worked throughout the year. Since each state has its own unique tax laws, locum tenens providers who work in multiple locations should consult with an expert to ensure they fully fulfill their tax obligations.
Should I Pay Quarterly Taxes as a Locum Tenens Provider?
Yes. As you work locum tenens assignments throughout the year, the IRS typically wants you to make regular income tax payments that are usually due on the 15th of April, June, September, and January.
While the timing and tax bills may cause sticker shock, keep in mind that locum tenens positions generally pay more than permanent roles.
If you must pay quarterly taxes, consult with your tax professional to determine the amount you owe and avoid penalties. Check out the IRS Estimated Taxes resource for complete information.
How Can Locum Tenens Prepare for Next Year’s Taxes?
Does getting everything squared away for next year’s taxes sound overwhelming at best? Check out these tips from the experienced travel team at Trusted Locum Staffing to cut the stress and ensure everything’s in order:
- Keep all of your receipts and expense records in a designated location.
- Enlist the help of a trusted tax professional who’s experienced in traveling professions. It’ll make the process easier and ensure you get the tax credits you deserve.
- Create an expense spreadsheet to track your purchases or use a bookkeeping program like Quicken, or FreshBooks.
- Open a ‘taxes’ savings account and set aside 35-40% of your income each paycheck to pay your quarterly taxes.
- Set up any tax-advantaged accounts you’re not already using, like HSAs or IRAs.
Locum Tenens Taxes May Seem Confusing — But With Trusted Locum Staffing, Finding the Perfect Position Doesn’t Have To Be
You became a locum tenens to care for patients and live life on your terms — not because you wanted to worry about the details of taxes or finding the right staffing company to travel with.
Let the experienced professionals at Trusted Locum Staffing help take some of the stress off of managing your locum tenens career with our amazing benefits and white-glove service. When you make the smart choice to join our team of traveling healthcare professionals, you’ll enjoy some of the best benefits in the industry, such as:
- Competitive compensation
- 401(k) with a 4% match after 1,000 hours and one year of employment
- Weekly paychecks
- Direct Deposit
- Overtime
- Customizable pay packages
- Wellness benefits
- Employer-sponsored health insurance
- HRA to fully cover deductibles
- Guardian dental and vision insurance
- Insurance benefits
- Portable permanent whole life insurance
- License, certification, & CEU reimbursements
- Portable short-term and long-term options
- Disability insurance
- Work flexibility
- Flexible contract options
- Full-time, part-time, and per-diem
- Housing, meal, and travel stipends
- Rental car options
- A dedicated team ready to advocate for you and provide support every step of the way
Focus on being the best locum tenens physician you can be — and let Trusted Locum Staffing take care of the rest!
