Bookkeeping for Private Duty Healthcare Workers: Tax Tips and Expense Tracking Introduction

Introduction

Private duty healthcare workers, including independent caregivers and nurses, operate as small business owners and must track their finances carefully to maximize deductions and stay compliant with tax regulations.

Best Practices

1. Separate Business and Personal Finances

• Open a business bank account to track payments and expenses efficiently.

• Use business credit cards to separate personal and work-related costs.

2. Deduct Medical Equipment and Mileage

• Keep records of all purchases related to medical supplies, uniforms, and equipment.

• Track mileage for home visits using apps like MileIQ for tax deductions.

3. Use Software for Healthcare Professionals

• Utilize QuickBooks or Tebra (previously Kareo) for accurate bookkeeping and invoicing.

• Leverage payroll solutions like Gusto if hiring additional staff.

4. Stay Compliant with Tax Laws

• Set aside money for self-employment taxes.

• Consider hiring a CPA for tax planning and quarterly estimated tax payments.

Conclusion

Proper bookkeeping ensures private duty healthcare workers maximize deductions and remain financially secure.