Home Health Nurse Mileage Deduction Question - Can I claim it?

Unfortunately, as a W-2 employee, you can no longer deduct unreimbursed employee expenses like mileage on your federal tax return. This changed with the Tax Cuts and Jobs Act of 2017, which eliminated miscellaneous itemized deductions subject to the 2% floor (including unreimbursed employee expenses) for tax years 2018 through 2025. The "temporary work location" rule you're referring to generally applies to self-employed individuals or independent contractors, not W-2 employees. In your situation, since you're employed by the home health agency, these would be considered unreimbursed employee expenses. Your best option would be to speak with your employer about their reimbursement policy. Many employers are willing to reimburse mileage at the standard IRS rate (currently 67 cents per mile for 2024) if you bring it up. With 240 miles weekly, that's about $160 in weekly expenses that should reasonably be covered by your employer.

I had almost the exact same situation last year and found a tool that was super helpful. I used https://taxr.ai to upload all my mileage logs and employment documents, and it analyzed everything to tell me exactly what I could claim. It saved me hours of research trying to figure out the temporary work location rules. For me, they confirmed I couldn't take the federal deduction as a W-2 employee but showed me how to claim it on my state return (I'm in California though). They also found a few other deductions I hadn't considered related to my nursing supplies that my employer didn't reimburse. The tool basically takes all your documents and gives you a clear breakdown of what you can claim where. Way easier than trying to interpret conflicting tax advice online.

I went ahead and tried https://taxr.ai after seeing it mentioned here, and wow, it was actually super helpful for my situation! I had a mix of W-2 and 1099 nursing jobs and wasn't sure how to handle my mileage. The tool analyzed my situation and clearly showed me that for my 1099 contract work, I could deduct all those miles on Schedule C. For my W-2 position, it confirmed I couldn't take the federal deduction but showed me how to claim it on my state return. What I really appreciated was that it organized all my documentation and created a proper mileage log that satisfied IRS requirements - my previous "detailed log" was apparently missing some key info that could have caused problems in an audit. It even calculated the exact deduction amount for me which was higher than I expected!

Have you tried calling the IRS directly to ask about your situation? I know their phone lines are impossible to get through, but I recently used https://claimyr.com and it got me connected to an IRS agent in about 15 minutes when I had a similar question. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with was actually super helpful and explained exactly what I could and couldn't deduct as a healthcare worker with multiple work locations. They also pointed me to some specific publications that addressed my situation. Definitely worth getting the official word directly from them.

I have to admit I was wrong about Claimyr. After my skeptical comment, I decided to give it a try since I've been trying to reach the IRS about a similar issue for weeks. I figured it was worth a shot even though I was convinced it wouldn't work. To my surprise, I got connected to an actual IRS representative in about 20 minutes. The agent confirmed that as a W-2 employee, I can't deduct mileage on my federal return regardless of whether the work sites are temporary. However, she directed me to Publication 463 which clarified some exceptions that might apply in my state. She also suggested I talk to my employer about setting up an accountable plan for reimbursement, which would be tax-free to me and deductible for them. That's actually a better solution than trying to claim the deduction myself. I'm still processing the fact that I got a real answer after weeks of trying on my own!

One option nobody's mentioned - ask your employer to switch your compensation structure. I was in a similar situation and my employer agreed to lower my hourly rate slightly but then reimburse mileage at the full IRS rate. This was actually better for both of us tax-wise. For you, reimbursements aren't taxable income, while your full wage is. For them, they can deduct the mileage reimbursement as a business expense. With 240 miles/week at the current rate (67¢/mile), that's about $8,400 annually in tax-free reimbursement instead of taxable wages. Just make sure they set up what the IRS calls an "accountable plan" for the reimbursements. Bring it up as a win-win - they might be surprisingly receptive.

Have you checked if your car insurance has increased because you're using your vehicle for work? Many policies charge more if you use your car for business purposes, and some won't cover accidents that happen while you're working unless you have a special rider. Just something else to consider when calculating your actual costs.

Great point about insurance coverage! I actually had to deal with this exact issue last year. Most personal auto policies have exclusions for "business use" but there's often a distinction between commuting to work and actually conducting business with your vehicle. For home health nurses, you're essentially using your car as a mobile office to travel between clients. I ended up having to add a business use endorsement to my policy, which cost about $200 extra annually, but it was worth it for the peace of mind. Another thing to consider - if you do get into an accident while traveling between patients, your employer's liability insurance might not cover you since you're using your personal vehicle. Some agencies carry "non-owned auto" coverage that extends to employees using personal vehicles for work, but many don't. Definitely worth calling your insurance agent to clarify your coverage before continuing with patient visits. The last thing you want is to be stuck with a huge bill because of a coverage gap!