Quick Answer
Yes, nurses can deduct licensing fees, certification costs, and required continuing education as unreimbursed employee expenses if they itemize deductions. However, under current tax law (2018-2025), these miscellaneous itemized deductions are suspended. Starting in 2026, they'll be deductible again subject to the 2% AGI threshold.
Best Answer
Robert Kim, CPA
Best for W-2 nurses working for hospitals, clinics, or healthcare systems who pay for their own licenses and certifications
Can nurses deduct licensing and certification costs?
Yes, nursing licenses, specialty certifications, and required continuing education are legitimate tax deductions — but the timing matters significantly due to recent tax law changes.
Current tax years (2024-2025): These expenses are NOT deductible for W-2 employees due to the Tax Cuts and Jobs Act suspension of miscellaneous itemized deductions.
Starting 2026: These expenses will be deductible again as miscellaneous itemized deductions, subject to the 2% of adjusted gross income (AGI) threshold.
Example: RN with $75,000 salary and typical expenses
Let's say you're an RN earning $75,000 who pays for:
Starting in 2026, you could deduct the amount over 2% of your AGI:
However, if you had additional unreimbursed work expenses (uniforms, equipment, etc.) totaling $1,600, then:
What qualifies as deductible nursing expenses
Always deductible (when allowed):
Sometimes deductible:
Never deductible:
Comparison: Different nursing roles and deduction potential
Special consideration: Multiple state licenses
Nurses working in multiple states (common for travel nurses) can deduct all required state licenses. For example:
What you should do
1. Track all expenses now: Even though they're not currently deductible, keep records for potential future amendments or changes
2. Save receipts: License renewals, certification costs, CE course fees, professional dues
3. Document work-relatedness: Keep emails or letters showing employer requirements
4. Plan for 2026: If you expect significant expenses, consider timing renewals strategically
Use our return-scanner to identify any missed deductions from previous years, and our refund-estimator to project your 2026 tax savings when these deductions return.
Key takeaway: Nursing license and certification costs will be deductible again starting in 2026, but only amounts exceeding 2% of your income. Track everything now to maximize future tax savings.
*Sources: [IRS Publication 529](https://www.irs.gov/pub/irs-pdf/p529.pdf), Tax Cuts and Jobs Act of 2017*
Key Takeaway: License and certification costs will be deductible again in 2026, but only amounts over 2% of your income — so track everything but don't expect huge deductions unless you have significant expenses.
Typical annual licensing and certification costs by nursing specialty and role
| Nursing Role | Annual Expenses | 2% AGI Threshold (at $75K) | Likely Deductible Amount (2026+) |
|---|---|---|---|
| Staff RN | $800-$1,200 | $1,500 | $0-$200 |
| Travel RN | $2,000-$4,000 | $1,700 (at $85K) | $300-$2,300 |
| Nurse Practitioner | $2,500-$4,500 | $2,200 (at $110K) | $300-$2,300 |
| Certified Nurse Anesthetist | $3,000-$5,000 | $3,600 (at $180K) | $0-$1,400 |
| Per Diem RN | $1,000-$2,500 | $1,500 | $0-$1,000 |
More Perspectives
Diana Flores, EA
Best for travel nurses who work through agencies and often have higher licensing and certification costs across multiple states
Travel nurses have unique deduction opportunities
As a travel nurse, you likely have significantly higher licensing and certification costs than staff nurses — which means you're more likely to benefit when these deductions return in 2026.
Higher expense threshold means better deductions
Travel nurses typically spend $2,000-$4,000 annually on:
Example: Travel nurse earning $85,000 with $3,200 in expenses:
Multi-state licensing considerations
Many travel nurses need licenses in 4-6 states, creating substantial costs:
Agency reimbursements affect deductibility
If your travel agency reimburses licensing or certification costs, you cannot deduct them. However, many agencies don't reimburse everything, leaving you with out-of-pocket expenses that qualify.
Track separately:
Key takeaway: Travel nurses typically have the highest licensing costs in nursing, making them most likely to exceed the 2% AGI threshold and benefit from deductions starting in 2026.
Key Takeaway: Travel nurses with multi-state licenses and higher expenses are most likely to exceed the 2% threshold and see real tax savings from these deductions.
Robert Kim, CPA
Best for NPs, CRNAs, CNMs, and other advanced practice nurses who have additional certification requirements and often carry their own malpractice insurance
Advanced practice nurses have higher deductible expenses
Nurse practitioners and other advanced practice nurses typically have significantly higher annual expenses for licensing, certification, and professional requirements — often $2,000-$4,000 per year.
Additional certifications and requirements
Beyond basic RN licensing, you likely pay for:
Example: Family NP earning $110,000 with $3,400 in annual expenses:
Malpractice insurance considerations
If you carry your own professional liability insurance (common for independent NPs), this is fully deductible as a work-related expense. Many employed NPs still carry supplemental coverage, which also qualifies.
CME vs. CEU requirements
Advanced practice nurses often need both:
Key takeaway: Advanced practice nurses have the highest professional expenses in nursing, making them most likely to see substantial tax benefits when licensing and certification deductions return in 2026.
Key Takeaway: NPs and advanced practice nurses have the highest professional costs and are most likely to exceed the 2% threshold, potentially saving $200-$500+ annually in taxes starting 2026.
Sources
- IRS Publication 529 — Miscellaneous Deductions
- Tax Cuts and Jobs Act of 2017 — Suspension of miscellaneous itemized deductions
Related Questions
Reviewed by Robert Kim, CPA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.