What New Legislation Could Mean For Nurses And Their Tax Returns
A big move in the U.S. Senate could benefit nurses greatly regarding their tax returns!
Healthcare workers put in the hours during the recent COVID pandemic and have risked their lives! As we can see in recent years, the need for excellent healthcare workers is a must. As a way to encourage more to join the essential workforce, senators have introduced legislation that could help nurses financially.
More specifically, this bill could exempt nurses from paying taxes on student loans and scholarships, giving them much-needed financial relief as it's no secret that becoming a nurse requires years and years of college education that typically puts them thousands of dollars in debt.
It is important to note that this bill would only affect nurses in the Federal Nurse Corps. The proposed legislation is called the Nurse Corps Tax Parity Act.
This is the first step to alleviating some of that financial burden, which would encourage more people to join the workforce and supply us with more qualified nurses. Currently, Federal Nurse Corps scholarships and loan forgiveness are subject to federal income taxes, which burdens nurses who have chosen public service.
The proposed legislation will fix this issue by removing the IRS tax code for scholarships and loan forgiveness received by nurses in the Nurse Corps.
This will allow nurses in public service roles to no longer have to pay taxes on these financial aids.
Here is what two senators have to say about the proposed legislation.
"We need more nurses in order to provide the best possible care for patients, which is why I am proud to cosponsor the Nurse Corps Tax Parity Act… this bill will strengthen our healthcare
workforce and put more money in the pockets of nurses who selflessly serve some of our most vulnerable communities." - Sen. Murray.
"Nurse Corps members build healthier communities in the areas of greatest need, and it is terrible public policy and frankly offensive that nurses are singled out for extra taxation as compared to other health professionals—it's long past time to put an end to this." - Sen. Merkley.
This bill is in the first stage of the legislative process. It was introduced into Congress on May 4, 2023. It will typically be considered by the committee next before it is possibly sent on to the House or Senate as a whole. Here is a link to the status of the bill.
