What can home health aides deduct on taxes?

1099 home health aides can deduct mileage between clients (70¢/mile in 2025), caregiving supplies like gloves and PPE, certification and training costs, work-only uniforms and shoes, the business portion of their phone, and any liability insurance or bonding.

Do independent caregivers pay self-employment tax?

Yes. If you receive a 1099 (rather than a W-2) you owe the full 15.3% self-employment tax on net profit plus income tax. Note that some family caregivers paid through certain Medicaid programs may qualify for special income exclusions — check your situation with a tax pro.

Can home health aides deduct mileage?

Yes — miles driven between clients and to work errands are deductible at 70¢/mile for 2025. Keep a log with dates, destinations and business purpose. Ordinary commuting from home to your first stop and home from your last is not deductible.

How much should a home health aide set aside for taxes?

Around 20-30% of net income after deductions is a good target depending on your bracket and state. Because no employer withholds, make quarterly estimated payments to avoid penalties.

Self-Employment Tax Calculator for Home Health Aides (2025)

How much tax does a self-employed home health aide pay? A home health aide earning $48,000 with about $7,000 in business expenses owes roughly $8,237 in total federal tax for 2025 — a 15.3% self-employment tax plus federal income tax — or about $2,059 per quarter. A common rule of thumb is to set aside 25–30% of net income for taxes. Use the calculator below for your own numbers and state.

Independent home health aides and caregivers paid on a 1099 owe the full 15.3% self-employment tax plus income tax on net profit. This calculator estimates your taxes and shows the caregiver deductions that lower them.

Annual gross income (before expenses)

Total business expenses (incl. deductions below)

State

This tool provides estimates for educational purposes only and is not tax advice. Tax rules change; figures are based on 2025 federal rules. Consult a tax professional for your specific situation.

Deductions Home Health Aides often miss

Independent home health aides commonly gross $35,000-$60,000 per year. As a 1099 worker you pay 15.3% self-employment tax on net profit plus income tax with no withholding — set aside about 20-30% and pay quarterly estimates.

Mileage between clients: Driving from one client's home to another and to work errands is deductible at 70¢/mile (2025), or use actual vehicle costs. Commuting from home to your first client of the day is generally not deductible.
Medical & caregiving supplies: Gloves, masks, sanitizer, PPE, first-aid items and other consumables you buy for client care are deductible business expenses.
Certifications & training: CNA/HHA certification renewals, CPR/first-aid certification and required training courses are deductible.
Uniforms & work shoes: Scrubs and non-slip work shoes used only for work (not suitable for everyday wear) plus laundering are deductible.
Phone, liability insurance & bonding: The business-use portion of your cell phone, any professional liability/caregiver insurance and bonding fees are deductible.

Common tax mistakes for home health aides

Not tracking mileage between clients — often the single largest deduction for aides.
Failing to save for taxes and pay quarterly estimates, then owing a lump sum at filing.
Deducting non-deductible commuting from home to the first client and back from the last.
Not keeping receipts for small supply purchases that add up over the year.

How self-employment tax works

As a self-employed home health aide, you pay a 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, plus federal and state income tax. A common rule of thumb is to set aside 25–30% of your net income for taxes.

Quarterly estimated tax deadlines (2025)

If you expect to owe $1,000 or more, the IRS requires quarterly estimated payments. For 2025 income the deadlines are: April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026. Missing them can trigger underpayment penalties. The calculator above estimates your quarterly amount.

Frequently asked questions

What can home health aides deduct on taxes?: 1099 home health aides can deduct mileage between clients (70¢/mile in 2025), caregiving supplies like gloves and PPE, certification and training costs, work-only uniforms and shoes, the business portion of their phone, and any liability insurance or bonding.
Do independent caregivers pay self-employment tax?: Yes. If you receive a 1099 (rather than a W-2) you owe the full 15.3% self-employment tax on net profit plus income tax. Note that some family caregivers paid through certain Medicaid programs may qualify for special income exclusions — check your situation with a tax pro.
Can home health aides deduct mileage?: Yes — miles driven between clients and to work errands are deductible at 70¢/mile for 2025. Keep a log with dates, destinations and business purpose. Ordinary commuting from home to your first stop and home from your last is not deductible.
How much should a home health aide set aside for taxes?: Around 20-30% of net income after deductions is a good target depending on your bracket and state. Because no employer withholds, make quarterly estimated payments to avoid penalties.