CRNA 1099 Contractor Mini Portal

Posted Sunday, January 14 2024

We have written several different articles about various Certified Registered Nurse Anesthetist tax matters including S Corp elections, CRNA tax deductions, multi-state payroll, nomadic and itinerant issues, among other exciting things. Several hospitals are mixing it up and converting more and more CRNAs from W-2 to 1099 contractor positions. It can be a win-win if you are willing to just a few more small headaches to your life.

This CRNA 1099 contractor mini portal is a nice collection of things to consider. Enjoy!

CRNA Tax Deductions

WCG has more than 190 Certified Registered Nurse Anesthetists as business owners, and it is one of the fastest growing segments in our client base in 2022. As such, naturally we have had several discussions with CRNAs regarding their tax deductions.

Increased tax deductions is one of the primary reasons to ditch that W-2 job and convert to a 1099 contractor. Prior to the Tax Cuts and Jobs Act of 2017, W-2 employed CRNAs could deduct expenses, such as mileage and home office, associated with their work on Form 2106 (Employee Business Expenses) and eventually on Schedule A of their 1040 tax return. That is no more, but in 1099 land, all these wonderful business tax deductions are alive and well.

No More S Corp for Traveling CRNAs

WCG continuously reviews our services to ensure we are providing the best tax strategy with efficiency. Upon a lot of discussion and reflection, we are recommending that nomadic or traveling CRNAs do not operate as an S Corp. This includes any professional that provides direct services to clients or patients. Why?

The fees and hassles of closing payroll accounts and opening new ones, and continuously updating payroll plans, is eating into the S Corp savings to the point where it no longer makes sense. It also creates a bunch of homework for you and for us which can be unnecessarily distracting.

Tax Reduction Strategies

One of our primary focuses at WCG is ensuring you are paying the least amount of taxes allowed by law. Some of our other primary focuses are helping you build wealth and leverage the most of your financial worlds for you and your family. However, these focuses or objectives are not isolated; they are very much related to each other and intertwined.

Before we run through several tax reduction and tax avoidance ideas, let’s talk about some basic concepts.

CRNA Tax Return Preparation

As mentioned throughout our articles aimed at CRNAs is the slight difference between being a business owner in the truest sense, and being an independent contractor. A 1099 contractor performing CRNA services might have converted from a W-2 and simply see the arrangement as a new way of being paid. True! However, the two biggest challenges when converting are-

Need to track expenses (tax deductions)
Need to pay your taxes from your cash (versus having them deducted from a paycheck… out of sight, out of mind)

The three massive wins for “going 1099” are-

More pay
More freedom (use your sleepy sleepster skills as a lifestyle enhancement)
Less taxes (although you see big bucks being shot out of the money canon, you actually save taxes overall)

To help with the tracking of expenses and tax deductions part above, here are some helpful resources-

Expense Worksheet Excel

Expense Worksheet PDF

Tax Prep Checklist (get started)

LLCs and S Corp Book

WCG CPAs & Advisors and Jason Watson, CPA, have released the 2023-2024 Edition of Taxpayer’s Comprehensive Guide to LLCs and S Corps. Over 400 pages of pure pleasure! This edition has updated 2024 data such as IRA and 401k limits including Social Security wage limits, but it also has a bunch of new information spread out various chapters such as customized multi-entity structures, expanded reasonable shareholder salary sections, more tax reduction mechanics among various little tidbits gleaned from hundreds of small business consultations. Riveting!

CRNA 1099 Contractor Help

Do you need help with launching your CRNA 1099 contractor business? Are you wondering if you should leverage the S Corp election? Not sure about the specific CRNA tax deductions that are available? Let’s chat!

We typically schedule a 20-minute complimentary quick chat with one of our Partners or Senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax prep, and more importantly tax strategy and planning?

Should we need to schedule an additional consultation, our fee is $250 for 40 minutes. Fun! If we decide to press forward with a Business Advisory or Tax Patrol Services engagement, we will credit the consultation fee towards those services.

Appointments are typically held through Microsoft Teams and are scheduled on weekdays during the work day. Yes, we can easily accommodate nights and weekends, but those are reluctantly agreed to after some eye-rolling and complaining. Additionally, our schedules are more compressed during tax season (who would have thought, right?).

Shockingly we will return all appointment requests via email with 24-36 hours weather-permitting, or perhaps a phone call (if the moment strikes us). No black holes here! In a hurry, please call us at 719-387-9800 or use our chat service in the lower right corner or the button below.

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WCG CPAs & Advisors is a boutique yet progressive CPA firm located in Colorado Springs serving small business owners and the medical community.