How a CPA for CRNAs Can Help You Save Thousands in Taxes
As a Certified Registered Nurse Anesthetist (CRNA), you have the potential to earn a high income, especially if you work as a 1099 independent contractor. However, higher earnings often come with a higher tax burden, and without proper planning, you could be overpaying the IRS by thousands of dollars each year.
Working with a CPA who specializes in CRNAs can significantly reduce your tax liability, maximize deductions, and ensure that you are taking advantage of every opportunity to keep more of your hard-earned money. Whether you are a W-2 employee, an independent contractor, or considering transitioning to 1099 work, a CPA who understands the unique financial landscape of CRNAs can provide valuable guidance.
The Unique Tax Challenges CRNAs Face
CRNAs face several tax challenges that other professionals may not encounter, especially those working as 1099 independent contractors. A specialized CPA can help you navigate:
Self-Employment Tax – If you are a 1099 CRNA, you are responsible for paying the full 15.3 percent self-employment tax (Social Security and Medicare). A CPA can help reduce this burden through strategic tax planning.
Quarterly Estimated Taxes – Unlike W-2 employees, independent contractors must pay estimated taxes four times per year. A CPA ensures you are making accurate payments to avoid IRS penalties.
Tax Deductions – CRNAs can claim a variety of business-related expenses, but missing deductions can lead to overpaying on taxes.
Business Structuring – Many CRNAs form an LLC or S-Corp to reduce tax liability, but choosing the right structure requires expert advice.
Retirement Planning – 1099 CRNAs do not have employer-sponsored 401(k) plans, but a CPA can help set up Solo 401(k) or SEP IRA plans to lower taxable income while saving for retirement.
Without a tax expert guiding you, it is easy to miss valuable opportunities that could save you thousands in taxes each year.
How a CPA for CRNAs Can Save You Money
1. Maximize Tax Deductions
Many CRNAs are unaware of all the deductions they are entitled to, leading to unnecessary tax payments. A CPA specializing in CRNA taxes can identify all eligible deductions, including:
Work-related travel expenses (mileage, airfare, lodging, meals)
Continuing education costs (certifications, conferences, courses)
Professional fees (malpractice insurance, licensing, association memberships)
Home office deduction (if you use a dedicated space for administrative work)
Medical equipment and supplies (stethoscope, scrubs, job-related tools)
Technology and software used for work (laptops, scheduling software, billing tools)
Properly tracking and deducting these expenses can significantly lower your taxable income, putting more money back in your pocket.
2. Reduce Self-Employment Taxes with an S-Corporation
If you are earning over $100,000 as a 1099 CRNA, your self-employment tax liability can be substantial. One of the best tax-saving strategies is to form an S-Corporation (S-Corp).
With an S-Corp:
You pay yourself a salary, which is subject to self-employment tax.
The remaining income is taken as distributions, which are not subject to self-employment tax.
For example, if a CRNA earns $200,000 per year:
As a sole proprietor, the entire amount is subject to self-employment tax, resulting in over $30,000 in additional taxes.
As an S-Corp, they could pay themselves a reasonable salary of $100,000 and take the rest as distributions, potentially saving $15,000 or more.
A CPA who understands CRNA finances can help you set up and maintain an S-Corp to maximize your tax savings while staying compliant with IRS regulations.
3. Optimize Retirement Contributions for Tax Savings
Many CRNAs do not take full advantage of tax-advantaged retirement accounts, leaving money on the table. A CPA can help you set up:
Solo 401(k): Contribute up to $66,000 per year tax-free (2023 limits).
SEP IRA: Contribute 25 percent of net earnings, reducing taxable income.
Traditional or Roth IRA: Additional retirement savings options.
By maximizing these contributions, you can reduce your taxable income while securing your financial future.
4. Ensure Proper Quarterly Tax Payments
The IRS requires 1099 contractors to pay quarterly estimated taxes. Many CRNAs either underpay and face penalties or overpay and reduce their cash flow.
A CPA will:
Calculate the correct quarterly tax amount based on your income and deductions.
Help you avoid IRS penalties for underpayment.
Ensure you do not overpay and tie up unnecessary funds with the IRS.
Proper quarterly tax management helps you stay compliant while keeping more money available for investing or personal use.
5. Provide Year-Round Tax Planning
A CPA specializing in CRNAs does not just file your taxes once a year; they provide year-round financial guidance to ensure you are making the right financial moves. This includes:
Planning ahead for large expenses to minimize taxable income.
Adjusting tax strategies based on new IRS regulations.
Helping you reinvest tax savings into long-term financial goals.
By having a tax expert who understands your unique financial situation, you gain peace of mind knowing you are paying the least amount of tax legally possible.
Final Thoughts: Invest in a CPA and Keep More of Your Money
CRNAs have the potential to save thousands of dollars each year through strategic tax planning and expert financial guidance. Whether you are a W-2 employee looking to transition to 1099 or an established independent contractor wanting to lower your tax burden, working with a CPA who specializes in CRNA taxes is one of the best financial moves you can make.
At Commission Based Financial Consulting (CBFC), we help CRNAs navigate tax planning, optimize business structures, and maximize deductions. On average, our clients save $18,000 in their first year working with us.
If you want to keep more of your income and stop overpaying on taxes, contact us today to develop a customized tax strategy for your CRNA career.
