The CRNA Tax Deductions Cheat Sheet: How to Legally Save Thousands on Your Taxes

As a Certified Registered Nurse Anesthetist (CRNA), your hard work and expertise allow you to earn a competitive salary. However, without proper tax planning, a significant portion of your income could be lost to taxes. Whether you work as a W-2 employee or a 1099 independent contractor, you may be missing out on thousands of dollars in tax deductions.

Many CRNAs overpay their taxes simply because they don’t take advantage of all the available deductions. If you want to legally lower your tax bill and keep more of your income, this CRNA Tax Deductions Cheat Sheet is your ultimate guide.

1. Why Tax Deductions Matter for CRNAs

Deductions lower your taxable income, meaning you pay taxes on less money and keep more of your earnings. However, many CRNAs miss out on key deductions because they don’t know what qualifies or fail to track their expenses properly.

The right tax strategy can save CRNAs $10,000 – $20,000 or more per year by reducing taxable income through work-related expenses, business deductions, and retirement contributions.

Let’s break down the top deductions every CRNA should be claiming.

2. Top Tax Deductions for 1099 & W-2 CRNAs

A. Work-Related Travel Expenses

If you travel for work, many of your travel-related costs can be deducted.

✔ Mileage & Gas: The IRS allows a standard mileage deduction (65.5 cents per mile in 2023).
✔ Flights, Hotels, & Rental Cars: If you travel for assignments, these costs are fully deductible.
✔ Meals While Traveling: You can deduct 50% of meals if you’re traveling for work purposes.

💡 Tip: Use a mileage tracking app like MileIQ to log your business miles automatically.

B. Licensing, Certifications, and Malpractice Insurance

CRNAs must maintain active licenses and professional insurance, and these costs are fully deductible.

✔ State Licensure Fees
✔ NCCAA Recertification Fees
✔ DEA Registration Fees
✔ Malpractice Insurance Premiums
✔ Professional Memberships (AANA, State CRNA Associations, etc.)

💡 Tip: Save all receipts and renewal confirmations in a digital folder to make tax time easier.

C. Continuing Education and Training

Education is a necessary expense for CRNAs, and many costs can be deducted, including:

✔ CEU & CME Courses
✔ Medical Journals & Professional Subscriptions
✔ Conferences, Seminars, and Workshops

💡 Tip: If you travel to a conference, both registration fees and travel expenses can be deducted.

D. Home Office Deduction (For 1099 CRNAs)

If you work from home for administrative tasks like scheduling or billing, you may qualify for the home office deduction.

✔ A portion of your rent/mortgage
✔ Utilities (electricity, internet, phone)
✔ Office furniture & equipment (desk, chair, printer)

💡 Tip: To qualify, your home office must be used exclusively for work.

E. Work Equipment & Medical Supplies

As a CRNA, you likely purchase job-related tools and supplies, which are fully deductible.

✔ Stethoscope & Medical Instruments
✔ Scrubs, Lab Coats, & Shoes
✔ Medical Bags & Equipment Cases
✔ Laptops, Tablets, & Work Phones (if used for business purposes)

💡 Tip: If you use your personal phone for work, you can deduct a percentage of your monthly bill.

F. Business Insurance & Professional Services

1099 CRNAs often need business-related insurance and professional services, which are fully deductible.

✔ Business Liability Insurance
✔ Legal Fees for Contract Review
✔ CPA & Tax Preparation Fees

💡 Tip: A CPA who specializes in CRNAs can help maximize deductions and reduce taxes legally.

G. Reducing Self-Employment Tax with an S-Corp (For 1099 CRNAs)

One of the biggest expenses for 1099 CRNAs is self-employment tax (15.3%), which covers Social Security and Medicare. However, forming an S-Corp can lower this tax burden significantly.

With an S-Corp, you can split income between salary and distributions, where distributions are NOT subject to self-employment tax.

Example: Tax Savings with an S-Corp

CRNA IncomeSole Proprietor (1099)S-Corp (Salary: $120K, Distributions: $130K)Tax Savings$250,000Pays 15.3% on full $250K ($38,250)Pays 15.3% only on $120K salary ($18,360)$19,890 saved

💡 Tip: A CRNA CPA can help set up and maintain your S-Corp properly while staying IRS-compliant.

H. Retirement Contributions: Reduce Taxes While Saving for the Future

Unlike W-2 employees, 1099 CRNAs must manage their own retirement savings. However, maximizing retirement contributions can significantly reduce taxable income.

✔ Solo 401(k): Contribute up to $66,000 per year (as both employer and employee).
✔ SEP IRA: Contribute up to 25% of net earnings (max limit: $66,000).
✔ Traditional or Roth IRA: Additional savings options for tax-deferred growth.

💡 Tip: A $50,000 Solo 401(k) contribution reduces taxable income from $250,000 to $200,000, saving $15,000+ in taxes.

I. Health Insurance & HSA Contributions

Since 1099 CRNAs don’t receive employer-sponsored health insurance, you can deduct the cost of private health insurance premiums.

✔ Health Insurance Premiums (if self-paid)
✔ Health Savings Account (HSA) Contributions (if you have a high-deductible health plan)

💡 Tip: HSA contributions grow tax-free and can be used for future medical expenses.

3. How to Track & Maximize Your Deductions

✔ Use Accounting Software – QuickBooks Self-Employed, Expensify, or FreshBooks to automate expense tracking.
✔ Keep Digital Receipts – Store them in Google Drive, Dropbox, or an expense tracker app.
✔ Hire a CRNA-Specialized CPA – They ensure you claim every possible deduction while staying compliant with IRS rules.

Final Thoughts: Save Thousands with Smart Tax Planning

CRNAs have many opportunities to reduce their tax bill, but without proactive planning, you could be overpaying by thousands each year. Whether you’re a W-2 or 1099 CRNA, utilizing every possible deduction, considering an S-Corp, and maximizing retirement contributions will help you legally lower your tax burden.

At Commission Based Financial Consulting (CBFC), we specialize in helping CRNAs optimize their tax strategy, structure their business efficiently, and maximize deductions. On average, our clients save $18,000 in their first year working with us.

💰 Want to keep more of your earnings? Contact us today for a personalized CRNA tax strategy!