The Ultimate CRNA Tax Deduction Checklist: Maximize Your 1099 Savings
As a Certified Registered Nurse Anesthetist (CRNA) working as a 1099 independent contractor, you have the opportunity to maximize your earnings and minimize your tax liability by leveraging all available deductions. Unlike W-2 employees, 1099 CRNAs can claim a wide range of business-related expenses to reduce taxable income, saving thousands of dollars annually.
However, missing out on deductions or failing to track them properly can lead to overpaying taxes or even IRS scrutiny. That is why having a comprehensive tax deduction checklist is essential.
Use this guide to ensure you are claiming every tax deduction possible and keeping more of your hard-earned money.
Why CRNA Tax Deductions Matter
1099 CRNAs are considered self-employed, meaning they are responsible for both income tax and self-employment tax, which includes Social Security and Medicare. Without proper tax planning, you could be paying 15.3 percent in self-employment tax alone, not to mention federal and state income taxes.
Claiming all allowable deductions lowers your taxable income, reducing both self-employment tax and your overall tax burden. Proper bookkeeping and record-keeping are essential to ensure you can substantiate your deductions if audited.
The CRNA 1099 Tax Deduction Checklist
1. Work-Related Travel Expenses
Many CRNAs travel between hospitals, surgery centers, or different states for work. These travel-related expenses are deductible:
Mileage and gas: Keep a log of all miles driven for work. The IRS mileage rate for 2023 is 65.5 cents per mile.
Airfare, hotels, and rental cars: If traveling for work assignments, these costs are deductible.
Meals while traveling: You can deduct 50 percent of meals while on business trips.
Using a mileage-tracking app can help automate mileage logging and ensure accuracy.
2. Licensing and Professional Fees
CRNAs are required to maintain licenses and certifications. These expenses are fully deductible:
State licensure fees
NCCAA recertification fees
DEA registration fees
Malpractice insurance
Professional memberships such as AANA and state CRNA associations
Keeping receipts for all certification renewals and licensing fees in a digital folder will make tax filing easier.
3. Continuing Education and Training
To maintain licensure and stay competitive, CRNAs often take courses, attend conferences, or earn additional certifications. These are all tax-deductible:
CMEs and CEUs
Conference registration fees
Online courses and webinars
Medical journals and educational subscriptions
If traveling for a conference, lodging, airfare, and transportation costs may also be deductible.
4. Home Office Deduction
If you regularly use part of your home for administrative tasks such as scheduling contracts, invoicing, or charting, you may qualify for the home office deduction:
A portion of your rent or mortgage
Utilities, including electricity, internet, and phone
Office furniture and equipment such as a desk, chair, or printer
To qualify, your home office must be used exclusively for business purposes.
5. Equipment and Work Supplies
Any tools, scrubs, or medical supplies required for your work as a CRNA are deductible:
Stethoscope and medical instruments
Scrubs, lab coats, and shoes
Medical bags and equipment cases
Keeping receipts for every purchase ensures that you can track deductions accurately.
6. Technology and Software
Many CRNAs use technology to streamline work and stay organized. These work-related expenses are deductible:
Laptop, tablet, or smartphone if used for work
Job-search platforms and subscription fees
Scheduling and billing software
If you use your phone or internet for work, you can deduct a portion of your monthly bill.
7. Business Insurance and Legal Fees
CRNAs operating as independent contractors should consider additional liability protection beyond malpractice insurance:
Business liability insurance
Legal and contract review fees
If you hire a CPA or tax consultant, their fees are also tax-deductible.
8. Retirement Contributions
CRNAs have access to high-contribution retirement plans that provide major tax savings:
Solo 401(k): Contribute up to $66,000 per year (2023 limits)
SEP IRA: Contribute up to 25 percent of net earnings
Traditional or Roth IRA: Additional savings options
Contributions lower your taxable income, helping you save now while preparing for the future.
How to Stay Organized for Tax Time
Use accounting software – Tools like QuickBooks Self-Employed can track expenses automatically.
Keep digital copies of receipts – Store documents in cloud storage for easy access.
Track mileage automatically – Apps like MileIQ ensure you do not miss deductible mileage.
Hire a tax professional – A CPA who understands 1099 CRNAs can help you maximize deductions and avoid IRS issues.
Final Thoughts: Do Not Leave Money on the Table
As a 1099 CRNA, you have more tax-saving opportunities than W-2 employees, but only if you take advantage of them. Tracking expenses, maximizing deductions, and planning ahead can save you thousands of dollars each year.
At Commission Based Financial Consulting (CBFC), we specialize in helping CRNAs navigate tax planning and ensure they keep more of what they earn. On average, our clients save $18,000 in their first year working with us.
Ready to maximize your CRNA tax savings? Contact us today to develop a tax strategy tailored to your needs.
