Tax season can feel overwhelming for CRNAs working as 1099 contractors. Unlike W-2 employees, self-employed CRNAs are responsible for tracking income, managing expenses, making estimated tax payments, and filing accurate returns without the help of an employer’s payroll department.
A clear checklist can make tax season far more manageable. By preparing early and reviewing each step carefully, CRNAs can reduce the risk of errors, missed deductions, and avoidable penalties.
1. Gather All Income Documents (Avoid Underreporting)
Before filing, CRNAs should gather all income documents related to the tax year. Waiting until every form has arrived helps prevent underreporting, which is one of the most common filing mistakes.
Income documents may include Forms 1099-NEC, 1099-MISC, and 1099-K, depending on how and where you were paid. If you work with multiple facilities or payment platforms, you may receive more than one form.
The IRS advises taxpayers to wait until they have all required tax reporting documents before filing to ensure accuracy and avoid amended returns.
Having all documents in hand by early February allows time to reconcile amounts against your records and address discrepancies before filing.
2. Track and Organize Expenses (Avoid Missed Deductions)
Good bookkeeping is not just about preparing a tax return; it’s about understanding how your business is performing. For CRNAs, poor record-keeping often leads to missed deductions and higher tax bills than necessary.
Throughout the year, CRNAs should maintain organized records of receipts, invoices, and mileage logs for work-related expenses. Digitizing receipts and categorizing expenses consistently makes tax preparation significantly easier.
A lack of documentation can result in legitimate deductions being overlooked or unsupported if questions arise later.
Common CRNA Deductions to Document
CRNAs should review whether they have documentation for tax deductions such as:
- Professional licenses, certifications, and continuing education
- Malpractice insurance and professional dues
- Travel, lodging, and meals related to locum tenens assignments
- Phone, internet, and technology used for work
- Medical equipment, supplies, and uniforms
3. Pay Quarterly Estimated Taxes on Time (Avoid Penalties)
Unlike W-2 employees, 1099 CRNAs do not have federal taxes withheld from each paycheck. Instead, they are generally required to make quarterly estimated tax payments if they expect to owe tax.
Estimated payments are typically due in April, June, September, and January. Missing these payments or paying too little can result in penalties and interest.
If you are approaching tax season and have not made all required estimated payments, it is important to calculate what you owe as soon as possible and ensure at least the January payment for the fourth quarter is addressed.
4. Double-Check Personal Info and Calculations (Prevent Filing Errors)
Before submitting a return, CRNAs should carefully review all personal information and calculations. Simple errors can delay processing or trigger IRS notices.
Key items to review include:
- Correct spelling of names
- Accurate Social Security Numbers
- Proper filing status
- Consistent income totals across forms and schedules
The IRS emphasizes that math errors and incorrect personal information are among the most common filing mistakes and can slow refunds or require corrections.
https://www.irs.gov/newsroom/tips-to-help-people-make-tax-filing-easier
5. Leverage All Available Tax Breaks (Don’t Leave Money on the Table)
Before finalizing a return, CRNAs should review whether they qualify for tax breaks that can reduce their overall tax liability.
One key consideration is the Qualified Business Income (QBI) deduction. For eligible CRNAs, this deduction can allow up to 20% of qualified business income to be excluded from federal income tax.
Eligibility depends on income levels, filing status, and the nature of the work performed. More details specific to healthcare professionals are covered in locum tenens qualified business deductions here.
Reviewing these items before filing helps ensure opportunities are not missed.
6. Mark Key Deadlines and File (or Extend) on Time
Missing filing deadlines can be costly. CRNAs should mark key tax dates well in advance and plan accordingly.
If you are unable to file by the April deadline, filing an extension gives you additional time to submit the return, but it does not extend the time to pay taxes owed. Any unpaid balance may still accrue penalties and interest.
Timely filing or properly extending helps reduce stress and avoid unnecessary costs associated with late submissions.
7. Consider Professional Help or Tax Software (Ensure Accuracy & Peace of Mind)
CRNAs with multiple income sources, significant deductions, or complex situations may benefit from additional support.
Two common options include:
- Using reputable tax software designed for self-employed individuals
- Working with a tax professional familiar with healthcare and 1099 income
Electronic filing with quality software or professional oversight can significantly reduce errors and improve accuracy, especially when multiple forms and deductions are involved.
Conclusion
For CRNAs working as independent contractors, tax season requires more attention and preparation than it does for traditional employees. Following a clear checklist helps reduce mistakes, capture all eligible deductions, and stay compliant with IRS requirements.
By gathering documents early, keeping organized records, meeting estimated tax obligations, and reviewing returns carefully, a 1099 CRNA can turn tax season into a manageable process instead of a stressful one.
If you have specific questions about filing or want help reviewing your situation, many CRNAs choose to work with ongoing tax advisory services to stay compliant and plan ahead.
You can also reach out directly to discuss your tax situation. Schedule a consultation to file with confidence and avoid common tax-season pitfalls.
