Read our COVID-19 response
Close

CareRev is ready to support healthcare facilities through volatile staffing demands caused by the COVID-19 pandemic. Our flexible talent pool includes relevant specialties such as ER and ICU RNs, Respiratory Therapists, and CNAs. If you need staffing help and want to join our marketplace, please call (415) 223-9964. 

March 30, 2022

Top Tax Tips for 1099 Nurse Entrepreneurs

You’re ready to take the next step on your career as a nurse entrepreneur on the CareRev platform. We asked a tax expert to help you make the most of your new path. 

You’re ready to take the next step on your career and become a CareRev nurse entrepreneur. But to feel comfortable getting started, you want tax advice to help you make the most of your new professional path.

We asked Your Tax Coach founder Barbara Schreihans to share her expertise for our 1099 contractors. We've also provided access below to more exclusive information, so let's get started!

Recommendations for 1099 contractors

Disclaimer: This content is for educational purposes only. CareRev does not give tax advice. Please consult a licensed tax professional when completing your taxes. It is your responsibility to file taxes accurately.

Tax deductions

  • uniforms/shoes
  • mileage
  • vehicle expenses
  • subscriptions
  • continuing education
  • job supplies such as stethoscopes, BP monitors, face masks, ETC
  • cell phone
  • computer expenses
  • internet
  • licensing
  • travel expenses (50+ miles; e.g. lodging, air, meals)
  • uniform cleaning
  • safety items
  • books and journals

Business basics for 1099 contractors

  • Save all of your receipts and documentation.
  • Keep your business and personal incomes and expenses separate.
  • Get an employer identification number to identify your business entity.
  • Get a business bank account and credit card under your business entity name.
  • Any expense that meets the IRS definition of ordinary and necessary can be deducted.
  • To write off an expense, it must be incurred by your business as you’re intending to make a profit. This includes fully deductible and partially deductible expenses as well as those that won't be fully deducted the year they're incurred.

CareRev nurse completing 1099

Are nurse entrepreneurs business owners?

Yes. Though you are working shifts solo, you are considered a business to the IRS. That means you need to lay the right foundation so you do not run into issues when filing come tax day.

What type of business entity should nurses create?

As a 1099 contractor, I recommend an LLC for liability purposes. Here are 2 reasons why:

  • It protects you in case you're ever sued.
  • It’s a stepping stone to switching how you're taxed later on.

What happens after nurses create an LLC?

You can file for an EIN number. These are free at IRS.gov. With both an EIN and an LLC, you can then open a business bank account. That will help you ensure you don’t commingle funds.

Your direct deposits from your 1099 income should be deposited into that bank account. Your expenses should come from that bank account or from your business credit card.

Should 1099 contractors get an LLC if they already have nursing liability insurance?

Yes. Regardless of liability purposes, having an LLC will allow you to save in taxes later if you switch to an S corporation. That type of business can save you up to $22,000 per year in taxes.

Do 1099 contractors have to keep receipts for everything?

Yes. The IRS will not accept bank statements as a form of receipt. They do not show what was actually purchased. Document everything, such as business meals and business travel. It’s a good idea to keep details of business meals and travel on a calendar. In the case of an audit, those records can help support your case.

What if I am starting my first shift with CareRev soon and have not created my LLC yet?

Create it soon. All deductions are still applicable no matter what type of entity you are; however, it’s recommended to create an LLC you can so you can begin separating your income and expenses.

Want to put more tax tips to work for you? Download our exclusive content below on how to maximize your income and minimize your tax burden today!

Become a nurse entrepreneur

Get started now
To request assistance from our Support team, please submit the form and a representative will be in touch within 24 hours.

You may also contact us via phone or email:

Support contact info

Call: (415) 223-9964
Text: (415) 562-7238
Email: help@carerev.com