Ever wondered how you can reduce the tax burden for your CRNA business the legal way? Of course, you have because who wouldn’t want to cut costs and make the most out of their income? Surely not you. This is why in this post, I’m going to teach you how to reduce your tax burden by making use of your business expenses. Not sure what counts for a CRNA business expense for 2020? Not to worry as I’m going to share with you 10 key business expenses for a small CRNA business.
It is a 5 step process and if you decide to miss one of these steps, it may hinder you from maximizing on business expenses as a CRNA business. Being in independent contract as a CRNA can be very overwhelming. You have decided that you’re giving 1099, going to start your own business but at the same time, you’re like you want to have control over your practice but then you realize that wow, there’s so much that goes into becoming a small CRNA business. So, I believe it’s so important to decrease the tax burden as a new CRNA with a business. Knowing these 10 different tips and advice for maximizing your business expenses will surely help you in your future. It would also save you money at the end of the year. Let’s get right into these 10 tips
- Retirement Planning
If you do an IRA, a self IRA, if you do a 401(k), these are instances where you would be able to use that as a business expense. Therefore, it is not taxed.
- Mileage
If you are traveling to a specific location, maybe it’s 30 minutes, maybe it’s an hour, the mileage for that travel is tax deductible.
On the IRS website for 2020, it’s approximately $0.50 per mile.
- Education Credits
We all love education and continuing education. You may be an RN, that is, going to become a traveler, or you are a CRNA, that is, becoming a locum. You may want to go back to school for your doctorate, for example, have a master’s or Ph.D. in CRNA. Returning to school is something that can reduce your tax burden. There is something called Lifetime Learning Credit that you can utilize. This includes tuition, fees, and books. If you are someone who loves to travel and see the world, there are tons of conferences all around the world and you could say to yourself “You know what, I want to go to Europe and I want to go to Italy. There’s a conference in Italy and I really want to go there.” The good news is your flights, meals, as well as your conference fees, are all tax deductible.
- Business Equipment
Equipment for your business, scrubs, stethoscopes, peripheral nerve stimulators, compression stockings, your hats, office supplies, your license, certifications all count as tax deductibles. Now, piggyback on that as well as having space for your business. Say you don’t have an office and you are utilizing that space for your business, there is a certain percentage that is tax deductible.
- Health Insurance
Now, being an independent contractor, you own your own business. So, you have to deal with getting your benefits that are tax deductible. So, health insurance for you and your family is all included in that plan. Health insurance is a business expense and it is surely tax deductible
- Flexible Medical Savings Account
Here, you can put money in for the future. So, money for medications and any unforeseen medical emergency can definitely be stored there while also proffering you with tax advantages.
- Child and Dependent Tax Credit
If you have children and you have to put them in daycare, it is tax deductible. You don’t have to pay taxes for that. It counts as a business expense.
- Professional Fees
Being an independent contractor, you need a really good accountant and a really good financial advisor. The fees that go into getting them to provide you with their professional services are tax deductible.
- Workers Compensation
Whatever benefits and compensation you would be giving to your members of staff are all tax deductible. Workers’ compensation is not taxable either at the state level or at the federal level.
- Charity Donations
Anything that is 501(c)(3) is tax deductible. Donating to charities would help you reduce and lower your tax bill.
Additionally, one thing you need to think about as well is that you want to set up your business in a way that you can maximize. So, I’d recommend looking into S-corp taxation. Give yourself a salary and then, the rest of the money is for your business. Thus, you will have a less tax burden at the end of the day.
There you have it. The 10 business expenses that can serve as tax deductions for your business. Want to learn more about CRNAs and the practice of CRNAs? Stick around by subscribing to my website as well as to my YouTube channel.