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Twice a month, get clear, smart tips to help you keep more money, build wealth, and make taxes easier for 1099 CRNAs.
Welcome to Money Moves for CRNAs — the podcast created specifically for 1099 CRNAs who want clarity, confidence, and control over their money.
This podcast is for educational purposes only and is not personalized tax or financial advice.
Here’s your host, Randy Larkin, with Atlanta Tax Planner.
Hi there, this is Randy Larkin.
Here is a situation that can surprise a 1099 CRNA.
Your new assignment is only about 4 miles from your old one. Your commute from home feels almost the same. You are still working through the same agency. But now the facility is across the river, in another state.
To you, it may feel like a small change. To the tax system, it may be a different map.
Today, let’s use a simple Louisville-area example to show how a small location change can create bigger tax and business questions.
Sometimes, the issue is not across the country. Sometimes, it is just across the river.
Let’s use a general teaching example.
This is not a discussion of one person’s private tax file.
A CRNA lives in Louisville. She works through an agency. For a while, her assignment is in Louisville, Kentucky. Then the agency places her at a facility in Clarksville, Indiana.
Clarksville is still in the Louisville metro area. The new facility may be only about 4 miles from the old work location. Her commute from home may feel almost the same. The agency may be the same. The work may still feel local.
But from a tax perspective, the work moved from Kentucky to Indiana. And Clarksville is in Clark County.
That creates a different question. Not just “Where does the CRNA live?” but “Where was the work actually performed?”
For a 1099 CRNA, that question can matter.
The first issue is tax location.
Where the work is performed can affect state tax questions, local tax questions, county tax questions, estimated tax payments, payroll setup, and year-end planning.
This is why work location records matter.
If all you know is which agency paid you, that may not be enough. You may also need to know which facility you worked at, which city it was in, which state it was in, and whether that location changed during the year.
A short drive does not always mean a simple tax answer. Four miles can be enough to cross a state line. And crossing a state line can be enough to raise new questions.
If nobody catches it early, the CRNA may be paying the wrong place, missing the right place, or overlooking another compliance issue.
Now, someone may hear Kentucky and Indiana and think, “Don’t those states have reciprocity?”
Yes, they do.
Reciprocity is an agreement between two states. In plain English, it may keep a worker from paying income tax to both states on the same income.
So if you live in one state and work in the other, reciprocity may help decide which state taxes the income.
But it does not solve everything. It may not answer local tax questions. It may not answer county tax questions. It may not fix estimated payments or payroll. And it does not replace good records.
So the better question is not only, “Is there reciprocity?” The better question is, “What tax issues are connected to this work location?”
The second issue is not income tax. It is business registration.
Many 1099 CRNAs work through an LLC or S-corp.
If the company was formed in one state, but the CRNA starts working in another state, someone should ask whether the company needs to register there.
This is where “foreign LLC” can confuse people. Foreign does not mean overseas. It usually means the LLC was formed in one state, but may now be doing business in another state.
So if a CRNA’s company was formed in Kentucky, but the work shifts into Indiana, there may be an Indiana registration question.
That does not mean every situation has the same answer. But it does mean the question should be asked.
Same agency. Similar commute from home. Only about 4 miles away.
But now there may be two compliance questions: What tax rules apply to the new work location? And does the business need to register in the new state?
Why this matters during the year? These issues are easy to miss.
The CRNA is working. The agency is paying. The drive feels normal.
But the tax setup may need to change when the assignment changes.
Where is the facility? What city, county, and state is it in? Do payroll or estimated taxes need to change? Does the LLC or S-corp need to register in the new state?
These are not year-end questions. They are tax-year questions. The time to ask them is when the work location changes.
So here is the takeaway.
For a 1099 CRNA, a small location change can create bigger tax and business questions.
Same agency. Similar commute. Only about 4 miles away. But one bridge can change the tax map.
Your next step is simple.
Download the free 1099 CRNA Tax Readiness Review through the link in the description.
Use it as a self-assessment. If you are confident, check the box. If you are not sure, leave it unchecked. Then use those unchecked boxes as your action list.
Because for a 1099 CRNA, the issue is not always the hourly rate. Sometimes, the issue is the map.
Thanks for listening to Money Moves for CRNAs.
New episodes drop twice a month.
See you soon.