Whether you are a seasoned pro or fresh independent contractor, knowing how to work as a 1099 travel nurse is a crucial step. Becoming an independent travel nurse contractor offers flexibility, freedom, higher pay, and you get to be your own boss! But it also means being responsible for your taxes and managing your finances. Before you start as an independent travel nurse contractor, you must understand the 1099 tax form. Let’s discuss what it means to be a 1099 independent contractor and what are the benefits of working as 1099 travel nurse with SkillGigs.
What is 1099 travel nurse?
1099 travel nurses are independent contractors responsible for calculating and paying their own tax. If you are working as a 1099 travel nurse with a staffing agency, then you will be given a temporary nursing role in the healthcare facility or hospital. They will pay you directly without deducting your taxes from your pay. By the end of the year 1099 travel nurses will receive 1099-NEC form to report their total income, calculate their tax and handle their tax by themselves. These travel nurses are not classified as employees but are considered as independent contractors.
What are the responsibilities of being an independent contractor or 1099 travel nurse?
Some of the responsibilities of 1099 travel nurse or independent travel nurse contractors are:
- 1099 travel nurses are paid directly and there is no automatic tax deduction form their pay. Therefore, they must calculate and pay their own taxes such as federal income tax, state income tax if applicable and self-employed tax.
- As a 1099 travel nurse, they can deduct a variety of business-related expenses which can lower their taxable income and reduce the tax burden. The expenses include transportation expenses, housing, meals, work supplies such as uniforms, medical equipment etc.
- IRS allows travel nurses to pay taxes quarterly throughout the year instead of waiting till the end of the year. It is due four times a year and is known as estimated quarterly tax payments. This quarterly tax is important for 1099 travel nurses because it helps in accurate tax filing, easier financial planning and avoid penalties and interests.
What are the benefits of being a 1099 travel nurse or independent contractor?
Being an independent contractor means you are not a traditional employee, which means no predictable paychecks, employer and company benefits. But choosing to be an independent travel nurse contractor or 1099 has its own advantages such as:
- As a 1099 travel nurse, you can choose your assignments, schedules, and locations.
- You can work and explore new cities and locations.
- You are paid more for your shifts and hours as compared to other nurses.
- As a 1099 travel nurse or an independent travel nurse contractor, you can deduct work-related expenses, which can reduce your taxable income. These work-related expenses include your meals, housing, transportation, and even uniforms.
- Opportunity to build connections in different healthcare settings, resulting in professional growth.
- Full control over your health insurance and retirement savings.
- Gaining diverse experiences while working with different people.
What key factors can affect your income as a 1099 travel nurse or independent travel nurse contractor?
Some of the key factors that can affect the 1099 travel nurse income are as follows:
- Hourly rates and pay structure.
- Location.
- Specializations and certifications.
What are the strategies to maximize your income as a 1099 travel nurse or independent travel nurse contractor?
If you choose to become a 1099 travel nurse, then you are your own boss. You have to calculate your own taxes and manage your finances. Some of the strategies to maximize your income as an independent travel nurse contractor are as follows:
- Choosing high pay assignments
- Utilizing deductions to keep more of your income means keeping an accurate record and receipts.
- Negotiating your contracts.
- Take advantage of overtime and holiday pay to increase your earnings.
- Staying flexible and open to different shifts and locations.
Tips to succeed as 1099 travel nurse
The demand for 1099 independent travel nurses is increasing in the healthcare industry. They work on temporary contracts hired directly by healthcare industries or agencies. To succeed as a 1099 travel nurse, here are some tips to remember:
- Understand 1099 tax responsibilities as you have to pay your own taxes.
- Master budgeting and financial plannings.
- Maximize tax deductions such as meals, equipment’s housing etc.
- Set up your own health insurance and retirement plans.
- Stay on top of licenses and certifications.
- Review your contracts carefully.
- Understand your worth and negotiate like a pro.
- Choose SkillGigs to find the best travel nursing contracts that pay you higher.
What is the difference between W2 and 1099 Travel nurse?
Here are some key differences between W2 travel nurses and 1099 travel nurses.
Employment status:
W2 travel nurses: They are the employees of the healthcare system.
1099 travel nurses: they are self-employed or independent contractors.
Tax responsibilities:
W2 travel nurses: Taxes are already taken out of their pay.
1099 travel nurses: they are responsible for their own taxes.
Salary and compensation:
W2 travel nurses: Less control over their salary and receive an hourly wage or salary but may also receive benefits such as health insurance, paid time off etc.
1099 travel nurses: They have more negotiating power and no benefits which means they have to arrange their own insurance.
Work flexibility:
W2 travel nurses: Less flexibility in choosing their assignments, work schedules and rates.
1099 travel nurses: more flexibility in choosing their assignment, work schedules and pay.
Administrative tasks:
W2 travel nurses: Agency handles payroll, and nurses do not have to worry about invoices or chasing payments.
1099 travel nurses: They are responsible for their invoice and must keep track of their expenses for tax purposes.
Job security:
W2 travel nurses: more consistent work through employer.
1099 travel nurses: work is contract based.
Can travel nurse be a 1099?
Yes, travel nurses can become independent contractors. You can work as a 1099 travel nurse or independent contractor with SkillGigs where we make sure you get high paying contracts.
Conclusion
As an independent contractor you will have the freedom to choose your own assignment, location and pay but working as a 1099 travel nurse you have to take responsibility for your taxes. W2 travel nurses don’t have to worry about their taxes because it is deducted from their pay whereas for 1099 travel nurses, they have to calculate their own taxes and manage their finances. 1099 nurses need to follow some strategies to maximize their pay, such as utilizing deductions to keep more of their income and choosing high-paying contracts. If you are a 1099 travel nurse or independent travel nurse contractor, then download the SkillGigs app and get notified about the trending high-paying jobs. Why wait when you can make more money with SkillGigs as a 1099 travel nurse? Don’t let this opportunity slide away. Earn More with SkillGigs!
