If you’re a smart travel nurse working across the country and pulling in six figures — don’t just focus on how much you make. Focus on how much you keep after navigating 1099 travel nurse taxes and leveraging legal write-offs as an LLC owner.
Most nurses accept W-2 contracts out of habit. But the sharpest ones? They switch to 1099 contracts, set up an LLC, and start writing off nearly everything related to their assignments — legally — to save thousands in taxes every year.
Want to land higher-paying 1099 gigs? Download the SkillGigs app now and get started.
This guide breaks down exactly how you can do the same.
1. Why You Should Choose 1099 Over W-2
As a W-2 nurse, your taxes are withheld, you can’t deduct work-related expenses, and you get little say in how your income is structured.
But when you go 1099, everything changes — in your favor:
You Take Home More of What You Earn
With 1099 contracts, you’re paid gross — meaning no federal, state, Social Security, or Medicare is withheld up front. This gives you complete control over when and how you pay taxes. You also avoid the ceiling of W-2 tax limits and can plan your deductions to reduce your liability.
You Get Access to Real Business Deductions
W-2 nurses lost the ability to deduct unreimbursed job expenses under the Tax Cuts and Jobs Act (IRS Pub 529). But 1099 nurses can deduct all qualifying business expenses using IRS Schedule C.
2. Why You Should Open an LLC for Your 1099 Travel Nurse Taxes
You can technically operate as a sole proprietor, but forming an LLC gives you:
Legal Protection
An LLC protects your personal assets. If there’s a legal issue, your savings, car, or home won’t be on the line.
Tax Optimization
With an LLC, you can:
- Deduct startup and business expenses
- Separate personal and business finances
- Elect S-Corp status later to reduce your self-employment taxes
Professional Presence
Using a company name (like “Jane Doe Nursing LLC”) adds credibility and may make negotiations more streamlined with agencies or clients.
3. How to Reduce Your Taxable Income: The Big Deduction Strategy for Travel Nurses
Here’s where the real money is saved. As a 1099 nurse with an LLC, you can legally deduct any ordinary and necessary expenses you incur for work under IRS Publication 535.
Below is a master list of everything travel nurses can write off:
Housing & Lodging
- Short-term rentals, Airbnbs, hotels during assignments
- Utilities, cleaning fees, or furnished apartment costs
- Dual lodging costs (if maintaining a tax home)
Transportation
- Flights, buses, or trains to assignments
- Car rentals and associated fuel
- Tolls, parking, and rideshare used for work
- Mileage if using your personal car for work travel (IRS rate: 67 cents/mile for 2024)
Vehicle Expenses (if not using mileage method)
- Lease payments or depreciation
- Fuel
- Insurance
- Repairs and maintenance
- Car washes (if related to business image)
Meals
- 50% of the cost of meals during work-related travel
- 100% for meals with recruiters or work-related networking
- Per diem allowance based on federal GSA rates
Licensing & Education
- Nursing license renewals
- Additional state licenses
- Continuing education (CEUs)
- Certification exams (ACLS, BLS, etc.)
Medical Gear & Supplies
- Scrubs, compression socks, shoes
- Stethoscopes, BP cuffs, medical scissors
- PPE and uniforms
- Laundry for work clothes
Tech & Office Equipment
- Laptop, tablet, smartphone used for charting, communication, or scheduling
- Headphones, chargers, external drives
- Printer, ink, paper
- Apps or platforms used for scheduling and payroll
Home Office
- Proportional rent, utilities, and internet for a dedicated space used for charting, communication, or admin work
- Furniture like desk, chair, monitor
Phone & Internet
- Business-use portion of monthly phone and internet bills
- Entire second line or device used only for work
Health Insurance
- If you’re self-employed, you can deduct 100% of your premiums (IRS Form 1040 adjustment)
- Also deductible: dental, vision, HSA contributions
Business Services
- Tax prep and bookkeeping software (e.g., QuickBooks, TurboTax)
- LegalZoom or similar LLC setup services
- Business cards, web hosting, domain names
- Virtual assistants or schedulers
Agency & Placement Costs
- Any recruiter or agency fees you cover
- Background checks, fingerprinting, drug screening
Travel Nurse-Specific
- Referral bonuses paid to others
- Storage unit fees if you’re on the road
- Luggage or bags used during frequent relocation
- Temporary mailbox or virtual address services
Retirement Contributions
- SEP IRA: Up to 25% of net earnings (max $69,000 for 2024)
- Solo 401(k): Up to $69,000 (combined employer + employee contribution)
Real Example: Nurse Jess Saves $24,300
Let’s say Jess earns $190,000 in gross pay as a 1099 travel nurse.
She forms Jess RN LLC, keeps good records, and deducts:
Category Amount Deducted
Housing (3 contracts) $18,000
Travel & transport $7,200
Phone, laptop, office $3,000
Licenses & CEUs $1,400
Health Insurance $6,000
Meals (per diem) $3,800
Car (lease + gas) $5,200
Retirement (Solo 401k) $24,000
Total Deductions $68,600
Taxable Income = $190,000 – $68,600 = $121,400
Compared to a W-2 nurse with the same income and almost no deductions, Jess saves over $20,000 in taxes — legally.
Final Thoughts
Travel nursing already pays well — but going 1099, forming an LLC, and leveraging strategic tax deductions turns your income into long-term wealth. You gain control, pay yourself smarter, and stop leaving money on the table. Ready to earn what you’re worth? Set up your LLC, speak to a tax pro who knows 1099 travel nurse taxes, and track every deductible expense. PS — open a business bank account to separate your finances and simplify tax time. Want the highest-paying 1099 gigs? Download the SkillGigs app now and get matched in minutes.
