The Main Tax Deductions Every 1099 Healthcare Professional Should Know

Okay. So, hi, I am CoryAnn Kleinhaus and I just want to welcome you to our presentation. It the main tax deductions every 1099 healthc care professional should know about.

before we dive in, I wanted to take a minute to thank Jason Weber for being here and also introduce you guys to him. So, Jason is a certified public accountant and he works at Pinnacle Tax Solutions. And at the end, I'm going to

send out all of his information so you guys will have it in case you want to contact him and have specific questions. Um, but I'm really glad that he's here but I'm really glad that he's here because of the balance that he brings.

So, a couple years ago, I decided I wanted to search and try to find the best CPA that I could find. And I wanted someone who prioritized compliance and audit defensibility, which I think

is really important, but also who really understood tax strategy. And it seems like those qualities would not be hard to find in a CPA and have them both be

balanced together, but it actually was. And so after speaking to about 10 CPAs, I finally got in touch with Jason and kind of asked him a bunch of questions

and I really felt like he's struck the balance of audit compliability, but also really helping you navigate how to be tax savvy. And I also appreciate he

communicates very clearly. so I'm excited to have him here with us today. And for myself, I I'm why I care about this topic so much. So I am a nurse

nest. I have been doing 1099 work for about I'm in my eighth year, I think, of doing 1099 work. And over time, I just realized that contractors that don't we

don't overpay because we're careless. We're very smart medical professionals. we overpay because we don't fully understand how to track our our deductions and then also how to run a

1099 business. And so my husband and I, he's a software engineer. I really wanted an app that was meant just for medical professionals. And it was really

hard to find one that met all of our needs. And so we built a company called 1099 Pro. And our app is called 1099 Hub. And our two main goals are really

simple. So, first of all, I really want to educate 1099 medical professionals so they can legally and confidently maximize their tax deductions. My philosophy is that you guys made this

money and you deserve to keep the most that you can possibly keep. there's two more people I'm going to admit really quick. Okay. And then, the second thing that my husband and I really care about

is that we really want to make running your business very easy. So, you shouldn't have to deal with complicated software. We wanted to make an app that was really easy to use. and we wanted to make something that was

valuable because your time is really valuable and running a business should be easy, especially around tax time. So, this is the first webinar we we've hosted. We've only had the app out for

about six months and so this is our first webinar and we're I'm really excited about it. and I'm really glad to have Jason here. We are constantly trying to bring new resources to our 1099 hub users and sometimes

we open them up to just the general public and so this is one of those resources that I just really wanted to share with all 1099 medical professionals and so we do plan to host more webinars in the future. Today's

topic we're it's kind of a I would say it's a general overview because Jason and I were talking and I don't really know all of you and so I don't know what your knowledge is about tax strategy.

So, this is a general overview. We're just going to kind of lay the foundation. Like I said, there will be time for questions after and we do plan to host future webinars for 1099Hub.

and we'll be able to go into more specific topics at that time. So, anyways, with that, let us get started here. So,

right, let me see. There we go. So, why do most clinicians overpay their taxes? So, first of all, I I mean, the most basic thing is poor tracking. So, you're

relying on your memory and you're not keeping receipts. Secondly is what I call the percentage gap. And Jason and I have talked about this a couple times. So, we find that a lot of people or he

finds a lot of people, they either are too scared and they don't deduct a lot because they really want to be IRS compliant or the complete opposite. They deduct too much because they don't understand that we have percentage-based

deductions. Now the third reason that people tend to over overpay is what I call the identity crisis. So you maybe you were

previously a W2 employee, you understand how taxes work for W2, but now you have a business and so running a business is completely different. And then finally

is just the calendar mistake where you own a business, you need to keep track of things on a regular basis. you just before when you were a W2 employee, you could wait until you got, you know, your

W2 slips and then sit down and figure out your taxes. Well, now you're a business owner and so you need to make sure that you're staying on top of it throughout the years, throughout the whole year so that you're not trying to crunch everything and you make mistakes

um around tax season. So, it really just around tax season. So, it really just comes from the to you just really need a shift to strategic pan planning, expense control, and making sure that

you're documenting well. Sorry, I'm trying to admit people as they come in too. so the fundamental shift is that you are now a business. So taxes are the tax formula now for you is gross

income minus legitimate expenses is your taxable income. And unlike when you were a W2 employee where the taxes were withheld automatically, you are now

responsible for your taxes. So self-employment tax plus federal and state income tax. However, because of this, there's a huge opportunity. The IRS allows you to deduct the cost of

doing business. And so every legitimate expense that you track is a direct reduction in your taxable income, which is really great.

However, so this is something both Jason and I are really on the same page with is that you need to be make sure that you're audit proof. And so documentation is one of the most important things that

you can do for your business. uh the proof of the burden of the proof the proof of the burden of the proof falls on you. It doesn't fall on your CPA. And if you're audited, the IRS can

disallow any expense that isn't properly documented. And what is not sufficient documentation is bank or credit card statements alone. So in building this app that my husband and I made, 1099

Hub, I have spoken to over a thousand different medical professionals, mostly nurse and neesthetists. just in building the app and going to conferences and talking to our users, I

cannot tell you how many people think that having a credit card statement or bank statement is enough for your if you get audited for your taxes. And it's

not. And I've even had people tell me, "Well, my CPA is okay with it. I just give him my credit card and bank statement and he thinks that's fine." And it is fine for filing your taxes,

but it's not fine if you are ever audited by the IRS. And that's because proper documentation really needs to include the amount that you paid, the date you paid it, the pay or like the

business that you paid, and the business purpose. And so the business purpose should be about, you know, here's an example. Let's say you go out to dinner

and you're trying to network or you're doing strategic planning, you're meeting with another colleague. It can be a tax deduction, but what you have to include is, like I said, the amount you paid, the date, the

restaurant that you ate at, and then the business purpose. And so, this needs to include who you ate with and what you did there. So, you like, let's say an example is you went out with Bob Simon

and you talked about tax strategy or whatever it is, you need to just record all that and have that recorded if you're ever audited. And then also the other reason why bank statement and

credit card statements don't work is because it's not an itemized receipt. So it doesn't show that when you went out to eat you ordered the chicken or whatever it is. And same thing when you

go and fill up your gas tank. If you're doing actual expenses for car deductions, you need to show that you you need to show that when you were filling up your gas, you weren't also,

you know, checking out and getting Cheetos at the checkout. They want to know that all of your expenses are legitimate expenses for your business. So, I think Jason had a couple things

he wanted to say here as well.

>> Yeah, I'll just mention that. Excuse me. Uh your audit risk is hopefully pretty your audit risk is hopefully pretty low. over the last 15 years, we've seen very limited audits, but being in

your guys's income level, you're a little bit more susceptible to being audited. And once you hit about 400,000, that percentage or likelihood of being audited increases a little bit. the

IRS really said they're going to start looking at those income ranges more. But when COVID hit, that kind of took a backseat a little bit because they're so

understaffed. But now that things are ramping back up, that 4 to $500,000 wage group is kind of in their crosshairs. So, we've just been advising people to

document more so than they have in the past.

>> Great. Thank you. Okay. So, now if you look at the different types of 1099 work that you do, and I'm specifically I'm a nurse nest, I'm going to be kind of if I say

CRNA, just know it can apply if you're a different kind of medical professional. But, a lot of times in, the CRA world, you know, there's either full-time 1099 work or there's part-time

1099 work. So, you do a W2 job and then you do 1099 contracting as well. So, this is the last general slide and then we're going to get into more of the specific tax categories just to let you

guys know where we're going. So, if you're part-time, you have partial duct deductions that are allowed. health insurance is usually not deductible because you can probably get that through your W2 job. And then mileage

restriction is restricted to your 1099 sites only. You cannot deduct it going from your home office to your W2 employee. Obviously, if you're full-time, you have larger percentage of

deductions. sometimes health insurance is tax deductible. If you're so if it's not qualified for on your hus your spouse's plan, then you can tax

deduct it. And then there's more retirement options. So, typically with part-time 109 work, you can give to a SE IRA, but with a with full-time, you can do more things like a solo 401k. And

then you're also a candidate for escort planning. And so the biggest thing though is for both whether or not you do part-time or full-time. a

couple things you're going to hear me say over and over again that if you are reimbursed by your 1099 job or by your W2 job, you cannot tax deduct that. That would be double dipping. and then

secondly is just that you really have to keep track of what is business use and what is personal use and you can only deduct the business portion of it. And then Jason is going to jump in here some

more practical tips right now.

>> Yeah, I mean I think a lot of you have probably been told an escort may be the the best decision for you and I think it's important for everyone individually to work with a CPA or work with somebody

to run that analysis for yourself. for example, being in the medical field, your specified service trader business. So, you get phased out of the

qualified business income deduction if your income's around 200,000 single or 400,000 married filing joint. So, if you're above those thresholds, an

escorp likely makes really good sense for you because you're not losing out on that qualified business income deduction. However, if you switch to an escorp, you have to have salary to

offset some of your income. So, there's less QBI there. So, there's always a sweet spot where we have to figure out if the self-employment taxes the payroll taxes that we're saving by

switching to an escorp makes sense for your individual situation. So, we can't just blanketly say that yes, everyone should be doing an escort because everyone's in a little bit different situation and if they have spouses that

make money, that also could factor into to that. So, um, but yeah, as Courtney was saying, but yeah, as Courtney was saying, you know, we still need to keep accurate records and categorizations of expenses.

The ESCORP, if you go that route, just um you have to do balance sheet you have to do balance sheet reporting for credit card payables and payroll taxes payable. And then

you also have to track your bases in the escorp. So, there's a little bit more compliance behind that, but the structure from keeping track of your records is typically the same. Yeah, great. Thank you. Okay, so now we're

going to kind of get into some general categories. So the first is what I call operational overhead. So a lot of things uh fall into operational overhead. So fall into operational overhead. So phone bill, internet supplies, laptops,

iPad, office equipment, and just generally, you know, if you're part-time, it's probably the allocation is probably 10 to 50%. and it must be tied strictly to your 1099 work. If

you're full-time, oftentimes you can allocate more like 80 to 100% just depending on everything. but it it really either way the big the golden rule is that unless it's 100% usees

truly for business, you have to estimate the percentage. and then the other thing is that you really need to have a good system to document these things with. So, the system must be defensible

in an audit like I've said over and over again. Uh, and I'm just going to show you guys and I'm just going to show you guys a couple quick screenshots of the app. Um, so this app, one thing I we've heard

so this app, one thing I we've heard really great feedback on is it was made for medical professionals. So it's not a normal business app where it's really general categories. And so this is just an example of our expense screen. And

just so you guys know, everything all the numbers and everything that I'm going to show you guys is made up. So if it looks like it's not that much input, it's just cuz I threw some stuff together for the presentation. so

the expense tab is down here. You can see that for this month, this is all these are all the expenses and then it's really slick. You just click add expense. If you're going out to eat or

you just were at the gas station, you want to quick take a quick photo or you can upload a file and then of your receipt so it's there. And then and all these are exportable whenever you

need them. And you can if you're ever audited, it's really easy. that you can export all of them at once and so it just makes everything very slick. And then you can select the category which

I'll go into in a second. Merchant obviously is the business you want to put the transaction amount and then a comment. So this is where if you're out to eat or something like that and you want to say okay I was strategizing

business with my CPA and then you can put that in the comments and then that's truly what keeps you audit proof is just having that information. Now, what makes 1099 Hub unique compared to other

business tracking apps that are out there is that it's for medical professionals. So, this is really important during tax time because you have unique needs and unique deductions. So, for instance, not that many other

professions can deduct professional dues, license and credentiing, continuing education, travel, lodging, all these things are really specific to healthcare workers. And so that's

important because if you use general categories or if you're generalizing or if you're doing it yourself, you just really need to make sure that it's very cleanly categorized for your CPA. And so

um otherwise you're going to be spending otherwise you're going to be spending a lot of time at tax time to categorize it or if your CPA if you have an hourly chart like someone that charges you hourly, you're going to be paying them money to categorize it for

yourself. So if you So it's just really nice to be able to click and have something that is just meant for you. so that's just a little to show you how easy it is to track those expenses. Now

uh one of the things that commonly gets one of the things that commonly gets asked by our 1099 hub users is vehicle strategy. And so I'm just going to start by saying this again. W2 commuting is

not deductible. However, just start with the question. Do you drive for work? And if you do, so some examples would be driving to your 1099 sites, driving to your locom ass assignments, doing any

supply runs, any sort of business meeting that you're going to or if you're going to a business lunch, anything like that, that is a tax deductible trip. And so if that's

true, you either going to have the standard mileage method or the actual expense method. So the standard mileage method, I thought this was really interesting. Jason said about 80% of his

clients use the standard mileage method. It is common because it's easy to do. So all you have to do the IRS sets a rate. Correct me if I'm wrong, Jason,

but I think for 2026 the rate is 72 cents per mile. I think that's it.

>> That seems reasonable. I'm still living in 2025, which I know was 70% or

>> 70 cents. Yeah. Yeah. So it's gone up just slightly. So you can deduct. So, it's per mile and it's really easy. All you have to do is have an accurate mileage log. Every date, purpose, and

mile just logged. It's helpful as well. I tell people to have to kind of record your odometer. Even if you don't technically need it for this method, it's helpful to just to have an odometer

reading. So, you can show if you're ever audited. No, I have a clear separation of business purpose for my business. And then this is my personal use. You can just kind of show them the numbers a

little bit easier. Now, some people want to use the actual expense method. And the biggest thing is that it's a percentage a percentage of all these

things. So, it is a percentage of your fuel, repair, insurance, registration, loans, interest, and depreciation. And the biggest thing and the biggest mistake that I have seen people make is

that they don't keep mileage logs very well. and so with this, you not only have to keep every single receipt, like I said, you can't rely on credit

card and bank statements because it's not itemized receipts as we've said before. So, you have to keep all your receipts. On top of that, you need to have a very, very detailed mileage log. So, this includes a lot of people miss

recording. You need to record your odometer readings either at the beginning of the year or the end of the year for this method and keep track of that. And then you need to record every single trip because your deduction is a

percentage of your use. And for this method, you're supposed to show at least 50% business use. So, I know there are a lot of questions both that people submitted and then just in general that

people have around this. So, we're going to take a little bit of time here. So, one of the questions someone submitted is, are there ways and is it worth it to lease your car to your business that you own? So, Jason, do you want to jump in

here with that? Yeah, I'll start off by saying this is a big topic and there's a lot of specific things we could talk about. So, I'll try to answer the questions as they come up, but we can

always dive into this deeper at another time. So, you are able to lease your vehicle and deduct those payments along with the other actual expenses if that's

what you choose to do. there are some lease, you know, auto luxury auto type things where if you're leasing a very expensive vehicle, there might be some

limitations, but like everything, if it's 30% business use, you can only deduct 30% of that lease.

>> Okay?

>> So, just because you're leasing it doesn't mean you can do 100% of the lease.

>> Perfect. Yeah. So, you always have to keep a record. Okay. Another question was, can you buy a vehicle? So, you're buying a business vehicle and and there is a wait limit and all that stuff

for that and then someone asked, can you take it out of business the next year or two and then buy another vehicle? So, this is a question from a user.

>> Yeah, in short, no, you can't do that. Um, the IRS used to allow a like kind the IRS used to allow a like kind exchange for vehicles that would let you defer any tax on changing out

vehicles, but essentially if you buy a vehicle and take depreciation on it and actual expenses, if you remove that vehicle from your business either to

yourself personally or in a trade into the dealer, you pay tax on the fair market value of that just like you were selling it. So depending on how much depreciation you've taken on it and what

the value of the vehicle is, it would impact the tax liability with that transaction. The longer you hold the vehicle, the less depreciation recapture there is and less impact on selling it.

>> Okay.

>> So if you're changing vehicles every year or two, then it's not really tax efficient.

>> Okay, sounds good. Do you want to jump into some of the other key considerations? Um yeah, what are those? yeah, what are those?

>> just the like depreciation and how it works. how you can take the large depreciation the first year. some people I think don't quite understand the recapture part. So maybe you can just briefly talk about that again.

>> So I don't have all the depreciation rules in front of me on every vehicle, but basically a 6,000lb vehicle and above that's not really a passenger vehicle can take accelerated

depreciation amounts. And I always like to tell people that depreciation is basically a timing issue. So if you take depreciation, you get the deduction now,

um, but likely pay tax and have but likely pay tax and have depreciation or capture when you sell that. So if you were to buy a 40 or $50,000 vehicle, and you took all depreciation year one, sold it in year

five, the IRS tables are kind of set up where if you just took the standard mileage rate, you're likely getting the same deduction over time. Um, and the way recapture works is if

and the way recapture works is if you buy a $40,000 vehicle fully or let's say you take 40,000 purchase price, you depreciate 30 and sell it for 25. You

got to take your basis, which is the 40 less the 30 depreciated of 10,000. And if you sold it for 25, you have a $15,000 gain. and the basis portion that

10,000 is taxed at ordinary tax rates. The other 5,000s you get the long-term capital gain rate. So part of your gain is just tax at higher rates if there's

depreciation recapture.

>> Yeah.

>> The more expensive the vehicle kind of the more recapture there is.

>> Yeah. Obviously everyone has their own unique situation, but I always assume that if you had an escorp or something that you'd want to do the actual expense method. So, it was interesting in talking to you that it really that the

IRS actually kind of structures it. So, in some cases or in a lot of cases, you might break even with the standard mileage. so I thought that was interesting. And then you

>> I also like to tell people, sorry for jumping in, but

>> Oh, no. Jump in please.

>> It is a timing issue, but if you're in a higher tax bracket this year than you're going to be in three years, you know, it would be beneficial to take that depreciation now and have the recapture

at a lower rate later. I also do recommend that if you're buying the vehicle in your escorp, it should be purchased in the the business name and registered there. And at a minimum, it

has to have 50% business use, but I always recommend at least 80. you're never going to get 100%. And you really should only be depreciating the the

business use percentage. So, a $100,000 vehicle with 50% business use, you know, we're probably taking a $50,000 depreciation amount. Yeah, that's a really good point. And

then you if you purchase it in your business name, you also have to have different does that make your insurance go up then too? Sometimes

>> typically you're on Yeah. like a corporate insurance policy which then you know depending on rates in your area could be substantially higher.

>> Yeah. And then can you also touch base on if you decide to do the actual expense method, can you jump back and forth after that or do you have to stick with one or the other? So once you do

actual intake depreciation, you are stuck with that method for the remainder life of that vehicle. If you do mileage for the first three years, you can start

to appreciate that later on and take actual based on the fair market value of that vehicle at the time. So you are able to switch if you start with the the standard mileage rate.

>> Okay, sounds good. and then I'm just going to show you guys. So once again, the 1099 hub app made for medical professionals. We try to make it

easy for you guys. So first I'm going to show you the manual tracking. So you just add a trip here and then if it's not related to a shift, you can say no shift. You just put in the start location and location. You hit compute

and it will auto compute the mileage and then you just say the business purpose. Now people primarily who our users of the app use this a lot of times if you know they have to make an extra run,

they're going to a business meeting, that kind of thing. obviously it's manual, so it's more work. We also have kind of an auto log, which is really, really nice. So, you here at the bottom,

you'll see there's a shifts tab, and so if you take just like a couple minutes every month and you put in all of your shifts for the month, it will autolog your miles going to from your home

office to your work. So, you can see here's an example. So, I put in a shift there and it auto logged my home office, the start time of my shift, and then the

distance I drove and where I went. So, this is what you need to be audit proof. And then it does the return trip home. So, once you put in your shifts, it's kind of like a set and forget for the

most part, except for these other, you know, business meetings or other things you might go to. It just autolocks your um shifts or your trips. And then you shifts or your trips. And then you can see at the top here, I just for this

example, I just put in one trip or one shift. And so it's going to do to work and back from work. And the nice thing is that it will kind of give you, so this is based on the 2026 rate. It'll

kind of show you what your potential savings are with the mileage tracking. So that's kind of a cool feature of the app that's really unique to our app. Now, another great deduction is your

home office. So we're going to start to cover that. So, the home office, there's two methods. So, first of all, let's say this is your home office here. You have to calculate the square

footage. And so, you can either do the simplified method, which is just $5 per square foot, and there's no expense tracking. It's really simple. Now, the actual method, which I guess I find

that, and maybe it's different for you, Jason, but a lot of CRNAs I know do the actual expense method. I personally do for my home office and that's so it's where you take your home office

square footage and you divide it by the whole square footage of your house. So, mine I don't have a huge office as you can see, but it's 7% of my home, which

doesn't sound like a lot, but when you can start to add in the deductions such as mortgage interest, a mortgage interest, utilities, insurance, repairs, uh, cleaning fees, they they all add up

cleaning fees, they they all add up very quickly. And a higher interest rate for your mortgage actually tends to favor the actual method. and so, but there's a couple considerations. So it

does require depreciation in the office portion and then that re depreciation is recaptured upon sale. And whatever method you choose to use,

you just have to know that the space must be exclusively used for business. And one other little caveat is let's say you you you can't have another place of

primary doing your business. So, for instance, if you are a solo 1099 provider for a facility and they give you an office at the facility, you no longer have a home office. That's your

main office. So, that's kind of a little caveat, too, that you have to pay attention to, but I I think most of us aren't getting our own office at a hospital. So, I I think most of us qualify for a home office. do you

I I do have a couple questions for you, Jason, but was there anything there that you wanted to add in first? Yeah, I'll just start by saying like when we do this analysis, the first place we

usually look is what your mortgage interest is. You know, if you're paying $10,000 a year in mortgage interest, the benefit of doing actual versus simplified is probably not that great.

But if you have, you know, as a high earnner a nice house, 30 $40,000 in mortgage interest, almost all the time the actual method is going to get you a better benefit. then it's up to you if

you're able to track the expenses. and if you're doing the actual method, we want to be even more certain than that it is exclusive use. but what I

tend to see is people will have two bedrooms they're trying to claim as an office plus part of the garage for, you know, the pair of shoes they're storing out there. So, you just want to

be a little bit more careful if you're doing the actual expenses to make sure you have proper documentation to substantiate that. but likely you're going to get more of a more tax benefit.

>> It's a great point. so a couple quick questions that people asked were let's say you have repairs that are affecting the whole structure. So these are I'm assuming doing actual expenses.

Can you So if it's the roof or you know you are resilling your driveway and you need to you know you need a parking space for your home office. So, can

you fully deduct those? Because, you know, you can't just do part of your roof and you can't just do part of your driveway. Like, you can replace just one window in your office. So, how do how does that work?

>> Yeah. So, if it's a direct expense, let's just say you're going to replace the carpet in your office, that would be a 100% deduction. But, if it's a roof to the main home, it's an indirect expense.

So then you're limited to taking 8% of your your cost to replace that roof if that's your office percent usage.

>> Okay.

>> But any kind of repairs to the house, driveway, landscaping, all of those would be qualified expenses.

>> Okay.

>> Limited based on percentage.

>> And then someone else was asking, can you deduct more mortgage principal or taxes? I'm guessing that's like, you know, land taxes or home owner tax, you know, taxes that you're paying. So the the principal payments on your

mortgage are not deductible, just the interest. And you can certainly deduct the real estate taxes.

>> Okay, sounds good. And then can you cover the Augusta rule? I think there's a lot of people that are curious about it and so yeah, maybe you can just cover some of that.

Yeah, we're starting to hear about this more and more with social media and Tik Tok videos. And I'll start off by saying it is a legitimate deduction if you have the proper documentation,

rental agreements, rental research. basically what it says is that you can rent out your home for business uses for 14 days of year a year and not pay tax

on it. But what I see a lot of people trying to do, you know, a sole CRNA is going to have a board meeting at their house with

their husband and four kids who are on the board and they're going to deduct $2,000 a day for rent. The IRS looks at that pretty closely and will say, "Well,

if you if that was a legitimate business expense, business reason to rent it out, could you have gone four blocks away and rented out a room for $400?" And if

that's the case, that fair market rent, that $400 is what they're going to allow you to deduct, not the full 2,000.

>> So, can can you do this? Can you do the August rule on top of having a home office? Yes, I believe so. I don't think there's any exclusions for that. as long as

it's a business use, like if you're going to have a training session or something that is going to help you generate revenue or, you know, just has to has a legitimate business

purpose is what I always tell people. And, you know, I

>> What about like a a holiday party that you're inviting, you know, you're networking and you're inviting different

>> Sure. So that would be another Okay.

>> If you have two or three events a year like that and it's $400 to rent your house, $500, a thousand, if it's within reason, I don't think you have a concern. But if year after year you're

taking 14 days at $3,000, you know, that's just not reasonable. That's just going to draw some attention to you.

>> That's great. I mean, that's not great. This I'm I'm learning about the Augusta rule. I didn't know a ton about it, so it's really helpful. We don't see a lot of people using it just because they can't justify it.

>> But if you're a social media influencer and you have a really nice house and you're going to take pictures there or shoot videos, you know, you could substantiate that. But if it's

>> I'm just going to have some people over to to read tax law, you know, can you do that somewhere else?

>> So,

>> that's just something you'll want to talk to your CPA about, whoever you're working with, and come up with a a good plan to substantiate that. Okay, great. That's great tips. All right, so now

professional maintenance and growth. This is another big category and fortunately it's pretty easy for us as medical professionals to qualify for these things. so any continuing

education is typically reimburseable. However, I will say you must maintain so the IRS says it must be to maintain or improve current professional skills

or be required by law. most of it as it is. But if it's an educational, so if it's for education for qualing for qualifying someone for a new profession

such as if you want to go to law school, it is not deductible. So it has to be for your current profession. And so it's typically deductible and same thing with any license or CRNA

professional dues, BLS, ACLS PALS, any state lensure that is usually fully deductible. I will say for both of these continuing education and any licenses if

it is covered by your W2 job you cannot double dip. So and especially with CU conferences. So you have to be careful

and you really want to keep track of receipts if you have a W2 job that reimbures you some of your expense. So for instance at my W2 job if you're full-time I think it's like either

3,000 or 3500 that you get reimbursed for your educational conferences. Now, if your trip is $6,000, you need to be able to separate and say, "Okay, here's the receipts. I'm gonna

have my work is going to reimburse me for the cost of the conference and the hotel room." And you separate those receipts. And then whatever is left over can be reimbursed by your business, but you can't double dip for both. And then

malpractice insurance, it's likely covered if you're a W2 employee paid by your employer, but obviously if you have a private policy, it's fully deductible if you're doing 1099 work. So, and then

what's also cool about 1099 Hub, like I say over and over again, this is made for medical professionals. And one of the things that I hate doing, I at one point I was credentiing at four different facilities, like felt like all

the time. And so, I felt like I was always trying to keep track of all my different credentiing documents and I did have them in a nice folder, but every single time I swear there was a

document that was expired and then I'd have to go hunt for it. So we have a credentiing hub on our app and so you can see I just put in some madeup information. So this is all my information here. You can upload state

lensure and then any credentiing documents and we did have a a user reach out to us. So they had uploaded their driver's license and they didn't know that it was expiring but you get notifications when things are going to

expire. So they wrote me a message and they were like I didn't know my driver's license was expiring this month but your your app sent me a notification. So, it's just a cool little add-on feature. Um, we have a number of features that

we have a number of features that I'm not going to talk about here, but they are specific for medical professionals on the app. So, they're just kind of nice things, bonus things. Uh, and then now talking about travel and then now talking about travel and dining.

So, we've kind of talked about travel a little bit with the CUS, but your flight and lodging cost are typically deductible for your business. However, obviously, if you're getting reimbursed,

so if you have a stipend, then they're not deductible. And then if your trip is extended for any reason, only the business portion is deductible and family member travel expenses are not

deductible. So what I recommend people do and what I personally do is if you are going to an education conference and you decide to bring your family,

purchase your ticket separate. Don't have your ticket and your three other family member tickets on the same receipt. And same thing when you go out to eat. I know it said you don't want to

bother the waiter, but just ask for your meal to be separate from your families. You don't want if you ever get audited, you don't want them to scrutinize your trip even more because they see, you

know, meals for all your family members. So, just separate those things out very clearly. And then, once again, we've already said that it's not deductible for whatever is reimbured by your W2

job. Meals are typically 50% deductible and they must have a business purpose that is documented as we have discussed or

they should occur during business travel. a typo well a mistake that some people make is you can't deduct your everyday lunch just because you're working. I am just going to share that

my first year as a tending medical professional eight years ago I did this a couple times because I didn't know. Um, and so it's just a it's a common and so it's just a it's a common mistake that I've seen as I've talked to

people. So, just a little tidbit there. And then, Jason, there are a couple questions. So, are meals for CU conferences 100%

deductible? So, if you're traveling for business, not just like traveling for a locom assignment, but like traveling for a conference or something, is that a different deduction or is it still just 50% for meals?

>> Still 50%. The IRS has some meals that are 100% deductible, but it's specific industries and like you have to make it available to all your employees. So, typically every meal will be 50%

deductible.

>> Okay. And then alcohol is not deductible. Correct.

>> Correct.

>> Okay. And then for trips that are So, another question is for trips that are a certain number of days, do you have to conduct business? So, let me try to Oh, okay. So, if you're going on a a trip

and you're going to extend the trip, is are there a certain number of percentage of the business trip that has to be I think is what they're asking. So, is it different being in the US

versus international for how much of it has to be a business trip versus, you know, just an add-on for of days? I'm not real up to date on the international rules, but I do believe there's some

caveat where if the trip is 80% business for international, you can deduct 100% of like your flight, but other stuff is still limited to to business use.

>> As far as a US goes, it would be based on the percentage of business. So, if you're going to Florida for 5 days and it's a three-day conference, your

flight would be 100% deductible because that was a business purpose. But two out of the five days of your hotel stay would be personal.

>> So what if it's like what if it's you know if it's a three-day conference but it takes a day to travel there and a travel back would that all be reimburseable then because you're traveling those days for business

>> within reason I I always say yes. So if you fly down there and you get there at 8:00 at night and that's a travel day. You know if you go out to dinner that's a business meal. I don't know what

else you would be doing, but within reason, I always tell people just substantiate the business purpose as much as they can.

>> but really what we're looking at is the hotel and the entertainment stuff. And if you're doing that personally, that should not be deducted.

>> Now, what if so let's say you go down for a CU conference, but it's a place that you might want to have a locom contract. And so you go to the conference and then you stay for a day or two and you are actually you know

going out and having business meetings with like a a local hospital or you're trying to see if it's like a good fit for so I mean that's considered business travel then too. So you could continue

to deduct those.

>> Absolutely. If there's a a business purpose for you to stay an extra day from that conference and have meetings with people, then your hotel would be deductible for that extra day and your rental car, Ubers, any of that

stuff is serving a business purpose.

>> Okay, good. Because I did that a couple years ago. I had like the next day I I was actually I have cousins in Florida and so they I was thinking about locoming at their hospital. and so I

did that.

>> Do crazy stuff with travel. So we'll see real estate agents that are taking all these trips saying that they're looking at potential properties and in three years they never buy a property.

>> Yeah.

>> So you don't want to go down that road where you're taking all these meetings, you're taking all these deductions

>> and you never take another job.

>> Yes. Yes. Yeah. That was the only time I've done it. But I was just curious about that because I was like I my CPA said at the time said it was fine. and then he just said to us what he recommended at the time was just that I

keep track of all my notes. So I kept track of every email correspondence with the people. I recorded, you know, I had a little meeting minutes. So I said like this is who I met with, this was our

purpose and you know what we discussed. So I kind of I just documented it really well.

>> Yeah. What we don't want to see is you take a family of four down there and you think you can deduct it for the whole family. And I see a lot of people trying to do that.

>> Or a lot of people trying to expense every day meals. We get to the end of the year and we've got $25,000 of meal deductions.

>> Yeah.

>> You know, I can easily see right away that that's not accurate.

>> Great, great tips. Okay, so now sheltering wealth, we're almost done. So we just have a couple more slides and then we'll take some time for questions. So sheltering wealth. so

we this could be a whole another webinar and I I think we do eventually want to host another webinar on these specific topics. So it's going to be a little bit general here and then if you do have questions you can ask them during the

Q&A but health insurance. So if you're part-time it's usually not covered because you're either probably eligible for it on your own insurance through W2 job or you might be eligible through it

through your spouse's plan if you're full-time. it's also if you can qualify it for your spouse's plan, you're supposed to take that. It's not technically deductible then. but if you're full-time and you know you're the

the only bread winner in your family, then it is fully deductible to pay for your health insurance. And then similar so retirement, so if you're part-time, you

can have an a SE IRA and it's based on off of your net profit. And so how it works, so for instance for me, I give my stuff to my CPA at the like end of

February and then they calculate out what my net profit is based off of all my deductions and then they'll tell me how much I can give in my SE IRA for last year. So I haven't given to my SE

IRA yet for my 2025. You have to wait until all your taxes are calculated. And then the other thing is is if you're full-time, another great thing is a solo 401k. And I think it's up to $70,000

that you can contribute for this year. Um, correct me if I'm wrong, Jason, but correct me if I'm wrong, Jason, but that sounds about right. And so there's just a lot more retirement vehicles that you can do if you're full-time and you

have a SE or you have a escort. And there's even things beyond this which we're not going to cover. So if you max out your solar 401k, there's things that you can do even beyond that. So that

will be a different webinar like I said because there's a lot that we could talk about in here. Jason, one question that was submitted was, "So if you're a W2 employee, you give to your 401k,

let's say you max that out, and then you're giving to a backdoor Roth, can you give to a SE IRA as well?" Yeah. First off, I'll start off with I

think this is the most important area of the whole presentation for everyone to to be comfortable with and more familiarized with because there's a lot of opportunities here. if you're a

W2 employee and you're maxing out your 401k through your job, you can still max out your SE IRA because it's a separate retirement plan. Now, if you're

a W2 employee and have a separate escorp and you have a solo 401k, you're limited to the maximum employee contribution you can do, which I believe is 30,000. but beyond that with your

solo 401k, you can still do a company match, which is typically 25% of the wages you take. So, you can double dip on some of these. They don't allow you

to or reduce your contributions to the other one. with with the backdoor Roths, if that's in your plan to do, you want to be careful not to open a SE IRA

or roll over a 401k to an IRA because that'll limit your ability to do that tax-free. So, if you're doing backdoor Roths, you want to be careful on what kind of retirement plans you open.

>> So, you can't do a SE IRA or you still can.

>> If you do a SEI IRA, most of your backdoor Roth contribution will be taxable. So you can no longer do those taxfree. So you just want to make sure

that your plans fit your retirement plan.

>> Okay, that makes sense. Now what if it's like after tax money that you because isn't a back to Roth? I'm I'm not that great on this.

>> Yep. So you do a non-deductible contribution that you can convert to a Roth,

>> but if you have other IAS, you're going to have basis in there that will then be taxable.

>> okay. So, long story short, you don't want to have a separate IRA if you're doing backdoor rots.

>> Okay, that makes sense. All right, so now what gets people in trouble? So, we've covered a lot of this, so I'm not going to dive into this deeply, but if

you don't keep receipts, that's a big no no. So, you cannot rely on credit card statements and bank statements. Those are not itemized receipts. double dipping. so

obviously we've talked about that a number of time. Don't guesstimate. Don't estimate what you're doing. and then mixing funds. So this is another big one. You don't want to have you really want to keep clearly separate

your personal funds from your business funds. And a lot of that is just having liability protection. So if you co-mingle your funds, you kind of lose

that LLC liability protection. And then the savings gaps, you just want to make sure that you save enough for your taxes. And then once again, we're

gonna say this over and over again, documentation is everything. So, keep receipts. Keep itemized receipts, whether it's digital, physical. Make sure you're calculating your percentage and you're you're showing the percentage

use. Keep a very scrupulous mileage log. And then separate your bank accounts. Um, and and and just, you know, if you

and and and just, you know, if you can do a I I find that doing a digital tracking system is a lot easier than, you know, storing your receipts in a shoe box. So, that's very helpful.

and then just a couple things that I wanted to show you about the app, some of the other things that make it really easy during tax time. So, I I don't know about you guys, but I personally have to send invoices to the

one of the hospitals I go to. And it's kind of a pain to make an invoice if you've ever had to do it. And so I wanted when we built this app, I wanted something that was super slick and easy. You could create an invoice within

seconds. So, we have this create invoice feature. you just click it, you select the shifts that you're invoicing for, and it will autogenerate a receipt. And then you just click send, and it sends the receipt to whoever your

recipient is. It's really slick. And if um if you don't send receipts, a lot of if you don't send receipts, a lot of CRNAs or medical professionals are using this to track their total revenue. so

once again, you so here's an example where you create an invoice and like some people are doing it bi-weekly or once a month just depending on how you get paid and then it will

autocalculate how much revenue you should have been paid and it will be on the invoice and it will show up. So, if you if you haven't created invoices, but you have shifts there, it'll show up as unbuild revenue. Once you create an

invoice, it'll show up as outstanding revenue. And then when you get paid, you go to these three dots and you just mark it as paid. And so, you can easily just keep track of everything. Now, the other

really great feature about the app is like I've said, everything should be easily exportable just for yourself for tax time, but also if you're ever audited. And so, we have a reports feature in our hamburger menu that's up

here. And so you just select the type of reports. If it's mileage you want, if it's expenses, if it's all the shifts that you want that you worked over the year or if it's all the invoices you paid, you just select what you want and

then you can either select it by the year, you can do yearto date, you can select all the months from previous years and then you just download it and it will it will send you an Excel

spreadsheet or CVS and or CSV I think it is. it's my sorry my husband's a techie person, not me. and so you

send it there and then you don't have to spend hours trying to put it in a spreadsheet for your CPA. It's all just right there and it's all you can you they can play around and they just select like if they want to do it by

category, they just can change everything very very easily. So it's really slick. Now, just the final message is I just really want I guess my take-h home message is you're not a W2 employee if

you have a well, you might be a W2 employee, but you are a 1099 business owner. So, you have to think like a business owner. So, you need to document to protect yourself and you need to

track everything because tracking is what is going to help you save money and not pay and and to keep more of what you earned. Like I said, you work very very hard. Let's try to help you keep more of

what you earned every single day that you work. So, I think those were the main things we So, 1099 hub, I'll just give a quick one minute shield, then we'll

we'll go into open question time. So, the real solution, whatever method you choose to use, I don't really care. I just want you to stay organized. You need to have a digital solution solution

that is clean and organized and just really works year round. So, you don't want to wait till the end of tax season to try to get everything organized because you will miss deductions. So, that's why we built 1099 Hub. It's just

an all-in-one system that we really hope serves our our CRNA and healthcare community so that nothing nothing slips through the cracks. and if you think about it from like it's $20 a month

or if you pay annually it's $16.58 a month. You guys will be get a a special coupon that you can apply to lower that cost. And if you think about it from if you're a nurse and esthetist and

you do 1099 work, it's probably about five minutes of your time every single month that to pay for the app. So, it's not very much and it's a tax deduction. Um, and in exchange really what the

and in exchange really what the value that it brings is that it saves you hours every month of having to organize things for your business and it will save you a lot of time during tax season where you won't be stressed about taxes as much because it's all there and

organized. And then equally important, having whatever method you choose to do, just make sure that you are recording things that are really specific for your profession because if you miss even like

one legitimate expense, that is money that you're giving away and not keeping in your pocket. So, you just really want to make sure that you have a way to keep track of medical professional specific expenses. so that being said, just I

I hope you guys use the app. If you don't, we're still here as a resource for you. I really want to equip you guys and whatever system you are, just make sure you have a system because you're a business owner. So and then

the last thing that I'm just going to say really quickly is when we do send out the coupon code, you if you're an Android user, you can go straight to the Android site and download the app and apply the coupon code in the Stripe

checkout. But if you have an iOS phone, if you want to apply the coupon code, you have to go to go1099pro.com, which is our company website, and then sign up on the Stripe integration that's on

the website, and that will kick back and we'll auto log you into your your Apple app. So, you don't have to, it's really easy. It kicks you back and does it, but we just we the coupon

codes are all through Stripe, which is a very secure payment meth platform that we use. and you can log on and and decide to do it straight through your Apple phone if you want, but you won't get the coupon code. So, that's it.

I'm gonna send an we're gonna go into question time and I will send out an email with Jason's info. So, if you have specific questions for him that you don't want to ask on here, you can feel free to ask. Jason and I talked

briefly. We can stick around for about like a half an hour if people have questions. So, we are going to I'm going to look at the chat now. I'm going to go to questions time. I'm gonna end this.

Stop sharing. Okay. All right. So, perfect. I see a picture of Jason and then I see the chat here. So, I'm going to

We'll start with this first question. How would home office deductions work with two CRAs living in the same house? That's a great question.

>> Yeah. Yeah. So, if you have two separate offices, you can both take the home office deduction. if you're doing the simplified method, it's just a square footage of each office. If you're doing actual expenses, then you have to

divide those by two or allocate them somehow based on the square footage of your office. You just can't double double dip on those expenses.

>> If you're sharing an office, then you can only take, you know, half of it.

>> Yeah. Perfect. can we do can we also do this when renting an apartment or house?

>> That's a good question. I usually recommend when you're renting you don't have the expense you're going to have with a home. So, the simplified method for that office is probably the best option.

>> Okay, that's that's a really good tip actually. And then can you do can you go over the actual method versus other method again? Yeah. So this can you just

quickly cover briefly the actual method?

>> So essentially if you're using the simplified method, it's $5 per square foot of the office. The actual expenses is all this expenses that qualify multiplied by the percentage use of your

home for that home office. So if that's 5%, you get a 5% deduction of all the expenses. Or, you know, if it's 10%, you get 10%. So that's likely going to be a

better bang for your buck, more deductions there. just more recordkeeping and more a little bit more scrutiny

>> and and I recommend I mean oh I guess a question would be can you switch back and forth between you know years for

>> we kind of treat it just like the auto once you go to actual and you're start appreciating your house you're kind of locked into that method okay

>> so we don't switch back and forth

>> all right actual

>> yeah so maybe if you haven't done it yet calculate out what makes the most sense for you I know for me the actual square footage does when I calculate everything. So, you just probably want to do that for yourself.

Okay. If you go to a weekl long conference Oh, wait. No, someone said never mind. Okay. So, what if you have more than one PRN 1099 and work full-time hours? Are

there restrictions with any tax deductions or exemptions? So, I'm assuming there and you can jump in, Jodianne, if you want to clarify, but are you saying

you're doing all 1099 work or that you work full-time hours as a W2 and then you're doing a 1099 job? I'm thinking they're talking all 1099 work, maybe.

>> Yeah, I think it's multiple 1099 jobs. Um and if that's the case, it's all and if that's the case, it's all self-employment income. It's all treated the same whether you deduct that on your escorp or your single member LLC.

There wouldn't be any restrictions on deductions. They're all legitimate business expenses that you can offset that income with.

>> Okay. And then next question. So can so you can have both a SEAP and a solo 401k?

>> Typically no. So in theory I think yes. If you have a schedule C, you can do the SE and a a S corp, you do the solo 401k, but you usually have to choose one or

the other.

>> so if you're have an S corp, you're probably going to want to choose one of those. The SEP is easy to administer. Um, there's no form 5500 that has to be

there's no form 5500 that has to be filed annually once you get to a certain investment level. So, that's why people do those a lot. the solo 401k comes with some administrative cost to have

somebody manage that.

>> And maybe this would be a really great I just realized maybe people don't know much about an escorp. So, you know, an escorp is you're paying yourself even though you have a business, you're

paying yourself a W2 salary. And typically, maybe Jason, you can talk more. I've seen different numbers for how people calculate what they actually pay themselves, but it's it's

the benefit is that you're only paying the FICA taxes on your W2 income and not on your gross income for your whole business. So, maybe you can talk about

that really briefly.

>> Yeah, and this is something I would talk in more detail with everyone individually if they so choose, but the SCORP allows you to save the payroll taxes. mainly a lot of you will

likely be maxed out for the social security portion, which I think is around 180 in 2026. But if you're a schedule C, you're paying the Medicare tax on all 400,000 of earnings. Where if

you're an escort paying yourself a $200,000 wage, you do not pay that Medicare tax on 200,000. So potential savings there. and that's kind of, like I said, an analysis that everyone

has to run separately. But what the IRS cares about is paying yourself a reasonable compensation. So you can't have $400,000 of income and pay yourself

a $50,000 wage. So they they will not allow that 350,000 net income to not have taxes associated with it. So it's kind of a balancing act to see if it makes sense based on what

your reasonable compensation has to be. What I found is that, you know, between 150 and 200,000 is reasonable. there's other things that go into it,

but basically we have to determine what we can justify. And obviously the lower the better from a tax standpoint, but we don't want to have it looked at.

>> So if you have a separate W2 job,

>> you might not have to have as much salary in your escort because you already have likely maxed out on the social security portion. So everyone's situation would be different in that aspect.

>> Definitely. Okay, there are a few questions on this. solo 401k stuff. I do I'm going to jump to Jamie's question and then we'll go back up just because we've kind of talked about it.

So, someone just said once again, you can't do both a SEAP and a solo 401k. Their CPA said that they could for their escort.

>> You can, but you get limited on how much you can do to both. So, you can't max them both out if they're both in your escorp.

>> Jamie, let us know if that answers your question. If not, we can talk more about it.

>> I think you're just gonna have limitation options on on that. Jamie.

>> Okay. And then going back to the previous question, in that case, is it best to do a solo 401k if I want to do a backdoor Roth?

>> Absolutely. If you're doing backdoor Roths, the solo 401k keeps that money out of an IRA. So, your backdoor Roths won't be taxable.

>> But you can only do a solo can you only do a solo 401k if you're an ESCORP?

>> Nope. Schedule C's can do solo for 401ks. Usually, you know, depending on the income you have in there, most people when they're making a lot of income go to the escorp. So, you know, if your link income's limited on your

schedule C, the SEP is probably easier to manage and has less cost associated with it.

>> Okay. So, it's like it's like a cost

>> reason that you'd not.

>> So, so if you're just a So, just to clarify, if I I'm I'm not an escorp. So, could I do a solo 401k and at what point would that make sense for me to do that

versus a set?

>> Yes, you could. And and then it kind of comes down to what your wage is because that's going to impact, you know, how much

>>

>> but if I'm not doing Sorry, if I'm not doing escort,

>> no, if you're a schedule C and you can do the solo 401k.

>> Okay. And it kind of depends on how much you're paying yourself in salary because if you have a $100,000 salary, you're going to have a $25,000 company match that you can do on top of the 23,000 you

can do as an employee. So if you're already making a $100,000 in a schedule C and doing a $20,000 max se, you know,

are you going to put 40 50,000 to a 401k or are you still only going to do 23? If you're only going to do 23, then the administrative cost of that 401k might

not benefit it. If you're looking to put 70,000 to a solo 401k, then it's definitely going to be better than a SE.

>> Okay. There could be a lot of questions on this. So, lot of questions.

>> Yeah. So, I think Jason is a I'll try we'll try to answer more. I see a few there's a few more, but on the this stuff, but if you guys do have specific questions, Jason's a really great resource to reach out to. And like I

said, we'll probably do just a completely separate webinar on this topic just because there are so many questions. So, I'm going to go on to Brent's question. Is it too late to start the standard deduction mileage for

2026? Technically, you should have been tracking it since January 1st. within reason, you can probably estimate that

for a month, but if everyone should be tracking their mileage and if they're taking the mileage deduction, you're going to want to start tracking that now. Yeah. So, everyone should be tracking their mileage no matter what

they're doing. It's just

>> Yeah.

>> Yeah.

>> You need to track your mileage for your business use percentage. So, no matter which method you're using, you should be tracking your mileage.

>> Okay. So, now, so for a full-time W2 Okay. So, for a full-time W2 employee, I can max out my 401k and max out a SE IRA as a PRN 1099. Yes.

>> Correct.

>> Yeah. And then to clarify, I can continue to contribute to my solo 401k based on my 1099 income even though I also have a W2 job that

provides a solo provides a 401k.

>> Yeah. So depending on your age, you know, if you're over 50, you get a catch-up contribution. But let's just say you can do the $23,000 employee contribution.

You can only do that through your work 401k and your solo 401k. So, if you're doing 15,000 through your W2 job, you can't do 20,000 through your 1099

income. So, you're limited to the maximum employee contribution, but the solo 401k allows you to do a company match based on your wages that you pay in your escorp. so you can do both.

There's just limitations on how much you can do. So, you probably want to calculate out if it makes more sense to have a SE IRA at that point in and so max out maybe your W2 job and then have

a SE IRA.

>> Correct.

>> Okay.

>> Or if you're still looking to get the 70,000 in there, then the solo 401k may allow you to do that based on the company match.

>> Okay. Yeah. Perfect. So, if you are paying student loans, where does this fall when it comes to how much you're allowed to pay yourself? I guess what I'm asking is, is it more beneficial to

pay yourself less to use your student loan deduction?

>> I'm assuming most of you will be phased out of deducting the student loan interest, and I forget where that kicks in, but I want to say most of the phase outs are at 150,000.

So whether you pay yourself a wage or you just are getting your net income, you're still going to have the same income. It's just what how it's taxed.

Not sure if that answers the question, but there's income thresholds for when you can deduct your student loan interest.

>> Okay, Ashley, I love your second question. If the app somehow crashes, is the inputed information retrievable? Yes. So, obviously it's an app, it's a technology, bugs happen, that things

happen where, you know, it might be a backend server that's not even ours, but like the backend cloud that shuts down for a bit. it is everything is doublebacked up. I'm I'm gonna explain

it in lay terms because I'm not a techie person, but everything is secure. So everything is super secure to what what the standards are for the industry.

And then secondly, everything is double backed up. And so there's always I I can't I think it might be every day it does a backup. So if if it were to crash, it would you might lose like a

day or even a week of like information, but your core information will always be there because it's stored on a separate cloud. So does that make if that doesn't make sense? yeah. Okay. Thanks. And

and you know, so I also forgot to say we're we're an app. We're we're new. We've been out for about six months. We have 120 CRNAs using the app right now, which is really exciting. And we've been getting great feedback. and whatever

feedback we get. So if it's whether it's a bug, we try to fix it right away if someone finds it. And then also to any sort of input like we've been saying, oh, I'd love to have this feature and we try to make it. so we're we're we're

really focused on helping our community. And so we're always trying to improve the app. And so this next year we have a couple fun things that we're going to be working on as well. And and we're always working on a ex trying to this

next two weeks we're going to be releasing some new features too just to help out with the user experience. some people wanted something that was like more scrollable where it would do a continuous scroll of the the expenses

because I think you have to flip back and forth with months right now. So if you guys ever have any feedback like just reach out to me personally. I answer every email and so I I really care about you guys having a a great

experience with it. So, yes, I'll email the coupon code. You guys will I'll email some notes, too, of this presentation. So, maybe just some quick formula for, you know, the reviewing the

home square footage, all that stuff. I'll email notes, Jason's information, and the coupon code. probably in the next couple days because I work the next two days, long shifts. so if you're

fulltime 1099 filing sole proprietor, what is the best way to separate bank cards between personal and business use?

That's a good question and I always recommend that you open, you know, a separate business account, a separate credit card just to really only put the business expenses through a business

account. That's the easiest way to track it in total. but it still doesn't eliminate the need to track and categorize actual expenses.

And I will say with a little caveat like if you is it it's okay my I mean is it okay you know you accidentally put something on your personal card you just have to save the receipt and make sure that you are kind of designating that as

a business right

>> absolutely y

>> yeah so if you accidentally put it on your other credit card no don't sweat it you can just take a you can still put it in for your company

>> I think Joel sent me a direct message I think is important he's wondering if I work in one state u that I'm not a resident of, do I have to pay state income tax in that state? And I'm sure

this is common with quite a few of you. And the short answer is most likely. You know, every state that you work in is going to require tax to be paid in that

state. Now, different states have different thresholds. You know, there might be I step foot in this state, I pay tax, or if I make less than 10,000, I pay, you know, don't have to pay tax.

So, every state has to be looked at individually. And depending on what state it is, you know, California, New York, Ohio, some of those states look

at a little closer and will come after you. So if you are working in other states, I mean, bring that up to your tax preparer just so they can advise you on that. And likely you will have a

filing requirement in those states. And if you do pay tax in that state, you get a credit for that tax in your home state. So you're not really paying double tax, but the tax rates might not

line up.

>> So is it beneficial to work in a tax-free state then?

>> Yep.

>> Even if you're traveling to it,

>> if you're physically working in that state, you abide by their tax rules.

>> I should as a motan, I should go to Florida and work there. Um okay, good. Next question. Does the okay, good. Next question. Does the mileage regulation apply if you only drive more than 60 miles from home to

work? So there's not a limitation, right, for how many miles you have to drive for it to be taxdeductible trip, right?

>> No, as long as it's, you know, not to your main place of business. So if your home office is your main place, wherever you drive from home is deductible. If you have a primary place where you work

and you drive there, that would not be deductible. But if you drive,

>> then if you drive to another location after that for a 1099 job, then those miles would be deductible.

>> Okay. So, yeah, it has to be So, it has to be from your office, which could be your home office to your 1099 job, right? That's what you're saying, Jason?

>> Yeah.

>> Yeah. Okay.

>> Sorry, I was reading the text question.

>> Oh, yeah. Yeah. Can you deduct vehicle expenses without having a home office? And how are you affected if you work at only one facility and never travel to any other facility?

>> Yeah. So, with anything, you know, we're going to get into the business use percentage for these vehicles. So, if your vehicle has a 5% business use or no business use, it's

going to be hard to deduct actual expenses on that vehicle or even the mileage rate. It has to have some business use percentage.

>> Yeah. can you explain a backdoor mega Roth again?

>> Yeah. So, I'm I was this is one I was looking at and

>> mega backdoor Roths are a little different than what I was trying to say. So, that's maybe beyond the scope of this, but if you're doing the $7,000 a year non-deductible IRA contribution

because your income phases you out of doing a deductible contribution, that $7,000 would be taxable if you convert that to

a Roth. If you have other IRA accounts, a portion of that would be taxable. If you don't have any other IAS and you make that $7,000 non-deductible contribution, then you can put that into

a Roth without triggering any tax. I'm not sure if that's what she meant by the mega backdoor Roth because that's kind of a a different topic.

>> Okay. next question is Tina's, I purchased a vehicle in 2003 under my business name, but it hasn't been very reliable. I also have an additional vehicle under my personal name. This

year, my income will likely be lower, and I'm considering trading the business card in for a more dependable car. I'm thinking of putting the new vehicle under my personal name while still

deducting actual business expenses. I will still have two cars, one for business and one for personal, both under my name. Can you remind me what the tax implications of the situation

would be?

>> Yes, a lot. I'm going to assume that you're not an escort. So, if the business vehicle is in your personal name, you can still deduct the actual expenses. If you trade that in and you

fully depreciated it, there will be some gain on the trade in or the disposal of that vehicle. And then the new vehicle can continue to have actual expenses

taken. If you have a second vehicle you're using, you're likely taking the the mileage rate. you probably don't have both vehicles that are taken actual. so you can take actual

expenses on one vehicle and business miles on the other vehicle. We just don't want to do gas expenses on the one we're doing mileage on. You know, that's not allowed because that's only for the

vehicle that you're doing actual expenses on.

>> I think she might be asking if she uses one for business and one just for personal separate, like not two business ones. Correct me if I'm wrong, but

>> yeah, if you take it out of the business. so if you took actual expenses on that vehicle, you technically should have a gain on

that vehicle if you just take it out of the business at whatever the fair market value is. So, if it's worth $1,000, you'd have a $1,000 gain on that disposal to take it out of the business.

If you want to continue using that for personal use, that's fine.

>> Yeah, but you should you should you can have multiple cars under your name. but if you have an escort, you should technically take it out under your business name and just have a an

insurance for that, too.

>> Yeah. So, I'm not sure if I fully answered that question, but

>> yeah, let us know or you can always reach out to Jason individually if if that didn't answer it. So, okay. So, not fully transitioned over for to fold 1099 yet for 1099 PRN. Is it worth it to make

an escorp? well, being full-time W2 in the state of California, do I have to make an escorp? You might cat you might want to reach out to him individually for this too, just because

um he might have to look at some numbers he might have to look at some numbers and stuff. I don't know what you think, Jason.

>> Yeah, and with California, they have an $800 minimum fee for for LLC's. So, yeah, reach out to me personally. I'd be happy to to look into that for you a little bit when time allows.

>> And I will say too, if you So, one other question I think that is important to ask is for people that haven't, so I think there are some people maybe attending that haven't done any 1099

work yet. My understanding correct me if I'm wrong is that let's say they're planning to start it this year and they're this is part of right them getting ready to start their business

they can start doing business deductions now for like right you have to you have to set up your business you have these expenses home office expenses you can start to track you can start to track some of these things you know if you're

going to any meetings to network and try to find a 1099 job you can record those the mileage so you can start to record taxes or expenses before you have any

1099 income because the IRS will see it as startup costs. Is that correct, Jason?

>> Correct.

>> Yeah. So, and then regarding the shift portion of the app, can you set up different job sites? Yes. So, I didn't quite get into it. I'll I'll I'll also send out a video that kind of walks you through everything. You can set up

different job sites and locations, and it will change the mileage based on those locations. You can even put in your W2 job and exclude those from mileage tracking just so you have all

your shifts on there if you want or for me when my 1099 job they actually reimburse me for mileage so I have to exclude that for my taxes. So there's lots of ways that you can set it up.

yes I think that should answer that question. Actually the feature that we're currently working on is to have repeated shift functions. So let's say every Monday you go to this 1099 job. you'll now be able to set it on repeat

so that you don't have to constantly add it in. So, that was based off of user feedback that we incorporated it. okay. Can I only get the match for my W2

and use my solo 401k to reach the contribution limit? So,

>> I think the short answer is yes. If you're getting a three or 4% match from your 401k at work and that's all you want to put in there because maybe the investment options aren't that great or you don't have as much control, you

know, you can do that5 or $10,000 W2 contribution and then max the rest out through your solo 401k.

>> Okay, perfect. and then Veronica, I'm messaging you individually where you can send your email to so that you get added to the list. Um, so you can send your email to

so you can send your email to coran1099pro.com. I did just email that to you or just reach out to me on Facebook if that's how we connected. the next one just says Jason.

Maybe that was the start. Oh, thank you, Jason. What's your I'll send out his contact information so you guys will have that. if you live in Minnesota but worked in another state with no income tax, like Florida, you still have

to pay taxes for the wages earned but in your own residential state. Correct. Only way to not pay state taxes is if you live, I'm guessing, in an incomeree

state tax and go to work in another incomeree state tax, right?

>> So, I might have misspoken before when I was saying that. So, yes, all of your wages are taxed in your home state. If you pay tax in another state, then you get a credit for those on your home

state.

>> Okay?

>> So, if you live in Florida, no state tax. If you live in Minnesota, but do some work in Florida, that income is not taxed in Florida, but it's still taxed

in Minnesota.

>> Okay, that's good to know. So, it's better if you just move to Florida

>> or South Dakota.

>> South Dakota. Yeah, there you go.

>> Not as crazy.

>> Yeah, I think that's all the questions that we have so far. So, uh, yeah, I think we'll kind of wrap up yeah, I think we'll kind of wrap up here. I'll, like I said, I'll send you guys Jason's information, the promo

code, and I'll try to put some notes together just from, our presentation today. And, I think that's about it. So, thank you guys. I would love to

hear your feedback. I might send out a survey to you just to see if there is anything else that you guys want to cover for future webinars. I we'd love to cover those things. So, yeah. Thank you guys. Appreciate it. Yeah, thanks

for having me and here to help with any questions anybody has. I'm once again my contact information. Very busy this time of year, but happy to help.

>> Yeah, that was the other thing. Jason is super busy, so I'm really appreciative of the time that he gave us tonight. So, yeah. Thanks you guys.