First Time Working as a 1099 Contractor

My first year working as a nurse practitioner, I worked for a primary care clinic as a 1099 contractor. I was paid hourly without benefits. The hourly rate was pretty high for a new grad since no benefits were provided. No taxes were deducted from my paychecks. 

At the same time, I was also working as a nursing instructor part-time. This was a W2 position, so my taxes were automatically taken out of my paychecks. 

Fast forward to the following year when it was time to file my income taxes. I figured since I was paying taxes on my W2 income, that I wouldn’t need to pay taxes on my 1099 income. I went to a CPA that was recommended and we worked on my taxes together. I was disappointed to find out, that although I had already paid ~$20k in taxes through my W2 position, I owed the IRS an additional $10k on my 1099 income. 

Since at that time I didn’t own a home, had no children, or any medical expenses, my CPA told me I didn’t qualify for any tax deductions. I cried that day out of disappointment and paid uncle Sam what I owed. 

Later on, I did my own research, and realized since I was a sole proprietor (same thing as a 1099 contractor), I could deduct a lot of my work-related expenses. This included the $5k I was paying per year for malpractice insurance, license renewal fees, uniform costs, my car lease, cost of tolls, continuing educations fees, cell phone bill, etc. 

I couldn’t believe my CPA didn’t recommend these deductions that I clearly qualified for! The following year, I did my taxes myself with my dad. I had the same 1099 NP job and the W2 instructor job. And guess what? By itemizing my deductions for my 1099 income, I didn’t have to pay the IRS additional taxes this time. Instead, I actually got a refund! 

It turns out, the sweet spot is working as a 1099 contractor and being able to deduct your expenses which will decrease your overall tax burden. Being a 1099 Traveling Nurse Practitioner is icing on the cake. In addition to the items you can deduct that I listed above, you can deduct all meal expenses while on assignment, travel costs, and anything “extra” that your agency does not cover.

It’s important to educate yourself on taxes for 1099 contractors prior to filing your taxes or even accepting a traveling nurse practitioner contract. The tax code in the USA benefits self-employed individuals, but unfortunately, tax “loopholes” aren’t always obvious. So do your research or you too will have the burden of paying too much in income tax.

My Top 4 Most Read Blog Posts

If you are new to the site and not sure where to start, maybe check out these popular posts below. After blogging for 8 years now, these seem to be to most commonly read blog articles. Surprisingly, people have been very interested to learn about recent legislation in California that prevents nurse practitioners from working there as a 1099 contractor. Not surprisingly, maintaining multiple state licenses is the second most read post. It may be time for me to update by 3rd most popular post which is about being paid as a W2 employee vs 1099 contractor. And #4 is a good eye opener for nurse practitioners new to locum tenens.

#1 California AB5 Bill

#2 Maintaining Multiple State Licenses

#3 W2 vs 1099 Pay

#4 The Difference Between a Travel NP and a Travel RN

Finishing in Jacksonville

My 3-month assignment in Jacksonville, FL has come to an end. I had a great experience and wouldn’t mind returning there in the future. The staff is so sweet and fun there, I will surely miss everyone. The owners of the company came to visit the clinic in March. I hadn’t seen them in years but they were very kind as always. They hugged me as if I am family and thanked me for continuing to help over the years. They joked that every clinic leader thinks they can convince me to stay permanently but they always bet that I will continue being a free spirit. 

Each week, the clinic has a “VIP of the week” for an employee that goes above and beyond. My last week they announced me as the “VIP of the week”. They acknowledged me and how appreciative they were of me every day during our morning huddle that week. Some of the employees said they are truly in aww of me and feel inspired. 

Since it is a pretty new clinic (open for only about one year-ish), the staff said they learned so much from me, and how things should be done. A lot of them individually said they would miss me so much and didn’t want me to leave. It made me feel good that I can make such an impact on people in just a mere 3 months. 

They treated me to lunch on my last day, and surprised me with a cake, balloons, and cute card. One of the staff made me a Cuban flan and another one even gave me a $50 gift card which I thought was so sweet. Even the patients were so kind, they brought me donuts, cakes, and cards on my last week as well. 

Interestingly, I was asked to help again in Bradenton when I finished my assignment in Jacksonville. I told them no, that I had just worked in the best place ever and could never go back there until the work culture improved. 

Side note, I caught up with a handful of friends from college during my time in Jacksonville, which was awesome! This is one of my favorite parts of being a traveling nurse practitioner. I get to see people I know but haven’t seen in years. 

Finding balance and the right travel assignment as a nurse practitioner, with Sophia Khawly, NP

I wanted to share my very first podcast interview with you guys! It was done with LocumStory.com. It’s brief, less than 15 minutes long, so you can listen quickly on your way to work. I talk about why being a traveling nurse practitioner is the best life and tips on how to get started.

You can listen to it via the link below or though spotify.

Top 5 things to do in Jacksonville, FL

  1. Jacksonville Beach – This is a fun area. Although the beach water isn’t as nice and turquoise blue as the gulf coast of Florida, the water is clear and warm in summer months. There are often waves large enough for surfing. Besides the beach they have a popular fishing pier. And there are plenty of restaurants and bars in the area to enjoy as well. 

2. Huguenot Memorial Park –  This is the only beach you can drive on the sand with 4-wheel drive vehicles, which can be fun. They have an area for birdwatching too. 

3. Riverwalk – This is a boardwalk along St. Johns River. It’s a nice place to take a long stroll. You have a nice view of downtown Jacksonville and the blue bridge. On Saturdays, they have the Riverside Arts Market under the I-95 bridge. 

4. Fernandina Beach/Amelia Island – Fernandina Beach is located on Amelia Island. You can stroll on Center Street and visit the Artrageous Artwalk. A must see is the Historic District of Amelia Island. It’s a nationally preserved area with lots of shops and restaurants. Fort Clinch State Park is a small fort that was built during the American Civil War, but never finished.  It’s a nice hidden gem. This is probably my favorite place to visit in Jacksonville!

5. Day Trip to St Augustine, FL – St. Augustine is a 30-60min drive from Jacksonville depending on where you are staying. It is well known for its Fort: Castillo de San Marcos National Monument. It is well restored and maintained by the National Park Service. The view from the gun deck is spectacular. They have educational explanations of life and defense at the fort. The St. Augustine Lighthouse and Maritime Museum is also worth visiting. You can climb all the way to the top of the lighthouse. You can also walk along St. George street and they offer ghost walking tours. 

Time Off – Back to Spain

Some readers have asked how I am able to take time off during an assignment. I usually provide the dates I need off prior to starting so that it is in the agreement. If I am not sure of the exact dates yet, I will just tell them I need a week off in the month of February and will let them know the exact time as soon as possible. If I want to take some additional time off that I didn’t let them know in advance, I just give them a one month notice and have them block my schedule. It’s usually not that complicated. 

I took a week and a half off in the middle of my current assignment to meet up with my boyfriend in Spain. We had an amazing time together – the weather was perfect. A little cold but sunny so it didn’t feel that bad. We went to Madrid since it was his first time, and ended the trip in Barcelona – where we initially met last summer. I was thrilled to go back to all of my favorite places in Barcelona. 

When I was in Bradenton, there was a physician that worked with me that is at least 70 years old. He was so in awe of my European sabbatical last summer. He was forever talking about it and saying that he wished he could do that. He had retired twice before but ended up being bored and going back to work. He is originally from Greece and said he would love to spend a summer there. 

I told him that actually he could take a sabbatical as well. I told him the company he worked for has a sabbatical program for providers. He said he has never heard about it and I told him they don’t advertise it. The only reason I knew about it was because they have tried to convince me to go permanent with them before, using the sabbatical as an enticement. I encouraged him to take the sabbatical as soon as possible while he is in good health and can travel to Greece for an extended period of time. 

Fast forward to now, and he messaged me letting me know that his sabbatical for this summer was approved! He is taking 3 months off to spend the summer in Greece. I am so happy for him and glad I was able to influence him living life to its fullest. 

Now, I am trying to figure out if I will move on to another assignment or take some time off. I feel like I would love to have a break, but at the same time, it can be hard to say ‘no’ when you are constantly needed. Can anyone else relate?