The Tax Cuts and Jobs Act (TCJA), enacted in 2017, introduced sweeping changes to both individual and business tax provisions—many of which have significantly benefited Certified Registered Nurse Anesthetists (CRNAs). But with key components set to expire at the end of 2025, now is the time to understand what’s at stake and how it might affect your financial picture.
For CRNAs working as 1099 independent contractors, the TCJA’s Qualified Business Income (QBI) deduction has been particularly impactful. This provision allows eligible business owners to deduct up to 20% of their qualified business income, effectively lowering taxable income. If allowed to expire, this could increase a 1099 CRNA’s tax burden by thousands of dollars annually. For instance, losing the QBI deduction could mean an extra $22,000 in taxes for someone earning $300,000 annually.
Bonus depreciation, another TCJA provision, enabled 100% deduction of business equipment and vehicles in the year of purchase. That benefit is now phasing out—reduced to 60% in 2024 and 50% in 2025—further emphasizing the urgency to act before these advantages vanish.
The TCJA also lowered tax rates across nearly every income bracket. If the law sunsets, those brackets would revert to pre-2017 levels. For a dual-income CRNA household earning $375,000, this could translate into nearly $17,000 in additional annual taxes. Standard deductions would shrink, child tax credits would be cut in half, and the estate tax exemption would drop drastically from $27.98 million for married couples to just $11.2 million.
While extending the TCJA could boost GDP and job growth, it comes at a projected cost of $3.6–$4.5 trillion in lost revenue over a decade. Lawmakers face a balancing act: promote economic expansion or manage mounting federal debt? Whether you’re a CRNA working W-2 or 1099, now is the time to evaluate how potential changes could affect your financial plan. Let us help you secure your financial future by exploring proactive strategies before these tax rules potentially expire.
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The opinions voiced in this material are for general information only and are not intended to provide specific financial or tax advice or recommendations for any individual. Please consult with a financial advisor or tax professional for more information based on your specific circumstances.
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