1099 vs W-2 CRNA Net Income Calculator
A 1099 CRNA earning $330K and a W-2 CRNA earning $235K are not $95K apart after taxes, FICA, health insurance, malpractice, and retirement. This calculator does the actual math — including S-corp FICA savings — so you can compare real net income.
How S-corp election changes the math
When a 1099 CRNA elects S-corp taxation, income splits into two buckets: a W-2 salary (subject to FICA) and S-corp distributions (not subject to FICA). Every dollar moved from W-2 to distributions saves 15.3% in FICA up to the Social Security wage base ($184,500 for 20261), then 2.9% above that.
Without S-corp (straight 1099): FICA on $330K ≈ $30,000
With S-corp ($150K W-2 comp): FICA on $150K ≈ $22,950
Annual savings: ~$7,000–$10,000 in FICA alone
Retirement space: the underrated 1099 advantage
A W-2 CRNA at a hospital typically gets access to a 403(b) — employee deferrals up to $24,500 for 20262, plus whatever employer match the hospital offers. Some hospital systems also offer a 457(b) for an additional $24,500 deferral, but not all.
A 1099 S-corp CRNA can fund a Solo 401(k) with both employee deferrals ($24,500) and employer profit-sharing contributions (25% of W-2 compensation). Total annual contributions can reach the 415(c) limit of $72,000 for 20263.
| Retirement vehicle | Annual max (2026) |
|---|---|
| Hospital 403(b) — employee only | $24,500 |
| Hospital 403(b) + employer match (typical) | ~$30,000–$36,000 |
| Solo 401(k) — employee + employer profit-sharing | Up to $72,000 |
What the calculator does not capture
- QBI deduction (§ 199A). If your taxable income is below ~$252K, you may qualify for a 20% deduction on S-corp qualified business income (the distribution portion). This can reduce federal tax on 1099 income significantly — a specialist advisor quantifies this for your situation.
- Income variability. 1099 income is contract-based. Gaps between assignments, credentialing delays, and slow months can significantly affect real annual income.
- PSLF forfeiture. The moment you switch to 1099 work, you exit PSLF eligibility for that period. If you have a large loan balance and were 5+ years into qualifying payments, this is a major cost not reflected here.
- Entity overhead. S-corp formation ($500–$1,500 one-time), payroll service (~$1,200/yr), S-corp tax return (~$1,500–$2,500/yr), quarterly estimated taxes. Budget $3,000–$5,000/yr in accounting costs not included above.
When each path wins on pure net income
1099 wins when…
- Gross contract rate is ≥30% above W-2 equivalent
- You've elected or will elect S-corp
- You have a good accountant (the math only works with proper execution)
- You're not actively pursuing PSLF
- You want maximum retirement contribution space
W-2 wins when…
- Employer offers strong retirement match + 457(b) access
- PSLF is in play (significant loan balance, years of qualifying payments)
- Income predictability matters (mortgage, family planning, etc.)
- Gross rate differential is under 20%
- You want to minimize administrative overhead
Related tools and guides
Model your specific numbers with an advisor
A CRNA-specialist fee-only advisor will run your actual contract rate, loan situation, state tax, and retirement goals — including S-corp setup and QBI analysis. Free match, no obligation.
- Social Security Administration — Contribution and Benefit Base 2026: $184,500
- IRS — 401(k) limit increases to $24,500 for 2026
- IRS — Section 415(c) annual additions limit $72,000 for 2026
- IRS Rev. Proc. 2025-32 — 2026 tax brackets and standard deduction ($16,100 single)
Tax values verified against 2026 IRS guidance. Federal brackets use 2026 single-filer thresholds. Calculator is for illustrative purposes only and does not constitute tax advice.