Disclaimer: The information provided herein is for informational and educational purposes only and should not be construed as tax, legal, or accounting advice. It is not a substitute for professional consultation. You should consult your own qualified tax advisor or professional before making any decision or taking any action regarding your specific financial situation.
Filing taxes as a 1099 contractor can feel overwhelming, especially if you’re working locum tenens for the first time. For some providers, the transition from W-2 status raises immediate questions: Am I self-employed? What expenses can I deduct? How do I avoid a surprise tax bill?
For others, like Ebony Thyme, taxes are the last thing on their minds.
When she started locum tenens, Ebony shared, “I was just excited to get a job that paid me more than I had been.” (Locum tenens roles can pay providers up to 40% more than traditional full-time positions.)
With prior travel nursing experience, Ebony believed she was prepared for the transition. However, filing taxes as a 1099 contractor changed her financial responsibilities entirely.
Today, Ebony coaches healthcare professionals as they pursue locum tenens. Register for a free workshop today!
How 1099 Taxes Differ From W-2
The biggest adjustment for many locum providers is understanding how taxes differ between 1099 and W-2 work.
As a former travel nurse, Ebony had felt prepared for locum tenens. “I wasn’t thinking about the difference between a 1099 contractor and a [W-2] travel nurse. The way I was being taxed changed,” Ebony said.
Who’s Responsible?
W-2 contractors file taxes like W-2 employees. However, instead of an employer, your staffing agency manages your benefits, such as health insurance, and withholds applicable taxes from each paycheck.
Alternatively, 1099 contractors qualify as self-employed individuals. You receive your full gross pay and divide that income to cover taxes, benefits, and other expenses.
Instead of an employer withholding Social Security and Medicare contributions, 1099 contractors pay a self-employment tax to cover these contributions.
When Do I Pay Taxes?
Most W-2 employees file taxes by April 15. If additional taxes are owed, payment is typically due at that time.
For self-employed individuals, the IRS requires estimated tax payments throughout the year. According to the IRS, “As a self-employed individual, you are required to file an annual income tax return and pay estimated taxes quarterly.” These quarterly payments cover both income tax and self-employment tax.
What About Tax Deductions?
One advantage of locum tenens work is that 1099 contractors may qualify for certain tax deductions. “We can’t avoid paying taxes, but we can reduce the amount,” Ebony explained.
Locum agencies, like Consilium Staffing, may cover travel, lodging, or licensing. When those costs are not reimbursed, expenses such as meals, mileage, and other business-related costs may be deductible.
According to The Doctor’s CPA, the One Big Beautiful Bill Act restores 100% bonus depreciation for qualified property. This provision allows eligible locum providers to fully deduct certain business purchases, including equipment or technology, in the year of purchase.
The legislation also increases the qualified business income deduction to 23% beginning in 2026. This deduction makes 1099 income more tax-advantageous than W-2 income for some providers.
Always consult a certified tax professional to confirm which deductions apply to your situation.
Working With a Locums CPA
“You can’t do this alone,” Ebony said. “Ask for help and seek out professionals who know what they’re doing.”
She recommends hiring a Certified Public Accountant (CPA) before starting locum tenens work. CPAs specialize in tax preparation, planning, and long-term strategy. You can even find tax professionals who specialize in 1099 tax filing.
That said, CPAs represent a financial investment that some providers may not be able to make before their first assignment. If hiring a CPA isn’t feasible during your first tax season, Ebony encourages self-education.
“We live in a world where you can learn anything. Do your own research,” she said. Learning the basics of 1099 tax responsibilities helps providers make more informed decisions and work more effectively with a CPA in the future.
Make Tax Season Easier in 2026
Navigating tax season as a 1099 contractor doesn’t have to be a barrier to exploring locum tenens. With the right information and support, providers can move forward with clarity and confidence.
Locum tenens work gives providers greater control over both their careers and their income. “The goal as a 1099 contractor is to keep your money,” Ebony said in one coaching video. “You get to determine where your money goes.”
Ebony’s story is one of several shared by providers who have found both financial confidence and professional freedom through locum tenens. Read more locum success stories from 2025.
FAQs about 1099 Taxes and Locum Tenens
Are 1099 contractors considered to be self-employed?
Yes. As a 1099 contractor, you are considered self-employed, which means you are responsible for managing your own taxes, including income tax and self-employment tax.
What is the difference between filing taxes as a W-2 contractor and a 1099 contractor?
A W-2 contractor works for a locum agency who withholds taxes and covers benefits. These contractors must file their taxes by April 15th annually.
A 1099 contractor works for a locum agency but manages their earnings to cover taxes and benefits on their own. These contractors make estimated payments quarterly.
When do 1099 contractors pay taxes?
1099 contractors make estimated quarterly tax payments to cover income and self-employment taxes. This helps avoid large balances due at one time.
What tax deductions are available to locum tenens providers?
Locum providers may deduct certain business-related expenses such as travel, lodging, meals, mileage, and professional equipment. A certified tax professional can help determine what applies to you.
Do I need a CPA to work locum tenens?
You are not required to hire a CPA, but many providers choose to work with one. A CPA can help with tax planning, compliance, and identifying deductions.
Does working with a locum tenens agency change how I file taxes?
As a 1099 contractor, you pay your own taxes, even when working with a locum tenens agency.
Should taxes stop me from considering locum tenens?
With education, planning, and the right support, many providers successfully navigate 1099 tax responsibilities while achieving financial and lifestyle goals.
