Interstate Compact and Taxes

Tax Season Just Came and Went for Athletic Trainers

A new layer of complexity has been added to the equation.

The interstate compact may create incredible opportunities for athletic trainers to work across state lines more easily.

But with increased mobility comes increased administrative responsibility.

One of the biggest mistakes traveling healthcare professionals make is assuming:

“I’ll figure it out during tax season.”

By then, it may already be a mess.

If athletic trainers are going to work:

PRN events

tournaments

camps

travel assignments

or multi-state coverage

…they should start preparing administratively NOW.

A few things ATs may want to begin organizing:

✅ Track every state worked in

Keep a spreadsheet or app documenting:

▪️ dates worked

▪️ location

▪️ employer/company

▪️ W-2 vs 1099 classification

▪️ income earned

▪️ travel days

✅ Save every contract and invoice

Especially for:

▪️ flat-rate PRN work

▪️ independent contractor agreements

▪️ reimbursement arrangements

▪️ cancellation policies

▪️ travel reimbursements

✅ Separate business and personal finances

If doing 1099 work:

▪️ dedicated bank account

▪️ dedicated credit card

▪️ organized receipt storage

can become extremely important.

✅ Understand your classification

Many ATs may not fully understand:

▪️ W-2 employee vs 1099 contractor

▪️ payroll withholding

▪️ estimated quarterly taxes

▪️ or state filing thresholds

That matters more once working across multiple states.

✅ Work with a CPA EARLY

Not after receiving surprise tax notices.

Especially if:

▪️ working nationally

▪️ traveling frequently

▪️ doing event medicine

▪️ operating an LLC

▪️ or mixing W-2 and contractor income

✅ Keep documentation organized year-round

The more mobile healthcare becomes, the more documentation matters:

▪️ mileage

▪️ flights

▪️ hotels

▪️ meal allowances

▪️ per diem

▪️ equipment purchases

▪️ licensure fees

▪️ CEUs

▪️ liability insurance

The interstate compact may improve portability.

But portability also increases the need for:

▪️ operational awareness

▪️ financial literacy

▪️ and administrative discipline.

Healthcare mobility is no longer just a clinical issue.

It’s becoming a business and compliance issue too.

DISCLAIMER - This is not legal or tax advice. Every state has different laws and requirements. Please seek a tax professional for more support and information.

This is a conversation I think the profession needs to start having more openly.