It’s tax season again, which seems an even colder season than winter for many of us. Physicians, especially, can feel a chill in the air this time of year as they attempt in vain to get ready for April 15th.
Between taking care of their patients and trying to stay compliant with so many initiatives, many doctors have little time to actually learn the basics of the tax codes that apply to them, and so they wind up getting involved in questionable investments and “tax shelters” to, in the end, save very little.
With a little bit of knowledge, you can wind up reducing your tax bill substantially. Let’s take a look at some ways you can do just that.
1) Business Expenses
If you’re a self-employed doctor and don’t know which expenses are deductible …show more content…
You can do the same thing with any kind of loan. While it’s not a good idea to start thinking about your home as an ATM machine, it is a smart option to move your debt around when there are tax-deductible loans that can work in your favor.
6) Charity
Since doctors are naturally the type of people who genuinely want to help people, they tend to give a lot to charities each year. This generosity can be in the form of cash or time volunteered. These charitable contributions are also tax deductible. Whether you’ve donated $10K, 30 hours of your time, or an old car, you have the right to make these deductions.
You can use an online resource like Turbotax to determine the value of items you’ve given away (say to Goodwill). When it comes to donating your time, you may deduct any miles you have driven to and from your charity location and any other expense associated with donating this time – though you can’t actually deduct the value of the time itself.
Since you work hard to keep your patients from experiencing any pain, we hope this post will keep you from feeling any unnecessary pain come April
Between taking care of their patients and trying to stay compliant with so many initiatives, many doctors have little time to actually learn the basics of the tax codes that apply to them, and so they wind up getting involved in questionable investments and “tax shelters” to, in the end, save very little.
With a little bit of knowledge, you can wind up reducing your tax bill substantially. Let’s take a look at some ways you can do just that.
1) Business Expenses
If you’re a self-employed doctor and don’t know which expenses are deductible …show more content…
You can do the same thing with any kind of loan. While it’s not a good idea to start thinking about your home as an ATM machine, it is a smart option to move your debt around when there are tax-deductible loans that can work in your favor.
6) Charity
Since doctors are naturally the type of people who genuinely want to help people, they tend to give a lot to charities each year. This generosity can be in the form of cash or time volunteered. These charitable contributions are also tax deductible. Whether you’ve donated $10K, 30 hours of your time, or an old car, you have the right to make these deductions.
You can use an online resource like Turbotax to determine the value of items you’ve given away (say to Goodwill). When it comes to donating your time, you may deduct any miles you have driven to and from your charity location and any other expense associated with donating this time – though you can’t actually deduct the value of the time itself.
Since you work hard to keep your patients from experiencing any pain, we hope this post will keep you from feeling any unnecessary pain come April