There’s a lot of benefits to working in the medical field and one of them is their specific tax deductions. Whether you own a medical practice or are a primary care physician, LPN, or RN, there’s a number of deductions many don’t take advantage of.
1. Operating Expenses
This one is specifically for doctors who are self employed. You can apply operating expenses with the purchase of office supplies, equipment, phones, pagers, computers, internet, etc. In addition, any programs you are using to fill in a patients’ data is also an operating expense tax deduction.
2. Retirement Savings
Another way of avoiding higher taxes is setting aside money in an account meant for deferring tax. These gives you an opportunity to save. You can save money meant for retirement with an IRA. An IRA helps you avoid paying higher taxes. The IRS sets IRA contribution limits every year. Consult a financial expert to assist you with more options when it comes to retirement savings.
3. Professional Dues
Obviously, before practicing medicine you have to pay all the necessary licensing fees and any other dues owed to the organization. All of these expenses are professional dues and are tax deductible. They include board examination fees, education costs, membership dues and license renewal costs.
4. Health Care Insurance
If you are self employed and paying for your own medical expenses, you can deduct these as a business expense as well. Try to save as much as possible on the HSA contributions. What you contribute to an HSA typically gets removed from your taxable income.
5. Work Space
If, as a doctor, you are using rental an office space, then the upkeep and management costs may be deductible. Always keep a record of all the expenses you’re incurring as you can report them when filing your taxes.
6. Travel Expenses
Of course, travel expenses can be claimed as a business expense. It means you can record all the costs of travel so that you can deduct it from your taxable income. These costs can include mileage, if you are using your own vehicle, airfare, hotel, etc.
7. Mortgage Interest
Mortgage costs, including interest can be claimed while filing taxes. Therefore, it is essential to include it in your tax deduction next time when reporting your taxes.
8. Medical Equipment
Never forget to record all medical equipment costs. As you know, this is what outlines the work of any doctor. Medical equipment are all deductible as business expense.
Other deductions can include staff costs and charitable donations. However, the most prudent thing to do is consult a financial expert before any undertaking