Five Important Tax Tips for Medical Professionals

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tax season medical professionalsIt’s tax season again. Replacing the garland and tinsel of the holiday season with red tape and paperwork is certainly not much to get excited about. However, everyone must deal with this necessary evil. Here are just a few tips for those in medical professions that can help make tax time easier and ensure that you receive all of the deductions and credits that you qualify for.

Check the IRS.gov website first.

Read up on all the latest changes and adjustments to income tax law, review deduction qualifications, and learn about current credits that those in nursing and medical fields may be eligible to receive. While you can use your tax returns last year as a starting point, some of those forms and deductions may have changed since last fiscal year. Reviewing will ensure that you have the latest information and won’t have issues as your return makes its way through the system.

Gather everything before getting started.

Organize your records and receipts before you sit down to work on your tax forms or have an appointment with your accountant. Good recordkeeping throughout the year can make this step much easier, but even if you’ve been lax in filing things away properly, it’ll save you time and headaches if you take the time to gather everything together before you being attempting to prepare your tax forms for submission.

Weigh your deductions and decide about itemization.

While it can be tempting to just take the standardized deduction, those in medical fields have the potential to be able to deduct several expenses that could quickly add up to a larger amount than the standard. Uniform and cleaning fees that aren’t covered by your employer; out of pocket costs for equipment that isn’t reimbursed; travel expenses related to work that weren’t reimbursed; expenses related to education and job search – all of these things may be able to be itemized as a deduction on your income tax forms.

Be sure to look for educational tax credits and deductions for student loan interest.

Those who are still in school or are still paying off student loans may be eligible for deductions, adjustments, or credits that have to do with expenses related to their education or interest paid on student loans. Typically, these credits and deductions are directly related to your income level so be sure to do your research and make certain that you qualify to include those benefits on your tax forms.

When in doubt, consult a professional.

Though hiring someone to do your taxes for you might seem like just another expense, it may be a wise move, especially if you have many deductions or work as a contract employee. While those who have nothing more than a simple W2 and standard deductions may be able to save by filing their own taxes, it’s not the best choice for everyone. By hiring a professional accountant or tax specialist, you will reduce the chance of having your return audited and you will decrease the likelihood that you will overpay or not receive the full amount of the refund to which you are entitled. As a medical professional, you may be working long shifts and might not have the time or energy to sit down and complete your tax return in one sitting. Hiring a professional to help can be more convenient, instead of taking all your time to calculate and itemize all your deductions yourself.

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