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[greentealeaves]

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[sunshinefl]

Besides the Lifetime Learning Credit and deducting up to $2,500 of interest, are there any other tax strategies to take advantage of the big expense of medical school?

None that I know of. With the lifetime learning credit, I got a full refund of all the taxes paid by my husband and me.

 

[greentealeaves]

I guess the other thing you could take advantage of is a 529, especially in states where contributions are tax deductible.

 

[Med Ed]

I'm a little confused by this thread. Most students will be living on loans, which are not considered income, and therefore no taxes are levied. I didn't file a return for four years.

 

[Med Ed]

If you have a spouse who earns income and you file taxes married filing jointly there are a lot of tax strategies you can use to minimize taxes while in medical school.

Thank you for clearing that up. I did not want any readers of this thread to assume that they would be paying taxes on loan money.

The only above-the-line deduction I am aware of that may apply to the married medical student is the interest deduction. With a 2019 standard deduction of $24,400 for married filing jointly, looking for itemized deductions is probably futile (unless your spouse earns a lot of money).

 

[greentealeaves]

Thank you for clearing that up. I did not want any readers of this thread to assume that they would be paying taxes on loan money.

The only above-the-line deduction I am aware of that may apply to the married medical student is the interest deduction. With a 2019 standard deduction of $24,400 for married filing jointly, looking for itemized deductions is probably futile (unless your spouse earns a lot of money).

There is also the Lifetime Learning Tax Credit as well as 529 contributions (especially advantageous if they are tax deductible).

 

[Med Ed]

There is also the Lifetime Learning Tax Credit as well as 529 contributions (especially advantageous if they are tax deductible).

It's rather cynical to view the funding of your child's future education as a tax reduction strategy.

The LLC isn't really something you strategize. You simply claim it if you qualify.

Real tax strategies would involve things like setting up a company for pass-through income, making large, targeted charitable donations, and managing your investment portfolio in a tax-conscious way.

 

[LookForZebras]

If you earn ANY income on the site via 1099 work (for example, teaching and MCAT course or tutoring pre-meds), be sure to write off business expenses. This can range from computer equipment to mileage to textbooks and more.