For the people doing locums, do you have an accounting firm that you use? Any accounting firm suggestions who can help 1099 Scorp taxes in multiple states? I was on White Coat Investor website and saw some accounting firms. Most want a monthly subscription. Anyone use one of the firms on WCI called "Residency to Retirement"? I like the "Residency to Retirement" website but I can't find any information on the credentials of the people running that firm. There are no credentials posted if they are a CPA, EA or someone in their mom's basement.
Accountant for locums
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Most of the professionals locums evade taxes when working outside their normal states.
Because the way 1099 checks are deposited. It’s hard to trace.
Say u work 1099 in California (9-11% state income taxes) and physical location of primary is Maryland (9% county and state income taxes)
U don’t necessarily get a 1 for 1 “credit” for paying California state income taxes as out of state 1099. So most locums won’t dare report California 1099 income as our of state resident. And it’s hard for California to catch them.
Because the way 1099 checks are deposited. It’s hard to trace.
Say u work 1099 in California (9-11% state income taxes) and physical location of primary is Maryland (9% county and state income taxes)
U don’t necessarily get a 1 for 1 “credit” for paying California state income taxes as out of state 1099. So most locums won’t dare report California 1099 income as our of state resident. And it’s hard for California to catch them.
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I don't take the recommended people on wci's website seriously anymore.
One guy I contacted wasn't even doing it anymore and referred me to someone else who was horrible and didn't communicate at all.
Another person offered me terrible rates (variable) that were way higher than the fixed rates I was being offered.
One guy I contacted wasn't even doing it anymore and referred me to someone else who was horrible and didn't communicate at all.
Another person offered me terrible rates (variable) that were way higher than the fixed rates I was being offered.
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I have had my own accountant pre-1099, and he set up my LLC/S-corp. I pay state taxes in the states I work that require taxes.
Arch Guillotti
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WCI is pretty spammy these days.
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Yup, all these docs pushing RE are scammy. WCI started out “helpful” years ago, now he’s just a fundraiser for himself and other syndicators. Stay away.
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I wouldn't say he was "helpful"
I am so grateful to him for his early work and especially his book. It definitely changed my life and started me on the journey to financial independence. I was even talking to a financial adviser at northwest mutual (sponsored by my medical school!) right before I heard about his personal horror story with them. That 1% + heavy loads would have taken so much monye from me. Dr Dahle has saved me probably tens if not hundreds of thousands of dollars.
Agreed - I used Physician Tax Advisors for 2 years (discovered through WCI) - high turnover - no way to communicate except for online. I felt like I was advising them more than the other way around. High cost was not justified.
Just have to be careful - especially with how much income you're bringing in. As someone who's been audited before with not having all 1099s lined up - dealing with the IRS sucks. It wasn't intentional but an error was made with 1099 and state reporting. Technically if you're doing work above a certain threshold in a certain state that has an income tax - you are required to pay taxes in that state. That amount of $ is deductible from your home state taxes - I know people who still wing it and don't file taxes in multiple states - I just don't mess around with it anymore. To each their own. Paying taxes sucks. But for me, dealing with the IRS is more anxiety provoking. If i get to a point where more $ is going to taxes then to me - and it's not worth it to me - I just stop working.
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when I looked at a highly rated one on WCI, their rate was a lot higher than some of accountants my colleagues used locally. i think best to find word of mouth local ones.
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anyone looked at the other accountants on WCI?
I was looking at Fox and Co, and wanted to see if anyone had experience with them?
I was looking at Fox and Co, and wanted to see if anyone had experience with them?
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I’ve used Fox and Co. Expensive for what you get, but they seem fairly knowledgeable. Don't expect them to be proactive about saving you taxes. If I want something done, I’ve had to initiate the idea/conversation from my own research.
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What's the point if you have to research yourself?
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best state to file your llc? Does it make a difference?
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Who did you switch to?
Probably Delaware.
I have done 5 "complementary" 20-30 minutes quick discussion with accounting firms. They all want a monthly subscription ranging from $300-650/month in addition to charging for federal and state(s) business and personal tax filings which are starting filing fees of $1,500-2000 for business. For the $300-650/month they said that includes a quick phone call or e-mail for things like am I able to deduct this or that from a business expense and if you have more extensive questions about tax planning or tax strategy that's $250-450/hr. They all claim they are a different type of accounting firm and aren't the type of accounting firm to nickel and dime you but that seems like what they are doing. Seems like most of these accounting firms know that medical professionals are uneducated about finances and want to capitalize on that. They seem to provide very little in value for what you pay monthly. I just need someone to let me know I'm on the right track doing locums business accounting. But I feel like I can read online or in a book about tax deductions. Just seeing if these monthly subscriptions are what anesthesiologists are paying for accounting
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deleted1183938
How much do you think an accountant is worth? Let’s start there. Because I think I have a good one. What do you want to pay though per year?
It depends. If simple w2 or 1099 with s corp then not much. Maybe 500/yr and that includes filing.
Think about it this way- if accountant charges 3k/yr then that is around 8-9k in “extra” deductions they need to come up with if you are in one of highest brackets just to cover their fee. And my experience with them, including one mentioned above, is poor. I was catching multiple errors.
Turbo tax really does make it so easy if simple1099 or w2 and deductions are easy. Estimated taxes? That’s 4th grade math. Home office, business trips, mileage, office supplies, solo 401k, cell phone, etc. All so easy with turbo tax.
Now it’s a different story if you add in real estate and trying to do cost segregation studies, multiple K1 from different states, complex trusts, etc.
D
deleted1183938
This person is literally asking about multiple state incomes as a 1099 w a possible S Corp. Not exactly simple.
Agreed if s corp. I was responding to you not the above poster. Even multiple state 1099 incomes is pretty simple. Need accountant though for s corp .
You said you have a good one. How much do you pay and how complicated is your return?
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deleted1183938
About 70 pages complicated. I work in multiple states. I have an S Corp. I pay around $3500 per year. Worth it.
For those doing locums (especially those doing full time locums or even part-time locums), did you elect S-corp taxation status? I consulted with a business lawyer prior to starting locums and he said I had 75 days to elect S-corp after LLC formation. Some docs I know doing locums (which most weren't financially savvy) told me to elect S-corp taxation because that's what they did. Anyways, now I am kind of regretting that S-corp election. It's too complicated doing locums work in multiple states and having to set up payroll in each state. The tax savings aren't that great for S-corp. I am getting advice from some CPAs that locums shouldn't elect S-corp. So confusing. For those with S-corp, are you or your accountant running payroll in each state that you work in? What if you only work in one state once and don't go back, do you close payroll? Some of the locums CPAs I have talked to now say don't do S-corp but I already did it since the business attorney advised this.
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After the Tesla fiasco definitely not Delaware for me. For me Wyoming works.
I’ve had various s corps through the years. Shut them down
S corp are less prone to irs tax audits than scheduled C
I just use schedule C the last several years. Single member LLC disregarded entity.
