Do your own taxes as an Attending?

[Gaseous Clay]

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I have been doing my own taxes through residency but now that my tax bill will quickly exceed my residency salary, I was curious as to whether Attendings still do their own taxes or defer to an Accountant? If you have an Accountant do them, approx how much are you getting charged for your taxes? Do you get billed for asking any questions/advice?

BTW, if anyone knows a good Accountant in Georgia, please let me know, I am definitely going the Accountant route.

 

[BLADEMDA]

I have been doing my own taxes through residency but now that my tax bill will quickly exceed my residency salary, I was curious as to whether Attendings still do their own taxes or defer to an Accountant? If you have an Accountant do them, approx how much are you getting charged for your taxes? Do you get billed for asking any questions/advice?

BTW, if anyone knows a good Accountant in Georgia, please let me know, I am definitely going the Accountant route.

Usual range in Georgia is $300-$800 for taxes (W-2 employed). If you are a 1099 or own your own business then $800-2,000 is more the norm.

Most Accountants can find an extra $300 in your return especially for partners earning over $300K. I have done it both ways (my own taxes or accountant) and I can personally tell you that I prefer the accountant route. In addition, the odds of a "reveiew" by the IRS on high earning taxpayers is extremely likely. Most of my partners have been "reviewed" by the IRS within the last 5 years. Please note I said "review" and not audit; they are vastly different things.

 

[BDanes]

What you have to take into account is whether or not you are a W2 employee or independent contractor 1099.

I am 1099 and never had any doubt about using a CPA, and you'd be a fool not to unless you have a family member in the field or an extensive accounting background.

Between quarterly taxes and corporate/personal yearly taxes it costs me about 1200-1600/yr. Almost all of which is written off.

When you become an attending certain things actually are cheaper for you to do by hiring someone else. When I make between 180-350/hr why in the world would I take more than an afternoon trying to educate myself on the complexities of the US tax system. Furthermore, if I were to be audited I cannot even imagine the nightmare of dealing with it. My CPA takes care of this so I don't have to.

We all sit here and cry about midlevels trying expand their scope despite their lack of education. I feel the same about my ability to do my own taxes--I could put in the time and effort and probably do a good enough job to get by, but in the end there are lots of things I would miss and risk is higher given the complexity of my situation.

 

[aredoubleyou]

likie blade said your gunna be on the radar. Chances are the accountant can even save you some cash. But more importantly, the headache of having the irs sniffing around and looking for something is not worth the cash for hiring a cpa. If your 1099 and have a corp or really even a pllc, i think you need your head examined to do your own taxes in this environment.

 

[gaspasser2004]

I have an uncomplicated W2 with only mortgage interest and property tax as my deductions, so I do my taxes myself on turbotax. It takes me about an hour or two. I think it is a good thing to do because it makes you realize where your money is coming and going. My dad is a retired IRS agent so I call him with any questions I may have.

In my dad's experience, doctors are pretty gullible for illegal "get rich quick" tax schemes. There are many accountants out there who will charge you a pretty penny for what seems to be a legit tax shelter. Buyer beware: if it sounds too good to be true, then it probably is.

On the other hand, if I was a 1099, owned rental properties or was always trading in and out of the stock market, having a reputable accountant would probably be a good idea because it would save me the time and hassle of getting my return right.

 

[Gaseous Clay]

I will be a W-2, I expect my taxes to be fairly "simple," but I do have multiple Roth conversions and other investments that may make it a little trickier. In the end, I think the $500 is well spent.

 

[BLADEMDA]

http://www.reallifeaccounting.com/pubs/Article_Theme_CPAs_vs_Non_CPAs.pdf


The CPA turf battle is similar (though not exact) to the MD vs. CRNA turf war.

Some states are going to require some educational requirements and proof of competency in the future for even non CPA accountants.

Like most people who do you prefer doing your taxes? CPA or midlevel accountant?

 

[BLADEMDA]

Yes to licensing!

I believe everyone who does a tax return should be licensed. I have taken over 600 hrs of tax classes in the last 5 years and plan to take the EA exam this fall. Some firms train really well , and you must pass a 4 hour test and get 80% or better to work and others hire people off the street who don't even know what a standard deduction is. This should not be allowed. My state will not allow you to take the CPA exam without a college degree which I do not have , but I have more tax knowledge than most CPA's. Grandfather CPA's and EA's but license everyone else! It will put a better light on tax preparation.






Doesn't the above statement sound like a community college graduate/online BSN/community CRNA school graduate comparing his "education/knowledge" to a Board Certified Anesthesiologist?

BTW, for the Trolls out there some CPA's use these "non CPA's" as assistants so they can prepare more tax returns/do more tax work. That does not and can not make the non CPA equal to a real CPA. Hence, the term midlevel is appropriate for the educational background of a CRNA (even one with an online DNAP).





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[BLADEMDA]

Yes to licensing!

I believe everyone who does a tax return should be licensed. I have taken over 600 hrs of tax classes in the last 5 years and plan to take the EA exam this fall. Some firms train really well , and you must pass a 4 hour test and get 80% or better to work and others hire people off the street who don't even know what a standard deduction is. This should not be allowed. My state will not allow you to take the CPA exam without a college degree which I do not have , but I have more tax knowledge than most CPA's. Grandfather CPA's and EA's but license everyone else! It will put a better light on tax preparation.






Doesn't the above statement sound like a community college graduate/online BSN/community CRNA school graduate comparing his "education/knowledge" to a Board Certified Anesthesiologist?

BTW, for the Trolls out there some CPA's use these "non CPA's" as assistants so they can prepare more tax returns/do more tax work. That does not and can not make the non CPA equal to a real CPA. Hence, the term midlevel is appropriate for the educational background of a CRNA (even one with an online DNAP).





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Study: CRNA Acting Solo Is Most Economical Anesthesia Delivery Model

OutPatient Surgery Magazine

Researchers say increasing the number and role of CRNAs is "key to containing costs."

Nurse anesthetists acting alone are more cost effective than anesthesiologists acting solo or CRNAs supervised by anesthesiologists, according to a new study comparing the costs and quality of various anesthesia delivery models.

"CRNAs acting independently provide anesthesia services at the lowest economic cost," write the authors of the study, published in the Journal of Nursing Economics.

 

[Antibodies]

Study: CRNA Acting Solo Is Most Economical Anesthesia Delivery Model

OutPatient Surgery Magazine

Researchers say increasing the number and role of CRNAs is "key to containing costs."

Nurse anesthetists acting alone are more cost effective than anesthesiologists acting solo or CRNAs supervised by anesthesiologists, according to a new study comparing the costs and quality of various anesthesia delivery models.

"CRNAs acting independently provide anesthesia services at the lowest economic cost," write the authors of the study, published in the Journal of Nursing Economics.

They needed a study to show that paying someone less results in less costs? We should cut costs by cutting that researcher's grants.

 

[leviathan]

"The Journal of Nursing Economics"..wow, now tell me THAT'S not a journal with a hidden agenda.