Tax deduction moonlighting

[anes121508]

If I pay for license, dea, and state controlled license...work as a fellow 7-5, then moonlight past 5pm as a general attending , can I deduct my licensing stuff from my taxes?

Any tips in general for lowering taxes as a fellow are also very welcomed.

Thanks

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[aneftp]

Depends how you will be paid

Are they paying u w2 per diem rates?

Or 1099 independent contractor rates?

 

[anes121508]

W2 per diem for the moonlighting

I also have a side job writing board prep questions that I get paid via 1099

 

[Promethean]

You can sure try. Worst that will happen is that you will have to pay them back when they deny your deductions.

Advice? Talk to an actual tax professional (not a Jackson Hewitt / H&R Block / Liberty Tax storefront associate who may have only had a few weeks of computer training to file simple returns, and may not actually know squat about tax regs.)

 

[ProwlerturnGas]

W2 per diem for the moonlighting

I also have a side job writing board prep questions that I get paid via 1099

Set up an LLC for your Board prep stuff. Deduct licenses through this entity as you certainly can make a case that you have to be a licensed physician to write these questions. Setting up an LLC is very easy to do.

 

[Promethean]

https://ttlc.intuit.com/questions/2...essional-licensing-costs-nurseing-license-etc

This one is regarding a nursing license, but same thing when it comes to tax purposes. So... note that there is a threshhold... your deductions would have to exceed 2% of your AGI before they'd start counting (and you'd have to be itemizing deductions, and being paid via W-2, not 1099.) All the little exceptions and qualifiers are the reason that I think that it is wise to actually speak with a real tax accountant. You should probably be using one anyway.

I did happen across this article which may be useful, though:

http://whitecoatinvestor.com/tax-deductions-for-medical-professionals/

 

[anes121508]

https://ttlc.intuit.com/questions/2...essional-licensing-costs-nurseing-license-etc

This one is regarding a nursing license, but same thing when it comes to tax purposes. So... note that there is a threshhold... your deductions would have to exceed 2% of your AGI before they'd start counting (and you'd have to be itemizing deductions, and being paid via W-2, not 1099.) All the little exceptions and qualifiers are the reason that I think that it is wise to actually speak with a real tax accountant. You should probably be using one anyway.

I did happen across this article which may be useful, though:

http://whitecoatinvestor.com/tax-deductions-for-medical-professionals/

This is great stuff, I actually love the white coat investor book. A buddy of mine recommended it 3 months ago or so after I wrote a 9K check to the IRS and made some poor investment decisions.

 

[anes121508]

Set up an LLC for your Board prep stuff. Deduct licenses through this entity as you certainly can make a case that you have to be a licensed physician to write these questions. Setting up an LLC is very easy to do.

Thanks! I'll look into this...The white coat investor book has a chapter on LLC and INC and stuff I glazed over, I'll go back and read this.

 

[ProwlerturnGas]

Thanks! I'll look into this...The white coat investor book has a chapter on LLC and INC and stuff I glazed over, I'll go back and read this.

Oh, and getting an accountant is worth his/her weight in Gold.

 

[Random Anesthesiologist]

Set up an LLC for your Board prep stuff. Deduct licenses through this entity as you certainly can make a case that you have to be a licensed physician to write these questions. Setting up an LLC is very easy to do.

Agree. Also set up a home office and talk to an accountant about what to deduct. Some things you can take a one-time deduction, others devalued over time. Plus a portion of utilities, Internet, phone, etc (based on square foot percentage of home office). Don't forget supplies and vehicle expenses if you travel for work.

Seriously, your mind will be blown. Unfortunately, you will have a tax burden more than a regular employee but deductions will hopefully offset things.

 

[easternether]

Don't set up LLC. Huge tax costs. Set up a PC which is an S corporation.

 

[ProwlerturnGas]

Don't set up LLC. Huge tax costs. Set up a PC which is an S corporation.

In my state s-corp set up through PLLC. You can also get c-corp, but for my purposes and probably most physicians, s-corp better

 

[Mman]

Oh, and getting an accountant is worth his/her weight in Gold.

accountants are dirt cheap for what they provide in value to you. Mine charges my wife and I less than $500 per year (which is tax deductible) to save me 10-20K per year and help protect me against making a mistake and protect in case of an audit. It costs almost nothing for the value you get.

I love my accountant. I also don't tell him that I wish we had a flat tax so I didn't need an accountant.

 

[jwk]

I have done a combination of both anesthesia practice and legal case review over the years as a 1099 contractor. It is a huge tax saver. As a 1099, you can deduct pretty much any and all costs associated with your 1099 job directly from your 1099 income, even if it means you had a loss. You have to have the "intent to make a profit". If you have $5000 in 1099 income and $6000 in expenses, your net self employment income will be -$1000. So - if you're providing anesthesia services or anesthesia legal case review, you can deduct: licensing costs, certification costs, CME costs including registration, travel, housing and meals, professional association dues (but not PACs), journals, textbooks, etc. As a W-2 employee, you can only deduct these items to the extent that they exceed a certain percentage of your AGI. It's a beautiful thing.

 

[k12balla]

You can also form an llc and file to be taxed as an scorp to get the best of both worlds without all the hassle. ~$300 to set up on legal zoom.

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