Tax Planning

Tax Deductible Business Related Expenses for Sole Proprietors

  • Accounting and Tax Preparation Fees 
  • Board Fees and Board Review Courses
  • Business Gifts (limited to $25 per gift per person)
  • Cell Phone and Mobile Apps
  • Cleaning/Laundry of Medical Uniforms
  • Computers and Related Supplies
  • Continuing Medical Education
  • Conferences and Conventions
  • Dues to Medical Associations
  • Legal and Professional Fees
  • Malpractice Insurance
  • Medical Books and Journals 
  • Medical Equipment and Supplies
  • Medical License and DEA Fees  
  • Medical Uniforms 
  • Telephone/Fax/Internet Access 
  • Auto Expenses
    • Standard Mileage Rate - 65.5¢ per business mile for 2023
    • Auto Lease Payments
    • Car Washes & Detailing
    • Gas & Oil
    • Insurance
    • Repairs & Maintenance
    • Registration
    • Tires
  • Meals
    • 50% Deductible when business related
    • 50% Deductible when away on over-night travel
  • Travel
    • At least 24 hours away from home
    • Transportation and lodging expenses related to business are 100% tax deductible

Request a Tax Preparation and Planning Consultation (discounted rate for residents and fellows)

Student Loan Interest Deduction

  • Individuals may deduct up to $2,500 of interest paid in the current year on student loans 
  • Student loan interest is deducted as an Adjustment to Income on Form 1040
  • Voluntary interest payments are tax-deductible
  • Limited to the first 60 months for which interest payments were required
  • Phase-out (Adjusted Gross Income - AGI)
    • Single    Taxpayer $ 70,000 - $85,000
    • Married Taxpayer $140,000 - $170,000

Itemized Deductions include:

  • Medical and dental expenses (subject to 7.5% of AGI limitation)
  • State and local taxes (capped at a combined $10,000 for income, sales, and property taxes)
  • Home mortgage interest (up to $750,000 of mortgage debt incurred to buy or improve a first or second residence)
  • Charitable contributions - cash and non-cash

Adjustments to Income include:

  • Individual Retirement Account (IRA) contributions
  • Student loan interest
  • One-half self-employment tax
  • Self-employed health insurance
  • SEP IRA Contributions

2023 Tax Planning Guide

2022 Tax Planning Guide

Record Keeping

  • Set up a filing system
  • Consider using a designated credit card for only business related expenses. Request an annual summary statement each year.
  • Digitize documents whenever possible, i.e. bank and investment statements, credit card statements, etc.
  • Shred documents you don’t need
  • Maintain financial records for seven years
  • Maintain a mileage log or mobile app to keep track of moonlighting activities, business meals and travel, automobile mileage, etc.
  • Meals and Entertainment - document business purpose and relationship of parties for all transactions
  • Consider setting up a separate checking account for business purchases and expenses  

Independent Contractor Status

  • No taxes are withheld by employer
  • Net income is subject to self-employment tax of 15.3%
  • Contractor may be required to make quarterly estimated tax payments:
    • 1st Quarter - April 17, 2023 
    • 2nd Quarter - June 15, 2023  
    • 3rd Quarter - September 15, 2023  
    • 4th Quarter - January 15, 2024  

Coverdell Education Savings Accounts

  • Maximum $2,000 per year contribution per child
  • Contributions are not tax-deductible
  • Account growth is tax-free
  • Account must be used for higher education purposes by age 30
  • Phase-out (Adjusted Gross Income - AGI)

    • Single    Taxpayer $  95,000 - $110,000
    • Married  Taxpayer $190,000 - $220,000

Request a Tax Preparation and Planning Consultation (discounted rate for residents and fellows)

Limitations and restrictions apply. Tax rules are subject to change. This is for informational purposes only. Individual situations will vary. Please speak with a qualified tax advisor for information specific to your situation.