TAX DEDUCTIONS
As a physician, there may be certain tax deductible expenses for you to take advantage of. Your annual deductions should be reviewed and processed by a competent C.P.A. It is important to make sure the person handling your taxes has an active and current C.P.A. license. Below is a list of common tax deductions for a physician.
2011 Federal Income Tax Rates
|
10%
|
15% |
25% |
28% | 33% |
35% |
|
| Married Filing Jointly |
0 - $17,000 |
$17,000 - $69,000 |
$69,000 - $139,350 |
$139,350 - $212,300 |
$212,300 - $373,650 |
Over $379,150 |
| Married Filing Separately |
0 - $8,500 |
$8,500 - $34,500 |
$34,500 - $69,675 |
$69,675 - $106,150 |
$106,150 - $189,575 |
Over $189,575 |
| Head of Household |
0 - $12,150 |
$12,150 - $46,250 |
$46,250 - $119,400 |
$119,400 - $193,350
|
$193,350 - $379,150 |
Over $379,150 |
| Single | 0 - $8,500 |
$8,500 - $34,500 |
$34,500 - $83,600 |
$83,600 - $174,400 |
$174,400 - $379,150 |
Over $379,150 |
2012 Federal Income Tax Rates
|
10%
|
15% |
25% |
28% | 33% |
35% |
|
| Married Filing Jointly |
0 - $17,400 |
$17,400 - $70,700 |
$70,700 - $142,700 |
$142,700 - $217,450 |
$217,450 - $388,350 |
Over $388,350 |
| Married Filing Separately |
0 - $8,700 |
$8,700 - $35,350 |
$35,350 - $71,350 |
$71,350 - $108,725 |
$108,725 - $194,175 |
Over $194,175 |
| Head of Household |
0 - $12,400 |
$12,400 - $47,350 |
$47,350 - $122,300 |
$122,300 - $193,350
|
$193,350 - $379,150 |
Over $379,150 |
| Single | 0 - $8,700 |
$8,700 - $35,350 |
$35,350 - $85,650 |
$85,650 - $178,650 |
$178,650 - $388,350 |
Over $388,350 |
Standard Deductions
| Standard Deduction 2011 |
Standard Deduction 2012 |
|
| Married Filing Jointly |
$11,600 | $11,900 |
| Married Filing Separately |
$5,800 |
$5,950 |
| Head of Household |
$8,500 |
$8,700 |
| Single |
$5,800 | $5,950 |
In addition to either a standard deduction or itemized deductions, there is a personal exemption of $3,700 in 2011 and $3,800 in 2012 for yourself and each dependent.
Tax Deductible Business Related Expenses for Physicians
• Board Fees and Board Review Courses
• Business Gifts (limited to $25 per gift per person)
• Computers and Related Supplies
• Continuing Medical Education (CME)
• Conferences and Conventions
• Medical Association Dues
• Medical License and DEA Fees
• Medical Books and Journals
• Medical Equipment and Supplies
• Pager and Cellular Telephone
• Auto Expenses
- Auto Mileage - 51 cents per mile for 2011 / 55.5 cents per mile for 2012
- Auto Lease Payments
- Car Washes/Detailing
- Gas & Oil
- Insurance
- Repairs and Maintenance
- Registration
- Tires
• Meals and Entertainment
- 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
Student Loan Interest Deduction
• Student loan interest is deducted as an Adjustment to Income on Form 1040
• Voluntary interest payments are tax-deductible
• The 60-month limit is repealed
• Phase-out (Adjusted Gross Income - AGI)
- Single Taxpayer $60,000 - $75,000
- Married Taxpayer $120,000 - $150,000
Temporary Living Expenses while away for Fellowship Training
• Expenses Allowed:
- Transportation
- Rent
- Utilities
- Auto Expenses
- Meals and Entertainment
Itemized Deductions
• Medical and dental expenses (subject to 7.5% of AGI limitation)
• State and local income taxes
• Real estate taxes
• Auto license tax
• Home mortgage interest, including points
• Charitable contributions - cash and non-cash
• Unreimbursed employee expenses (subject to 2% of AGI limitation)
• State and local income taxes
• Real estate taxes
• Auto license tax
• Home mortgage interest, including points
• Charitable contributions - cash and non-cash
• Unreimbursed employee expenses (subject to 2% of AGI limitation)
• Miscellaneous expenses (subject to 2% of AGI limitation) - tax preparation fees, safe deposit box investment expenses, etc.
• Individual Retirement Accounts (IRA) contributions
• Student loan interest
• Moving expenses
• One-half self-employment tax
• Self-employed health insurance
• SEP IRA contributions
• Alimony paid
Adjustments To Income
• Student loan interest
• Moving expenses
• One-half self-employment tax
• Self-employed health insurance
• SEP IRA contributions
• Alimony paid
