Tax Planning Tips Every Physician Should Know Before Year-End
- Jun 11
- 2 min read
Updated: Jul 11
As a physician, your time is valuable — and when it comes to taxes, a little year-end planning can go a long way toward protecting your income. With the right strategy, you can reduce your tax liability, take advantage of key deductions, and prepare for a smooth tax season.
Here are some essential tax planning tips every physician in the U.S. should consider before December 31st:
Max Out Retirement Contributions
Contributing to a Solo 401(k), SEP IRA, or traditional IRA can significantly reduce your taxable income. If you’re a high-income earner, this is one of the most effective ways to save on taxes while securing your financial future.
Consider Income Deferral or Accelerated Deductions
If you anticipate being in a lower tax bracket next year, consider deferring income (like year-end bonuses) or accelerating deductible expenses (like equipment purchases or CME courses) to lower this year’s taxable income.
Take Advantage of Section 179
Physicians who own a private practice can deduct the full purchase price of qualifying medical equipment and software under Section 179. This is a smart way to upgrade your practice and save on taxes.
Review Your Estimated Tax Payments
Ensure your estimated tax payments are in line with your income, especially if you’ve taken on consulting work, locum tenens shifts, or freelance projects. Avoid underpayment penalties by reviewing your numbers now.
Optimize Your Business Structure
Are you operating as a sole proprietor, S-corp, or LLC? The right entity can make a big difference in how much you owe at tax time. Work with a tax advisor to determine if your current structure is still the most tax-efficient.
Don’t Forget Miscellaneous Deductions
From malpractice insurance and uniforms to licensing fees and continuing education, many work-related expenses are deductible — but only if you keep good records.
At ISTAXPRO, we specialize in helping healthcare professionals like you navigate tax season with clarity and confidence. From tax preparation and compliance to bookkeeping, payroll, and asset protection, we make sure every dollar is working for your benefit.
👉 Visit istaxpro.com today or contact us to schedule your personalized tax planning session.
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