Take Advantage of End-of-Year Tax Breaks for the Self-Employed Physician and Healthcare Professional
There are lots of advantages to being self-employed that include quite a few tax breaks.
Even individuals who are just moonlighting on the side are allowed to set up a retirement plan for their own business and sock away a portion of the money earned into a pre-tax account.
According to Andrew Schwartz, CPA and founder of the MDTAXES Network of CPA's who specialize in providing tax and accounting services to healthcare professionals, "That holds true even for physicians and healthcare professionals who work for a hospital or clinic and are currently participating in that company's retirement plan."
Schwartz lists tax-savings situations for the self-employed as follows:? In 2004 self-employed individuals can contribute up to $18,000 into a SIMPLE
or up to $41,000 into a SEP or a Solo 401(k), depending on their income and whether they participate in a 401(k) plan or 403(b) plan through another employer. Self-employed individuals or Healthcare professionals who turn 50 or older by December 31st can contribute an extra $3,000 into a SIMPLE or a Solo 401(k) this year. ? There's a special loophole that exempts children of self-employed individuals from paying social security, Medicare, and federal unemployment taxes on wages paid by a parent.
For 2004, as long as your child is under the age of 18, you can pay him or her up to $4,850, and your child won't owe any income taxes on that money (assuming they have no other income.)
Even so, you get to deduct the wages paid as a business expense.
As an additional incentive, your child can contribute the lesser of what they earn from you, or $3,000, into a Roth IRA each year.
Imagine what the money contributed will be worth after 50 years or more of tax-free growth!? Self-employed individuals can now deduct 100% of their health insurance premiums paid during the year.
The only catch is that your net self-employment income must exceed the premiums paid.
If you (and your family) are relatively healthy, consider switching to a high-deductible plan and opening a Health Savings Account (HSA) - the new tax-advantaged way to fund your family's healthcare costs.
HSAs are discussed in detail in the August, 2004 Newsletter that can be found at www.mdtaxes.com. ? Another advantage of being self-employed is that you get to deduct certain personal-type expenses against your self-employment income.
When compiling expenses, don't forget to include business miles at $.375 per mile driven.
You should also factor in the business use portion of your computer purchases, internet access, and wireless phone bills.
And if you have a dedicated workspace in your home, claiming the home office deduction will help cut your tax bill.Other valuable tax information specific to healthcare professionals can be found on www.mdtaxes.com.
The MDTAXES Network is an affiliation of CPAs throughout the country that specializes in the tax planning and preparation for young healthcare professionals. Contacting one of the MDTAXES CPAs will help ensure that you minimize the taxes you pay on your self-employment earnings..
Want to Loosen Uncle Sam's Grip on Your Wallet?
Talking About MoneyWith Jim Larranaga(ARA) - The average person pays more than $6,000 in federal income tax, according to the Congressional Budget Office. If you cringe at sending a big chunk of change like that to Uncle Sam, you may be looking for ways to keep a little more jingle in your pocket. I'll give you some tips, but, like me, you should consult a tax advisor before taking steps that could affect your tax status.Maximize deductionsGive to charity. Support your favorite cause or clean out the attic and donate items you don't want to charity. Be sure to get a receipt for donations exceeding $250.Deduct qualified medical expenses.
Consider scheduling elective medical and dental procedures if you think your bills will pass the threshold for deducting medical expenses (7.5% of your adjusted gross income). Don't forget, long-term care insurance premiums may qualify for the deduction.Add up miscellaneous expenses. These and many other costs may be deductible if they exceed 2...
Want to Loosen Uncle Sam's Grip on Your Wallet?
Ira > Want to Loosen Uncle Sam's Grip on Your Wallet?
Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions
Cash Now Corporation, (CHNW) a pioneer and continuing leader in the payday loan industry, is now offering a way for investors to use their 401(k) or IRA rollover assets to finance new Cash Now licenses and expansions and as capital for other new businesses. Cash Now can make this offer now because it has established an exclusive agreement with a U.S. tax consulting firm specializing in 401(k), 403 (b), Pension, Profit Sharing, IRA rollover or other types of retirement plans. The result is that Cash Now can help entrepreneurs and investors use their 401(k), 403 (b), pension, profit sharing, IRA rollovers or other retirement plans to finance the purchase of a franchise. Cash Now can also advise entrepreneurs and investors on how to use these assets as startup capital for other businesses or to purchase business property with no taxes, no penalties and no loan repayment.
This can be done without distributions, taxes, penalties, or the use of loans. In many cases the money can be...
Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions
Ira > Cash Now and Rainmaker Announce 401(k) or IRA Rollover Assets to Finance new Cash Now Licenses and Expansions
Financial Planning for Singles
Financial planning often gets a bad rap. Part of the problem is self-inflicted, since some industry participants would rather sell you a product than address your financial concerns. The process of planning is important, though, whether done with a professional or on your own. After all, you wouldn't leave on a long trip without looking at a map ? a poor analogy for some of us men, but you get the idea.So where should you start? That really depends on you and your situation. Since everyone has different goals, needs, risk tolerances, and concerns, everyone needs a unique plan.
But in general, planning needs to take into account at least three major areas ? insurance, investments, and estate planning. While you can fill a library with all the necessary information to properly address these issues, below are a few single-specific tips to help you get started.InsuranceInsurance is confusing. It comes in all shapes and sizes and covers everything from your car to your health. You...
Financial Planning for Singles
Ira > Financial Planning for Singles
Deadline Near For Taxpayers with an Extension to File
(ContentDesk) August 12, 2004 -- For the almost 8.5 million taxpayers who opted in April to get an automatic extension of time to file their 2003 federal income tax return, the deadline to file those tax returns is August 16, 2004.Those who cannot meet the August 16th deadline can apply for an additional two-month extension, which would give them until October 15th.
However, there's no guarantee that the IRS will grant them an additional extension. If an application for an additional extension is not approved, an individual must file his or her tax return by August 16, or face paying a late filing penalty of 5 percent per month on the unpaid tax.Individuals who own a business have until their tax filing deadline to save on 2003 taxes by contributing to a SEP-IRA retirement plan, says Daniel Lamaute, retirement specialist at Lamaute Capital InvestSafe.com.
The SEP IRA contribution limit for 2003 is $40,000 or 25% of compensation, whichever is less.
A free application...
Ira > Deadline Near For Taxpayers with an Extension to File
HSA for America Publishes Issue 6 of Maximize Your HSA
(ContentDesk) October 31, 2005 -- HSA for America has published Issue 6 of Maximize Your HSA. We feel it is important to help our clients get the maximum value from their health savings account, says Wiley Long, President of HSA for America.
Because HSA-qualified health insurance plans have high deductibles, charges for doctor visits, prescription drugs, and other medical expenses are typically paid for from the health savings account.
By knowing how to keep these expenses to a minimum, and what expenses can be paid for from a health savings account, an HSA owner can save hundreds or thousands of dollars. Maximize Your HSA is published monthly, and distributed via email.
Previous issues have covered ways to keep health insurance premiums low, how to pay for dental expenses from an HSA, and when over-the-counter medicines or nutritional supplements can be...
Ira > HSA for America Publishes Issue 6 of Maximize Your HSA
Ohio PR Veteran Establishes Pecchia Communications
CANFIELD, Ohio (ContentDesk) Nov. 11, 2005 -- Dan Pecchia, a 24-year veteran of Ohio's public relations and news circles, today announced the establishment of Pecchia Communications, a business writing and PR firm.The new firm will serve challenging writing and PR needs of companies and marketing agencies.
Pecchia Communications maintains a website at www.pecchiacomm.com.
"Today's business climate puts a premium on fast, precise and efficient communications," Pecchia said.
"Our practice is set up to serve this growing need."Pecchia had worked for seven years at Innis Maggiore, a Canton-based marketing agency, most recently as a vice president and one of its five managing principals.
Prior to that, he was with Ira Thomas Associates in Youngstown for six years, most recently as director of editorial services.Previously, Pecchia served four years as business editor of The Vindicator, Youngstown, Ohio, a daily newspaper serving northeastern Ohio and western...
Ohio PR Veteran Establishes Pecchia Communications
Ira > Ohio PR Veteran Establishes Pecchia Communications
The Hollywood Graffiti Gown AIDS Awareness Documentary Receives Award for Best International Documentary
London, UK (ContentDesk) April 29, 2006 -- It was recently announced that "The Hollywood Graffiti Gown" a feature length documentary produced by Classic Media Entertainment a London based Production Company was selected to receive the BEST INTERNATIONAL DOCUMENTARY award from the Lake Arrowhead Film Festival in California. The Documentary will have its World Premiere at the festival with a question-and-answer session immediately following the screening.The film takes a very inspiring look at...
hearing aids The Hollywood Graffiti Gown AIDS Awareness Documentary Receives Award for Best International Documentary Ira
Ira > The Hollywood Graffiti Gown AIDS Awareness Documentary Receives Award for Best International Documentary