Tax Deductions for Doctors

by Amanda McMullen

    To help compensate for the expenses taxpayers incur during the year, the Internal Revenue Service offers deductions. While these breaks are available to all taxpayers, some deductions are more likely to apply to taxpayers with certain professions. Doctors, for example, can often qualify for deductions related to business, investments and travel.

    Business Expenses

    If you run your own medical practice, you can deduct many of the business expenses you incur during the year. Common deductible expenses include the cost of office supplies, licensing expenses and board examination fees. Additionally, you can deduct the cost of medical or computer equipment you purchase for your practice. If you are a sole proprietor, claim these deductions on Schedule C of Form 1040. Otherwise, claim them on your business tax return. Sole proprietors can also deduct the employer portion of their self-employment taxes.

    Investments

    Because doctors often earn higher salaries than most other taxpayers, they may invest in stocks, bonds and other securities. Doctors may also purchase investment property and invest in retirement plans. Some investment fees, such as the cost of counsel from an investment broker, are deductible as miscellaneous expenses. You can also deduct costs you pay to manage investment properties, and the contributions you make to qualified retirement plans.

    Travel

    Doctors often travel for business purposes, such as medical conferences and consultations. Many expenses incurred on such trips are tax-deductible, including transportation, food and lodging, although you can deduct only half the cost of meals. If you take business trips during the year, keep all receipts, as well as a log of the miles you travel. If you are self-employed, include these deductions as business expenses on Schedule C of Form 1040. If you are not self-employed, claim travel-related deductions by completing Form 2106.

    Considerations

    In addition to these common deductions, doctors may also qualify to deduct charitable contributions, mortgage interest and their own unreimbursed medical expenses. If you have miscellaneous deductions, such as investment expenses, you can deduct only the amount that exceeds 2 percent of your adjusted gross income. If you don't own your own practice, you can't take deductions for business expenses. However, you can include certain job search costs, such as transportation, food and lodging in your miscellaneous deductions.

    About the Author

    Amanda McMullen is a freelancer who has been writing professionally since 2010. She holds a bachelor's degree in mathematics and statistics and a second bachelor's degree in integrated mathematics education.

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