A recurring theme when speaking with new Independent Contractor Physicians is Taxes, and how to pay less of them. More often than not, the first thing they all do is to calculate how much they think they will make the first year, typically around $300,000, and then they do the math and figure that in the 35% tax bracket, they will pay $105,000 for income taxes, which unto itself is a large number. What they often forget is that they must also pay taxes on self-employed income, also known as FICA/Medicare. If you live in a state with an income tax, this amount gets even higher. There are ways to reduce this number, legally. Keep reading to see how.
What does Warren Buffett have to do with small captive insurance companies and the IRS "dirty dozen" list? Until this week, my answer would have been, "very little." However, after addressing the... Read more