MDTAXES is a Valuable Resource to Healthcare Professionals
At this time of year, many young healthcare professionals are pulling long shifts at the hospital, clinic, or in private care; and are not aware of all the expenses they can deduct on their taxes – and those they cannot. www.mdtaxes.com provides a list of many professional expenses commonly incurred, and deducted, by young healthcare professionals. MDTAXES is a network of CPAs who specialize in assisting medical professionals with tax information specific to their situations.
Woburn, MA (PRWEB) January 18, 2005 – The MDTAXES Network is an affiliation
of CPAs throughout the country that specializes in the tax planning and
preparation for young healthcare professionals. At this time of year, many young
healthcare professionals are pulling long shifts at the hospital, clinic, or in
private care; and are not aware of all the expenses they can deduct on their
taxes – and those they cannot.
Andrew Schwartz, CPA and founder of the
MDTAXES Network, has provided the following list of many of the professional
expenses commonly incurred, and deducted, by young healthcare professionals.
“Remember,” advises Schwartz, “to be deductible, any expense must be both
‘ordinary’ and ‘necessary’ in connection with your
profession.”
Automobile expenses
•Deductible: The portion of
automobile expenses attributable to driving between two different workplaces, or
between your principal residence and a temporary job site.
•Non-Deductible:
The portion of automobile expenses incurred while commuting between your
principal residence and a regular place of business.
Beepers and
pagers
•Deductible: The rental fees paid by you for beepers and pagers used
in connection with your employment
•Non-Deductible: Any costs associated with
the personal use of these items.
Cellular phones
•Deductible: The
business portion of the cost of the cellular phone can be depreciation. Plus,
you can deduct the business use portion of the monthly cellular phone
bills.
•Non-Deductible: Any portion of the cost of the cellular phone and the
monthly cellular phone bills relating to personal use.
Computer
purchases
•Deductible: Depreciation on the business use percent of any
computer or peripheral purchased (1) as a requirement of your employment and (2)
for the convenience of your employer.
•Non-Deductible: Any computer and
peripheral not specifically purchased as a requirement of employment or for the
benefit of your employer.
Education, examinations and
licenses
•Deductible: Expenses incurred that are required as part of your
employment and maintain or improve your skills in your current
profession.
•Non-Deductible: Expenses incurred that prepare or qualify you
for a new trade or business.
Insurance
•Deductible: Malpractice
insurance and insurance on business assets
•Non-Deductible: Health, life and
disability insurance. Health insurance is deductible as an "adjustment to
income" if you have net self-employment income.
Interest on school
loans
•Deductible: Up to $2,500 of student loan interest paid during the
year, subject to income limitations.
•Non-Deductible: Interest on school
loans in excess of $2,500 per year.
Professional dues, journals and
subscriptions
•Deductible: Fees paid to join professional organizations or to
subscribe to their journals
•Non-Deductible: Dues paid to business, social or
athletic clubs.
Temporary job assignments
•Deductible: The travel,
lodging, and 50% of the cost of the meals incurred during a job rotation outside
the general vicinity of where you live. The rotation must be for a specific
period of less than one year, and you must intent to return to the city that you
were living in prior to the rotation.
•Non-Deductible: Any expense associated
with a job rotation outside the general vicinity of where you live that will
last for more than a year, or for an unspecified length of
time.
Supplies
•Deductible: Supplies, such as slides for
presentations, that are required in connection with your
employment.
•Non-Deductible: Supplies that don't fall within the definition
of "ordinary" and "necessary" for a professional in your field.
Uniforms
and cleaning
•Deductible: The cost of purchasing and cleaning clothing, such
as lab coats and scrubs, required by your employer that isn't considered
"everyday street clothing".
•Non-Deductible: Items such as suits, shirts,
shoes, ties and wristwatches because they fit the description of "everyday
street clothing"
Other valuable tax information specific to healthcare
professionals can be found on www.mdtaxes.com. Contacting one of the MDTAXES
CPAs will help ensure that you minimize the taxes you pay on your healthcare
professional and self-employed earnings.
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Source : http://www.prweb.com/releases/2005/1/prweb192423.htm