Tax Organizer for Medical Professionals

KEY EXPENSES FOR MEDICAL PROFESSIONALS

A   SUPPLIES & EXPENSES:

Generally, to be deductible, items must be ordinary and necessary to your medical profession and not reimbursable by your employer. Record separately from other supplies, the cost of business assets which are expected longer than one year and cost more than $100. Normally, the cost of such assets are recovered differently on your tax return than are other recurring, everyday business expenses like business cards, medical supplies, etc.

 

B   OTHER EXPENSES:

Expenses of looking for new employment in your present line of work are deductible – you do not have to actually obtain a new job in order to deduct the expenses. Out-of-town job seeking expenses are deductible only if the primary purpose of the trip is job seeking, not pursing personal activities.

C   TELEPHONE EXPENSES:

The basic local telephone service costs of the first telephone line provided in your residence are not deductible. However, toll calls from that line are deductible if the calls are business related. The cost (basic fee and toll calls) of a second line in your home are also deductible, if used exclusively for business.

D   UNIFORM & UPKEEP EXPENSES:

If you are required to wear a uniform in your medical profession, the cost and upkeep may be deductible. IRS rules specify that work clothing cost and the cost of its maintenance are deductible if: (1) the uniforms are required by your employer, (if you’re an employee); and (2) the clothes are not adaptable to ordinary street wear. Normally, the employer’s emblem attached to the clothing indicates it is not for street wear. The cot of protective clothing (e.g., safety shoes or goggles) is also deductible.

 

E   CONTINUING EDUCATION:

Educational expenses are deductible under either of two conditions: (1) your employer requires the education in order for you to keep your job or rate of pay; or (2) The education maintains or improves skills as a medical professional. Costs of courses that are taken to meet the minimum requirements of a job, or that qualify a person for a new trade or business, are NOT deductible.

F   AUTO TRRAVEL:

Your auto expense is based on the number of qualified business miles you drive. Expenses for travel between work locations or daily transportation expenses in going between your residence and temporary work sites are deductible; include them as business miles. Your trips between home and work each day or between home and one or more regular places of work are COMMUTING and are NOT deductible.

Document business miles in a record book as follows: (1) Give the date and business purpose of each trip; (2) Note the place to which you traveled; (3) Record the number of business miles; (4) Record your car’s odometer reading at both the beginning and end of the tax year. Keep receipts for all car operating expenses – gas, oil repairs, insurance, etc., and of any reimbursement you received for your expenses.

G   TRAVEL – OUT-OF-TOWN:

Expenses of traveling away from “home” overnight on job related and continuing-education trips are deductible. Your “home” is generally considered to be the entire city or general area where your principal place of employment is located. Out-of-town expenses include transportation, meals, lodging, trips, and miscellaneous items like laundry, valet, etc.

Document away-from-home expenses by noting the date, destination, and business purpose of your trip. Record business miles if your drove to the out-of-town location. In addition, keep a detailed record of expenses – lodging, public transportation, meals, etc. always list meals and lodging separately in your records. Receipts must be retained for each lodging expenses. However, if any other business expenses is less than $25, a receipt is not necessary if you record all of the information in a diary. You must keep track of the full amount of meals and entertainment expenses even though only apportion of the amount may be deductible.

H   PROFESSIONAL FEES & DUES:

Dues paid to professional societies related to your medical profession are deductible. However, the cost of initial administration fees paid for membership in certain organization or social clubs are considered capital expenses.

Deductions are allowed for payment made to a union as a condition of initial or continued membership. Such payments include regular dues, but not those which go toward defraying expenses of a personal nature. However, the part of union dues which goes into a strike fund is deductible.

 

TAX DEDUCTIONS FOR MEDICAL PROFESSIONALS

 

SUPPLIES & EXPENSES Answering Machine   Bag – Medical   Beeper – Pager   Business Meals (Enter 100% of expense)   Business Card   Briefcase   Medical Equipment   Office Supplies   Recorder & Tapes   Referral Service   Repairs – Equipment   Stationary   Other:     OTHER EXPENSES Professional Subscriptions   Liability insurance   Malpractice Insurance   Journals - Medical   Periodicals – Medical   Legal (Protection & production of taxable income)   Other:     TELEPHONE EXPENSES Cellular Service   Answering Service   Paging Service   Pay Phone   Toll Calls   Other:     UNIFORMS & UPKEEP Alteration & Repairs   Shoes   Cleaning   Hat, Cap   Jacket   Laundry   Pants   Scrubs   Other:   Other:   Other:

 

 

CONTINUING EDUCATION
Correspondence Course Fees
Materials & Supplies
Lab Fees
Seminar Fees
Reference Material
Text Books
Photocopy Expenses
Registration Fees
Transcripts
Tuition
Other:

 

AUTO TRAVEL
Between Medical Facilities
Uniform Cleaning & Maintenance
Continuing Education
Interviews – Position
Out of Town Business Trips
Patient House Calls
Purchasing Equipment & Supplies
Parking Fees
Tolls
Other

 

TRAVEL – OUT OF TOWN
Airfare
Bridge & Highway Tolls
Bus & Subway
Car Rental
Laundry
Lodging (do not combine with meals)
Meals (do not combine with lodging)
Parking
Porter, Bell Caption
Taxi
Telephone Calls (including home)
Train
Other:

 

PROFESSIONAL FEES & DUES
Medical Association Dues
Professional Association Dues
Union Dues
Alumni Dues
Other: