tax planning for doctors

The Benefits of Tax Planning for Medical and Healthcare Professionals

tax planning for doctors

You work hard, provide an invaluable service, and your patients love you! Yet, when you look at your earnings, you realize a very large portion goes to the IRS. In fact, Uncle Sam might be taking 40% (or more!) of your income.

You may be wondering if there is a way to legally lower your tax liability. Of course, you want to pay your dues – you just do not want to be overpaying!

There is a way to lower your tax burden – at times substantially – and it is called tax planning. Tax planning involves an analysis of your financial situation to determine, and implement, strategies that will decrease your fiscal liability. A lowered tax burden, of course, frees up resources for growth, expenses, or investment – i.e. all the things you deserve in return for your hard work!

Tax planning is NOT the same as income tax preparation

Many people assume tax planning is the same as income tax preparation, but that could not be further from the truth. When preparing an income tax return, a tax preparer looks at past documentsto calculate whether you paid enough in taxes throughout the previous year. The preparer determines whether you owe the IRS money or will be receiving a refund. It is a passive and historical approach.

Tax planning looks into your future in order to determine what you could be doing in order to lower your tax liability. It is not a passive process. Could you be contributing to an IRA? Are you deducting everything you are eligible for? Are there any business strategies you could be taking advantage of? Is there a better way for you to be making charitable contributions? Do you qualify for any advanced tax reduction strategies?

Your current tax preparer may not specialize in tax planning; this is very common. Just like doctors have different specialties, CPAs also specialize in different fields. Just because a tax preparer does a great job preparing your income tax return does not mean they can help you lower your tax burden.

How tax planning works

Unlike income tax preparation, you do not have to do tax planning every year – in most cases it is enough to do so once every 5+ years.

Tax planning is usually conducted by a Certified Public Accountant with extensive knowledge of tax law, and not a tax preparer (who may or may not be a CPA).

It involves a research process and custom analysis of your entire financial situation to determine ways of lowering your tax liability. This includes: 1) maximizing your deductions; 2) optimizing your retirement and insurance structures; 3) taking advantage of strategies for business owners and self-employed individuals; 4) niche strategies (such as those pertaining to real-estate); 5) advanced tax planning strategies; 6) any other aspects of your taxes and finances that are important to you – such as funding your children’s education.

Following the analysis, a CPA will be able to pinpoint the strategies you can implement in order to lower your tax liability on an annual basis.

Who benefits the most from tax planning?

Some individuals will benefit more from tax planning than others – obviously, higher earners pay higher taxes, so there is more to reduce! We believe tax planning is most beneficial for business owners and self-employed individuals who pay at least $50,000 in taxes annually.

In summation…

If you are a high-income earner, a business owner, or self-employed in the field of medicine or healthcare, and pay at least $50,000 in taxes annually, you may be needlessly overpaying in taxes by thousands of dollars on an annual basis.

Tax planning, unlike income tax preparation, will help you legally lower your tax liability while remaining in compliance with IRS regulations, and free up funds for the things that really matter in life – be it a vacation home or expanding a medical practice.

Ready to find out more?

If you are interested in finding out more about tax planning or would like to schedule a consultation and an analysis of your potential tax savings, feel free to contact us for a no-strings zoom call!

Schedule a complimentary call with us here:

tax planning for doctors

Top 3 Questions About Tax Reduction Planning: Cost, Legality and Who Benefits Most

tax planning for doctors

Tax planning involves an analysis of your financial situation in order to determine, and implement, strategies that will lower your tax burden. A lowered tax burden, of course, frees up resources for growth, expenses or investment.

Below I answer the top 3 questions that seem to be on the minds of our potential clients: is tax planning expensive? Is it legal? Who is it for?

1.      How much does tax planning cost?

This depends on the complexity of your tax and financial situation and how much value we can provide. We charge by the project, and not by the hour. We are usually able to provide a binding quote during an initial phone consultation.

Our tax planning fees start at $3,500.

2.      Is tax planning legal?

Of course. As a CPA firm, we are required to act with professional responsibility as outlined by the Internal Revenue Code. All our strategies are rooted in the IRS code. We will never recommend a strategy that is not fully legal and ethical. We do not deal with gray areas.

We stand behind our services and offer a guarantee.

3.      Who benefits most from tax planning?

Anyone who pays taxes can benefit from tax planning – but the biggest benefits are gained by business owners or self-employed individuals who pay over $50,000 in taxes annually.

Of course, the higher your tax burden, the higher your potential savings will be.

Have questions? Want to find out more? Feel free to schedule a consultation: or fill out a quick survey and I’ll get back to you:

Snart Cloud CPA

Why are you called “Smart” Cloud?

We are an environmentally friendly and paperless office that handles most tasks online, in order to save you time, accommodate your busy schedule and save our planet’s resources. You will never have to fax us anything or send us any paper documents. We offer our medical and healthcare clients free-of-charge, cloud-based solutions that automatically and securely give us access to necessary files and financial documents. All you have to do is sit back and feel good about yourself as you’ll be saving trees, saving dollars, and saving time.

Time better spent seeing what your uncle’s cousin’s ex-wife’s cat has been up to on Instagram. Smart, right?

Tax reduction

How much do your services cost?

We do not charge by the hour (apart from special circumstances). We charge by the project.

Pricing isn’t posted as each client project is unique, just as every patient who walks into your office requires individual treatment.

Instead, we approach your project with a tailored billing structure. Everything depends on the complexity of your individual situation, the services you require, your goals and the amount of savings we can offer you.

You’ll know what your costs will be following an informative phone consultation, as project pricing and investment is agreed upon up-front.

Easier to budget – what a relief, right?

Tax planning

Do you offer a guarantee?

Yes! We work hard and treat your goals and money with care, professionalism and ethical adherence to the law. We are sure of the quality of our work and want you to feel comfortable with the outcome of our services.

If there is a problem with our work, we will return your money. Simple, right?

Tax reduction strategies

Can I still do Tax Planning with you if I’m already working with an accountant?

Short answer yes! We can do all or part of the job.

If you love your current accountant — great! We can augment their accounting with our tax planning analysis, providing you with the comfort of working with your preferred accountant and the benefit of our tax planning and medical industry expertise. Convenient, right?

Income tax planning

I’m not a medical or healthcare professional. Can we still work together?

Yes! Although SmartCloud CPA specializes in creating tax-saving strategies for the medical and healthcare industry, we welcome business owners, partners, and contractors in other sectors interested in reducing their tax burden on a case-by-case basis.

Contact us for a no-strings-attached consultation! Quick, right?

Reducing income tax

I’m not located in Chicago! Can we still work together?

Of course! We work with clients across all 50 states. You can be located in sunny Florida, snowy Idaho, or stuck in traffic dreaming about surfing or skiing. We offer a custom tax-saving strategy for you, wherever you hang your hat. Tech-savvy, right?

Reduce tax liability

I have a question… Can I contact you?

Of course! Contact us any time — we’re dedicated workaholics and will likely respond sooner than you think. Send us your question here.

If your question is really complex and involves research, we will let you know if a fee is required. Fair, right?