Story at-a-glance
- Max retirement accounts to cut taxes and grow savings
- Capture every deduction if you’re 1099 or own a practice
- BOE insurance premiums are deductible and often missed
- Review disability coverage now before income or taxes change
- Tax planning beats tax filing every time
Tax season doesn’t have to be stressful — if you plan smart before the deadline.
Here are three quick financial moves every doctor and dentist should consider before April 15 to lower taxes, boost savings, and protect income.
1. Max Out Your Retirement Accounts
Before Tax Day, you can still make contributions that count for last year.
✅ 401(k) or 403(b):
If you’re employed, confirm you hit the annual limit ($23,000 for 2024, plus $7,500 catch-up if you’re 50+).
✅ IRA or Roth IRA:
You can contribute up to $7,000 ($8,000 if 50+). If your income is too high for a Roth, use the backdoor Roth strategy — contribute to a traditional IRA, then convert it to a Roth.
✅ SEP IRA or Solo 401(k):
If you’re self-employed, this is a powerful way to cut taxable income. You can contribute up to 25% of your net earnings (up to $69,000 for 2024).
Pro Tip: Every $1 you put into a pre-tax retirement account reduces your taxable income — and grows tax-deferred for life.
2. Review Your Deductions and Business Expenses
If you own a practice or do 1099 work, review every deductible expense before you file.
Common deductions for physicians and dentists include:
- CME courses and licensing fees
- Medical equipment and office supplies
- Professional association dues
- Home office (if you work remotely)
- Malpractice and business insurance premiums
And here’s a big one many forget:
Business Overhead Expense (BOE) insurance.
Premiums for BOE coverage are tax-deductible, and the policy pays your office expenses if you’re disabled and can’t work.
For everything else — keep receipts, track mileage, and make sure your accountant classifies expenses correctly.
3. Check Your Disability and Life Insurance
Tax season is the perfect time to review your insurance — because it’s directly tied to your income and financial plan.
Ask yourself:
- Would my disability benefits be taxable or tax-free?
- Do I have enough coverage to replace my after-tax income?
- Has my income or family situation changed this year?
If you pay disability premiums personally (after-tax), your benefits will be tax-free — and that’s exactly what you want.
If your employer pays the premium, those benefits are taxable, which could leave you with less than half your usual take-home pay if you ever become disabled.
This is also a good time to review your life insurance and update beneficiaries or coverage if you’ve had major life changes.
The Bottom Line
Tax Day isn’t just about filing — it’s about planning.
By maxing out your retirement accounts, capturing every deduction, and protecting your income, you’re not just reducing taxes — you’re building long-term financial security.
Next Step: Protect What You Earn
Our team helps physicians and dentists protect their income, families, and futures with smart disability and life insurance strategies.
Request your free insurance review before Tax Day.
Because the best financial move you can make this year is protecting the income that makes it all possible.
