Looking at other tax-saving contributions, an individual over the age of 50 can contribute up to $7000 into a traditional and/ or Roth IRA account for the 2020 tax year.Ħ. Until April 15, 2020, the maximum pre-tax contribution for a family is $7100. The funds in the HSA are not liable for federal income tax at the time of deposit. Physicians with high deductible insurance plans are eligible to contribute annually to health savings accounts (HSA), which can be used for qualified health-related expenses at any time. Health savings account (HSA) and IRA contributions. Meant to bolster the restaurant industry that has suffered throughout the pandemic by encouraging more business meals, restaurant-provided food and beverages that were previously 50% deductible will be fully 100% deductible in 20.ĥ. While business meals for 2020 can be deducted at the rate of 50%, the COVID-19 Relief Bill made changes for tax years 20. This acceleration can generate significant tax savings for both active and passive income.Ĥ. Through a cost segregation analysis, a property is considered as its components, each with its own depreciation rate. For physicians who own real estate besides a primary residence, cost segregation allows an accelerated depreciation from 39 years to as few as 5 years on those retail or rental properties. Physicians who are 1099 and freelancers are also eligible for this deduction.ģ. The qualifying fields vary from the obvious, such as ridesharing and delivery, to the less obvious, such as real estate and medicine, including those who are self-employed. If driving is part of an individual’s job, there is an available option that allows for using the federal mileage rate deduction to claim the mileage costs for reimbursement. Self-employed physicians can qualify for this deduction, which is a 20% deduction of business income, though this is subject to income fadeout.Ģ. It’s not uncommon for physicians to work as an independent contractor besides their full-time job at the hospital. The Tax Cuts and Jobs Act (TCJA) passed in 2017 established a new tax deduction for business owners of ‘pass-through’ businesses, including sole proprietorships, partnerships, and S corporations. Qualified business income deduction (QBID) for personal income. This gives filers a little breathing room after an eventful and harrowing year, and it also provides some extra time to go over tax filings more closely for deductions that may be overlooked that could be saving them money, like these commonly missed tax deductions.ġ. It’s with some relief that most Americans welcomed the news that the 2021 IRS tax deadline had been extended to May 17.
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