Information on Taxable Items for Medical Doctors

The medical profession is a specialized field that requires specialized processes, especially concerning taxation and accounting. Aside from the common income tax, there are a few more job-related items and services that are taxable for a practicing M.D. Here are some of them:

  • Supplies. Items necessary for medical practice are taxable, provided that they are not reimbursable by the employer (if individual is not self-employed).
  • Communication. Local phone line service costs are not taxable unless they’re used for official business-related calls.
  • Uniforms. If the individual is required to wear a uniform, both the cost and upkeep can also be considered taxable under specific employer terms. These are taxable if they are either required by the employer, or not adaptable to ordinary street clothes.
  • Continuing education. These are deductible if the employer requires it in order for the individual to keep his job or rate of pay, or if the education maintains/improves the individual’s skill set as a medical professional.
  • Auto travel. Expenses for official business travels are also deductible (this excludes commuting expenses since these are considered personal expenses). Business miles should be documented in a record book, indicating the date, purpose of trip, venue, and odometer reading.

These are just some of the main taxable items and services for a practicing medical professional. Managing expenses and keeping track of these elements can be difficult, which is why specialized accounting help is necessary. 

This entry was posted on Monday, 31 March 2014 and is filed under ,,. You can follow any responses to this entry through the RSS 2.0. You can leave a response.

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