Clue-Less Physicians and Taxes

OVER HEARD IN THE DOCTOR’S LOUNGE

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A PHYSICIAN POLL

[IRS Tax Day – May 17, 2021]

“I read a poll on SERMO (a doctor-only web forum) asking what percentage of income was paid in taxes. The lowest option was <20%.  I thought it ridiculous since I make about an average salary and paid about 8% in Federal tax, 3.5% in payroll tax, and 4% in state income taxes. So, I spoke up about it. 

After a few days of correspondence, it became evident that most doctors have no idea what they pay in taxes, or that they pay far too much in taxes.  For example, of 58 responses on the poll, I was the only one who paid less than 20% in taxes.  Keep in mind that more than half of doctors make less money than I do.

I found it hilarious that 4 doctors thought they paid more than 50% in taxes.  I can’t quite figure out how to pull that off; even if you are single, make a ton of money, take a standard deduction, are self-employed, and pay ridiculous state and local income taxes. Really … more than 50%!  You’re either mistaken or stupid … hopefully; just mistaken.

Or is the problem simply that doctor’s have no idea what their effective tax rate is”?

DJ. Morgane DO

[Internal Medicine]

Your thoughts are appreciated.

ORDER TEXTBOOK: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

THANK YOU

***

2 Responses

  1. A CPA’s POV on Taxes

    Here’s what surprises this CPA’s clients most about their taxes.
    https://www.msn.com/en-us/money/news/im-an-accountant-for-ultra-wealthy-people-in-florida-heres-what-surprises-my-clients-most-about-their-taxes-and-what-i-love-about-my-job/ar-BB1gNaHd?li=BBnb7Kz

    Dr. David E. Marcinko MBA

    Like

  2. Tax

    Don’t feel bad physicians … MOST people have no clue what their effective tax rate is, where to find it, or how to calculate it.

    Tax planning is an overlooked and under-served area of financial planning.
    Tax loss harvesting on non qualified assets should be top of mind all year long!
    Also, incorporating tax deferred investment vehicles or municipal securities should be a part of most portfolios.

    JOE

    Like

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