For dental professionals such as oral surgeons and orthodontists, keeping up-to-date and compliant with taxes is incredibly important, particularly as the healthcare industry as a whole has some uniquely challenging tax rules and regulations.
From complicated deductions and maintaining compliance when tax season comes around, to planning taxes throughout the year, engaging with an accounting firm who specialize in tax planning for oral surgeons, is virtually a must for dental professionals, particularly if they want to increase the amount of time they’re able to spend on high quality patient care.
Challenges faced by dental professionals
With regulations continually changing, and tax laws in what can seem like a constant state of evolution, keeping up with the changes and comprehending the implications of each one, can feel like an uphill struggle.
In addition to these challenges, oral surgeons and orthodontists must also deal with income structures that are complex. With income derived from a range of sources like consulting fees, private practices, and hospital employment, optimizing these streams of income to reduce the burden of tax and make the most of any financial returns, is tricky and time consuming to say the least.
But, with the industry knowledge of a specialist dental tax accountant, dental professionals can be safe in the knowledge that they’re making as many tax savings as they legitimately can each season. Coupled with that, they can also benefit from proactive tax planning guidance specific to the industry, that will help them make sensible decisions when it comes to expanding their business, investing in equipment, or even planning for their retirement.
Let’s look now at some of the most important tax considerations for dental professionals:
With the high earning capacity of oral surgeons and orthodontists, there are a number of tax considerations they must take into account in order to preserve their wealth:
- Independent contractor versus Employee
The employment status of a dental surgeon can have a significant impact on their obligations when it comes to taxes. As an independent contractor, you have a greater degree of control over your work, but you must pay self-employment taxes. Employees are entitled to certain benefits, but they enjoy less flexibility when it comes to business expense deductions.
With help from a tax accountant, dental surgeons can determine whether they should be classified as an employee, or an independent contractor.
- Deductions and credits
Reducing your tax liability as a dental surgeon might include deductions for such things as medical supplies, professional development and business expenses. A dental accountants guidance will help you identify all applicable deductions and credits so that you can maximize your tax savings.
- Tax implications of retirement planning
Vital for dental surgeons and medical professionals, retirement planning has some crucial implications when it comes to taxes, and a specialist tax expert can help you put a strategic retirement plan together that is tailored to your precise needs.
Protecting the wealth you’ve worked so hard to achieve is something every dental surgeon should be invested in, and with specialist accounting for orthodontists, you can breeze through your tax obligations without the worry of missed deductions and credits, or penalties for non-compliance. Planning your taxes and preparing them, no matter how complex your obligations may be, is made simple with dental accounting. So why not alleviate the worry and burden of your taxes, and schedule a consultation with a dental accountant today.