I recently had a conversation with a respiratory therapist now traveling and looking forward to the work and rewards of being in other cities. Like many of our healthcare professionals, he was looking forward to the nightlife, seeing friends, and being part of the fight against COVID-19 at a new hospital. He had a few interesting questions about taxes and deductions that were way out of my realm.
Can you do your own taxes? Should you be doing your own taxes? We cannot all be good at everything. That would be a challenge. The United States tax code is one of the toughest codes in the American system, and it changes every year. Not to mention that each state has different laws that affect different industries, especially healthcare.
As a traveling healthcare provider, you should be working with a professional who knows the tax code and has the ability to research the specific code for each state you are working in. What if you mess up? What if you are placed in an incorrect bracket. What if you could take advantage of a provision meant to help you?
Oftentimes, we focus too much on the cost and not the benefit. We make excuses as to why we pass on a free consultation but then complain when we are penalized for an expensive mistake. Sometimes we don’t know unless we are taught to think differently.
Businesses rely on a series of professionals to guide their decision making. Not only do these specialists render advice and provide peace of mind, but they also open doors to new opportunities. They have connections, experience, and a better way of doing things. They main difference is that most medical professionals need to start thinking of themselves as business you.inc.
There are liabilities, contracts, and opportunities not be missed and money that should not be left at the door. As an independent contractor working in multiple locations, you may not know all of the laws but you are still responsible for certain tax breaks.