More important than the Krebs cycle.
We here at DOCTORED MONEY feel that people should have some minimum level of understanding of how the US tax system works and how it applies to them. For most physicians, tax payments (particularly income taxes and payroll taxes) will represent an enormous percentage of your “spending”.
How, and how much, you are taxed will affect numerous financial decisions you will make, including: Determining which employer benefits you should participate in; which types of retirement accounts you should contribute to; which investments are most beneficial to you.
This section of the site is our attempt to provide an easily accessible and methodical way for you to begin learning about taxes, while also serving as a reference for specific information you may need.
A site devoted to all aspects of taxation would consist of thousands of web pages, and is not possible. Well, okay, it is possible, and is available at www.irs.gov. But we hope to curate tax information in a way that's relevant and informative, particularly for physicians.
This section will be a never-completed work-in-progress. So come back early and often. Subscribe to our blog page via email or RSS to be notified of new pages as we post them.
Understanding a "W-4" form
You can't get paid unless/until you fill this out and give it to your employer BEFORE you start your job. Fill this out incorrectly, and you could end up being surprised by a giant unexpected tax bill when you do your taxes (in addition to owing penalties and interest to the IRS and/or state).
The "W-2" form: What the heck does it mean, and why did I get one?
This form contains critical information about your compensation, benefits and tax payments (aka withholding) that your employer communicates to you and the IRS. You need it. You can't file your taxes without it. You can't understand your taxes without it.
Taxes for the New Intern
Medical student? Think it’s OK to wait to worry about taxes until Spring of intern year? LOL. How wrong you are. How will you set up your budget unless you know how much tax will be taken out of your paycheck? Don't worry too much though. Check out this sample 1040 to get started.
“Married Filing Jointly” vs “Married Filing Separately”
Married couples may choose to file their taxes jointly or separately based on whichever filing status is most beneficial to them. That's right, it has nothing to do with your actual relationship.
1099-MISC and Side Income
Moonlighting? Side job? Two part-time jobs? Two full-time jobs?! Taxes from a moonlighting or additional job can add complexity and people usually get caught with unexpected taxes. penalties, and interest. Not fun. Don’t let that happen to you. We want you to be happy.