Physicians And Taxes: 6 Notes

Fri 14 Jul, 2023

By Mariah Taylor

The top tax breaks physicians use are charity contributions (70 percent), contributing to pre-paid 401(k) plans (60 percent) and interest on mortgage loans (52 percent), according to a recent survey.

"The Physicians and Taxes Report 2023: Are You Paying Too Much?" released July 13, surveyed 10,011 physicians across 29 specialties between October and January.

Here are five notes on physician taxes:

-In 2022, physicians paid an average of $83,620 in federal taxes and $12,957 in state taxes, up from $76,117 in federal and down from $13,108 in state in 2021.

-Seventy-five percent of physicians said they felt they pay too much in taxes.

-Of physicians, 46 percent do their own taxes and 56 percent said it was important to have a tax preparer who works with physicians.

-The fees for tax preparers have risen by 18 percent since 2021, up to an average of $1,092.

-Eighteen percent of physicians said they had been audited, and of those, 71 percent said they were treated fairly by auditors.

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