Tax Day is just around the corner. Be sure to file your tax return (or file for an extension) before it’s too late! If you’re like me, this was taken care of weeks ago. If not, you (or your CPA) have some work to do.
If you, like most physicians, have a high marginal tax rate, you are generally better off deferring as much tax as possible by taking advantage of traditional tax-deferred retirement plans.
The self-employed can take many deductions, whereas an employee is much more limited. Some physicians have the benefit of being both an employee and an independent contractor.
It’s true that combining two incomes can lead to a “marriage penalty“, a situation that arises when the total tax bill of a married couple exceeds the sum of the tax bills they would have paid if they had filed separately.