Tax Planning
Get expert tax advice on how to structure finances to avoid overpayment
By taking a holistic view of tax planning in conjunction with investment strategies, Earned can help identify ways you may not have considered to help lower your tax bill, generating tax savings that further fund your financial goals.
Doctor-specific tax expertise whether your income is from W-2 wages, 1099 contract work, or practice ownership
Synchronized planning across all elements of wealth with the goal of minimizing annual tax burden
Advanced technology to identify tax loss harvesting opportunities and tax-smart asset location strategies
Why it's important:
On average, physicians pay around $100,000 in federal, state, and local taxes*. As a high-income professional, smart tax planning is essential to make sure you are not overpaying. By reviewing your tax returns, investments, and estate documents, we may be able to identify strategies to help reduce your taxable income, generating tax savings that can go towards funding your financial goals.
See how Earned supports doctors with:
Building a thoughtful tax plan for side income, creating significant savings
After beginning to take on supplemental locum tenens assignments, this doctor realized she needed a more solid financial strategy for her additional income and was starting to feel overwhelmed by the complexities of personal and business taxes. At Earned, we advised that she save this income in a Solo 401(k) account, where the money can stay tax-deferred and grow over time. With this change, our client reduced her taxable income while allowing the locum tenens money she earned to grow tax-deferred until she’ll need it. Scenarios presented are for illustration purposes and may not be typical of all clients. Individual results will vary.
How it works
Use the secure documents feature in the Earned Wealth App to upload your tax returns for your Earned Advisor to review
See how Earned is working to achieve your goals
Through the Earned Wealth App, you will clearly see how Earned is working on your behalf to achieve your goals. Seamlessly share information and connect with your Earned Advisor when it works for your schedule.
Explore the Playbook
Our Doctor Wealth Playbook is a proprietary process that we use to identify, prioritize, and action wealth creation opportunities for our doctor clients. Explore the next pillar in the playbook, Career Advisory.
Your assets are secure
Your assets are custodied at Fidelity and protected by SIPC. As one of the nation’s largest institutional custodians, Fidelity oversees $12.6 trillion in assets under administration as of December 31, 2023. Fidelity’s financial stability, its compliance with industry regulations, and its insurance protection via the Securities Investor Protection Corporation (SIPC) all serve to help safeguard your investments. Investing involves risk. SIPC does not guarantee any level of performance and does not protect against investment losses.
Frequently Asked Questions
As a doctor working long hours, your capacity to stay abreast of the ever-evolving tax code—from tax credits and deductions to available exemptions—is limited. By engaging a professional with doctor-specific tax expertise, you avoid the stress and hassle of preparing your taxes while increasing the likelihood of finding strategies to reduce your tax liability. Tax planning is dynamic. Your circumstances change over time, as do tax laws.
Sources
*Medscape’s 2022 Physicians and Taxes report (https://www.medscape.com/slideshow/2022-tax-report-6015472#1)
**Certain limitations or exclusions may apply. Speak to an Earned Advisor for more information.
Financial Planning
3 New Year's Financial Tasks For Physicians
January is a good time to figure out finances for the rest of the year, and maybe the next decade or more. Tax documents arrive, and with them, opportunities to see what adjustments you wish you’d made last year and can make now. It’s also a good time to figure out what you want 2024 to look like. Vacations? Changing jobs? Taking on locum tenens work? Starting a new practice? Buying out a partner? Charity work? All of those things involve money.
Tax Planning
How to Do a Backdoor Roth: A Physician’s Guide
More and more high earners are using a retirement saving strategy called the Backdoor Roth. This strategy allows them to fund a Roth IRA account indirectly from other savings accounts. Keep reading to learn about how to do a Backdoor Roth.
Tax Planning
1099 vs. W-2 Physicians: Differences, Pros and Cons
The 1099 vs. W-2 tax classification designates someone as an independent contractor or employee in the workplace. There are pros and cons to each type of designation.
Disclosures
The information in this communication was prepared for educational purposes only and is not a solicitation to buy or sell any security or insurance product, nor an offer to provide investment advice. All examples are for illustrative purposes only and may not be relied upon for investment decisions. Nothing contained herein should be construed as legal or tax advice and is not intended to replace the advice of a qualified tax advisor or legal professional. The information presented may have been compiled from third-party sources we believe to be reliable but cannot guarantee its accuracy or completeness.
This communication contains past investment recommendations for illustrative purposes only. Earned Wealth makes no assurances, nor should it be assumed, that recommendations made in the future will be profitable or will equal the performance of the securities included in this presentation. Due to various factors including changing market conditions, such recommendations may no longer be appropriate; nor should any past recommendation be taken as personalized investment advice.
Earned Wealth is an SEC-registered investment adviser. Additional information about Earned Wealth, including its services and fees, is available online at http://adviserinfo.sec.gov/.
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Investment advisory services offered through Earned Wealth, an SEC-registered investment adviser.