What’s The Deal With Taxes?

Feel like you’re paying too much for taxes? You are not alone.

“No new taxes!”. Those were the words of George Bush Sr. when he was running for president in 1988. Similar messages are communicated and thought of not only during election years, but this sentiment resonates in the minds of most who are trying to find ways to lower the amount of taxes they pay regardless if it’s an election year.

3D Reduce Taxes Crossword on white backgroundIf I were to ask you if you think taxes are higher than they were 30 years ago, most of you would say yes. While this is true, it’s not quite that simple, let me explain. Approximately 30 years ago, there were only 2 income tax brackets, 15% and 28%. If you filed your taxes as married filing jointly, any income you earned under $29,750 was taxed at 15% and any income you earned over that amount was taxed at 28%. For single tax payers, it was 15% for any income earned under $17,850 and 28% for any income over $17,850. Today, things look a little different. If you file your taxes as married filing jointly, you can make up to $231,450 before you go above the 28% tax bracket. If you file as single, you can make up to $190,150 and still be in the 28% tax bracket. For higher income earners, the highest tax bracket for 2016 is 39.6% and this percentage is used to calculate the amount of taxes you pay for any income over $415,050 for single filers and $466,950 for married joint filers. One common misconception is that if you make $500,000, the entire $500,000 will be taxed at the higher tax bracket. While this might be how it feels, this isn’t the case. You see, your income is taxed at graded increasing levels the higher your total income is. There are currently 7 income tax brackets ranging from 10% – 39.6%. To understand how you’re taxed we need to be familiar with a few terms. You may have heard of the terms marginal tax rate and effective tax rate. The marginal tax rate is the highest tax bracket someone is in based on their total amount of annual income. The effective tax rate is actual tax rate you pay when you figure all of your income because your income is taxed at the different tax rates so some of your income would be taxed at 10%, some at 15%, some at 25%, some at 28% and so on, depending on how much you earn. Continue reading…


doctors life podcast

The Doctor’s Life Podcast Episode 043- Are Taxes Robbing You?

Are Taxes Robbing You?

It’s a good question. You put in the effort to earn your paycheck, and the government wants to say they are taking “their” share. Are they taking more than they should? How will you know and fix it?

Dave Swan is back on The Doctor’s Life Podcast to help you with what to look for if you believe taxes are robbing you and how to take your money back! All episodes of The Doctor’s Life Podcast are available here, iTunes, and Android. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast. Continue reading…


Mid-Year Tax Changes That Will Help You

Making mid-year tax changes can completely change your outlook for the year

Mid-year tax changes are a great way to make sure you’re even with the government come tax season. Remember, if you get a large refund, you’ve given the government an interest-free loan straight from your pocket!

One of the easiest ways to reduce your household income tax liability is to maximize your contributions to tax-deductible vehicles such as 401k, 403b, 457b plans. Each of these allow you to put away $18,000 which means you could take a tax deduction of $54,000. How much tax would this save you if you were in the 35% income tax bracket? That would be $18,900. Simply by shifting your income from once place to another can provide that much tax relief.

taxesSo what happens to the growth inside of these accounts and the income that you can take in retirement? Continue reading…


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The Doctor’s Life Podcast Episode 036- Minimizing Your Taxes

With it being mid-summer, a lot of people don’t think about minimizing your taxes. But right now is the perfect time to evaluate where you’re currently at for the year so your taxes aren’t a complete surprise next year.

Justin Nabity is in The Doctor’s Life Podcast studio with answers to questions you will have when you are leaving your current employer. All episodes of The Doctor’s Life Podcast are available here, iTunes, Android, and on SoundCloud. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast. Continue reading…


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The Doctor’s Life Podcast Episode 008- How’s Your Financial Health?

It’s that time of the year when you’re looking at bills from the holidays, maybe a job offer or going after a job offer, and tax season is starting to roll around. It’s time to ask yourself about your financial health. Sometimes you have to be brutally honest with yourself when assessing your financial health. Nick Schneider is in studio this week to help you determine your financial health.

All episodes of The Doctor’s Life Podcast are available here, iTunes, and on SoundCloud. If you have an Android device, you can download a podcast player (I recommend Podcast Addict), and it will pull from iTunes. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast. Continue reading…


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The Doctor’s Life Podcast Episode 005- You’re Paying Too Much In Taxes

Well, we are about to wrap up 2015. That means it’s about time to dive in to your taxes. Some of us look forward to that refund from the IRS and already have that check spent. That also means we are paying too much on our taxes. Nick Schneider is back on The Doctor’s Life Podcast with a few tips on how to avoid paying too much on your taxes and some easy ways to get Uncle Sam out of your pocket.

All episodes of The Doctor’s Life Podcast are available here, iTunes, and on SoundCloud. If you have an Android device, you can download a podcast player (I recommend Podcast Addict), and it will pull from iTunes.

Continue reading…


Special Needs Trust
What financial documents to keep on file
Physician Retirement

Understanding IRA Options for Physicians

The essentials physicians need to know about different types of individual retirement account options

It has been more than 35 years since Congress enacted legislation that established the Individual Retirement Account (IRA) as an incentive for individuals to take responsibility for their own retirement security. Since then, billions of dollars have flowed into IRAs held by millions of Americans. Then Congress provided another boost to retirement savings by introducing a cousin version to the IRA known as the Roth IRA. Since then, the challenge for many physicians saving for retirement has been to compare the traditional IRA versus the Roth to determine which is most suited to their needs. Continue reading…


Family

Life Insurance as Part of Your Tax Diversification Strategy

The Physician’s Life Insurance Primer Series: How life insurance fits in a savings and tax diversification strategy

For many people, life insurance forms the security foundation of their financial plan. While most financial planners recommend that life insurance be purchased for its protection, and not as a primary savings vehicle, few would argue that cash value life insurance doesn’t have some fairly unique and attractive savings features.  When these are considered in the context of a person’s overall savings and investment strategy, they may offer some advantages for physicians, especially for providing additional tax diversification of income sources. Continue reading…