1099 Income for Physicians: Tax Deductions You May Be Missing

Many physicians earn income outside their primary jobs through consulting, expert witness work, or call coverage. How is that 1099 income taxed, and which business expenses might qualify for deductions?We’re bringing back this conversation from the early days of Doctors Eyes Only® for physicians who may have missed it. As our audience has grown, we’ve continued sharing financial planning topics that address the unique circumstances physicians face throughout their careers. We felt this discussion about 1099 income, business deductions, and tax planning was worth sharing again.In this episode, Lauren Oschman, Partner and CEO of Vestia Personal Wealth Advisors, introduces what she calls “the business version of you.” She explains how income from independent work can differ from W-2 wages, including the responsibility to pay taxes on self-employment income and the role of qualifying business expenses.Lauren discusses potential deductions related to business travel, professional development, medical society dues, business insurance, cell phone use, and a dedicated home office. Eligibility depends on the nature of the work and applicable tax rules. She also explains why keeping business and personal spending separate, maintaining records, and coordinating with an accountant can make managing 1099 income easier.The conversation covers retirement planning for physicians with self-employment income, including SEP IRAs and individual 401(k)s. Lauren discusses why contribution decisions need to account for income from the business and retirement plans associated with a physician’s primary job.She closes with an important reminder: spending money just to claim a deduction isn’t necessarily a sound financial decision. Tax planning should be considered alongside cash reserves, future tax obligations, retirement goals, and other priorities.For physicians earning 1099 income or considering consulting and other independent work, this episode explores questions to discuss with a qualified tax professional and financial advisor.Investment advisory services offered through Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, and Vestia Advisors, LLC, a Registered Investment Advisor with the SEC. Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Rd, Davenport, IA. 52807 (563)326‐2064. Member FINRA/SIPC.Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, Vestia Advisors, LLC and Ausdal Financial Partners, Inc. are independently owned and operated.This material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.Comments on this video are posted voluntarily by third-party YouTube users and do not necessarily reflect the views of Vestia Personal Wealth Advisors.Comments reflect the opinions and assumptions of individual commenters and do not necessarily represent the views, services, fees, or practices of Vestia Personal Wealth Advisors. Vestia does not independently verify all information shared by third parties in the comments and does not endorse or guarantee its accuracy, completeness, or reliability, including statements regarding investment performance, financial projections, advisory fees, or services. Comments should not be considered financial, investment, tax, or legal advice.