Tax Reduction Strategies Series
The third installment in our series of steps physicians can take to reduce thier tax burden is to employ tax credits.
Strategy 3: Look for Tax Credits
Tax credits are dollar for dollar offsets to taxes owed. Unfortunately, most tax credits are phased out for higher income earners. However, if you are a homeowner, you can claim an energy tax credit
of up to 30% of the cost for installing qualifying, alternative energy equipment (available through 2016)
Effective tax reduction can save high earning physicians hundreds of thousands of dollars over their earning years, but it does require a concentrated effort through planning, record-keeping, and, most important, the help of a qualified tax professional.
Other posts in this series:
Strategy 1: Reduce Income
Strategy 2: Increase Deductions
Every individual’s tax situation is unique; therefore, this article is intended to be informational only and not as specific tax advice. Please consult a tax professional.