We find the average ER Doc pays about 28% in Federal income tax. That’s a good chunk of change. But that percentage doesn’t consider various other taxes that likely apply: state income tax (~5%), payroll tax (~5%), sales & local tax (~5%), and property tax (~1%). Combined, those add up to somewhere in the ballpark of 44% of an ER Doc’s income going toward taxes… and that’s before factoring in things like capital gains and estate taxes. With the average ER Doc earning ~$350,000/yr, after-tax income is somewhere just shy of $200,000 given these assumptions. And that’s before retirement contributions, insurance premiums, and other pre-tax deductions.
In this episode, we’ll break down the main tax categories, give a little background into them, and discuss various “what can we do” scenarios to lessen the tax burden. Every bit helps.
Topics Discussed:
- The various layers of taxes you experience in the USA.
- What to be aware of with income tax.
- How to save more money on income tax.
- How paying more money can actually save you money on taxes.
- What you can do about property tax.
- What kind of taxes are on gifts.
Resources Mentioned:
Tags
planning, financial planning, ER doctor, doctors, finances, taxes, retirement
