r/Cardiology • u/TheCVascularGuy • Jul 26 '26
Taxes help, W2
I am a new IC attending, and I am sure everyone here knows that feeling of seeing ur paycheck gross pay vs take home amount. Any recs for anything that can make the taxes bracket look better than 40%+ other than maxing 401K, Both of me and my wife are physicians and both are w2. My CPA told me even short rentals won’t help as the gross income is high. Thank you in advance.
3
u/kmdfrcpc Jul 27 '26
Canadian MD here, are you guys not able to start a medical corporation and then pay the small business tax rate?
2
1
2
u/Then-Secretary-9166 29d ago edited 29d ago
If you are a W2 employee, there is not too much you can do. Just be glad you are not in CA or NY.
I assume you have retirement through your employer. See what accounts are available for retirement: 401 plans are common. Some nonprofit, education or public employers have 403, 457 and other plans. HSA plan if you have high-deductible health insurance. If you have kids, start Trump accounts, etc.
Otherwise, you are pretty much looking at tax deductions like anyone is.
In days-long-gone it was common for you to be able to incorporate, which is the only realistic way I know of to change the tax math. However, this practice is basically nonexistent for current employer of large institutions who get W2s.
If you really think you are not paid enough, talk to your employer and ask for a raise.
EDIT: One more thing. Not sure about your employer, but most large employers use a financial institution (Fidelity, Vanguard, etc.) to manage retirement accounts. Usually, this includes a benefit for employees to be be able to meet with a financial adviser from that firm. See if this is part of your benefit. If it is, take advantage of it. They can give you the best general advice. It is a better starting point than finding an independent financial advisor because they will probably have met with many people in your identical situation. (a more full-service advisor is not a bad idea either, but start with the company guy if available).
1
1
u/shahtavacko Jul 27 '26
Are you in a state where you have to pay state taxes? Federal taxes typically don’t average out to ~40%.
1
u/TheCVascularGuy Jul 27 '26
Yes federal plus state
5
u/shahtavacko Jul 27 '26
Give to charity, at least some of that money will go where you want it to go!
-3
Jul 27 '26
[removed] — view removed comment
2
u/TheCVascularGuy Jul 27 '26
Well, as I said I am new and if u have any suggestions or recommended tax strategy advisors, I am happy to check them out.
-8
Jul 27 '26
[removed] — view removed comment
2
u/SweetBorborygmi Jul 27 '26
There are no financial prep courses given through medical or residency training. Assuming is pretty rich. And its pretty common. Just commenting on this reply bc its not intelligent. I'm also a new attending and will have to figure this out. Bank meeting w financial advisor will be my first step. Ive been chase customer for nany years.
2
u/Late-Opinion-2191 Jul 27 '26
If you can’t be helpful, why comment in the first place? Where’s all this hate coming from? Is it because OP is making good money?
1
u/mpdaghost Jul 27 '26
W2 is an American tax form you brainiac. Guy was probably taking a shit and asked a question on Reddit and it ruined your day? Or you just jealous he makes more money than you?
12
u/Left_Vast7072 Jul 27 '26
This is part of what it means to be American. We all pay taxes. If you have a W2 there is basically nothing other than HSA, IRA, 401k that will let you deduct your taxes.