Medliorate

Improving medical students

Medical Student Tax Strategies

Posted by medliorator on December 10, 2007

remember that the fiscal year ends with the year as well. What this means is that there are some things that you need to do to make sure you make the most of your taxes.

 

1. take advantage of the student loan tax deduction. If you can, you should pay back 2,500 dollars which is the maximum you can deduct on your taxes. The best part about this tax deduction is that it is “above the line” meaning you do not need to itemize to take advantage of this.

 

3. Sign up for the roth IRA or traditional IRA. I think in most cases, you have until you file to sign up, up to the april 15th deadline. Contributing to your roth means you invest with after tax dollars. contributing to a traditional IRA, you pay with pretax dollars, thus you can deduct that on your taxes. Currently, because your tax rate is so low, it may make sense to sign up and contribute to the roth IRA.

 

6. Property/ Housing: If you just bought your place this year, consider waiting till January to pay your property taxes if… so you can deduct it next year when you have enough interest paid to pass the standard deduction. If you just bought your place this summer before moving, also consider waiting to pay your january mortgage until the beginning of the month. If you pay your january mortgage at the end of december, you deduct interest for 2007 and not 2008.

 

7. Plan your big purchases wisely. Sales tax is tax deductible if your sales tax that you pay exceeds the state tax that you pay. This is easily accomplished when you buy a car.

Medical student and resident end of year tax saving strategies [Finance Physician]

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