Physician Tax Deduction
Checklist
Every deduction, credit, and write-off available to physicians in 2026 — organized by income type. Check off what applies to you, then book a call for the ones you are missing.
How to Use This Checklist
Identify Your Income Type
W-2 employed? 1099 contractor? S-Corp owner? Real estate investor? Start with the section that matches your primary income.
Check Off What You Claim
Click each deduction you are already taking. The unchecked items represent potential savings you may be leaving on the table.
Book a Review
Bring your unchecked items to a consultation. We will tell you which ones apply to your situation and how to implement them.
W-2 Physician Deductions
Deductions available to employed physicians receiving a W-2
401(k) / 403(b) Contributions
$8,000 - $15,000Up to $23,500 employee deferral + $7,500 catch-up (age 50+) in 2026. Max out employer match first.
Mega Backdoor Roth (if plan allows)
$10,000 - $25,000+After-tax 401(k) contributions converted to Roth. Total 415(c) limit is $70,000 in 2026.
Health Savings Account (HSA)
$1,500 - $3,500$4,400 individual / $8,750 family in 2026. Triple tax-free: deductible, grows tax-free, withdrawn tax-free for medical.
Backdoor Roth IRA
$1,500 - $3,000Contribute $7,000 ($8,000 if 50+) to traditional IRA, convert to Roth. No income limits on conversion.
457(b) Deferred Compensation
$8,000 - $12,000Additional $23,500 deferral if your hospital offers it. Not subject to 10% early withdrawal penalty.
Student Loan Interest Deduction
$0 - $625Up to $2,500/year. Phases out at $90k single / $185k MFJ MAGI. Most attendings phase out.
Charitable Contributions
VariesItemize to deduct. Cash up to 60% AGI, appreciated stock up to 30% AGI. Donor-Advised Funds for bunching.
State & Local Tax (SALT) Deduction
$2,500 - $14,800Capped at $40,000 MFJ / $20,000 MFS (OBBBA, indexed annually; $40,400 for 2026). Includes property tax + state income tax. Note: The $40,000 cap phases down for taxpayers with MAGI above $500,000, reduced by 30% of the excess, to a floor of $10,000.
Mortgage Interest Deduction
$3,000 - $15,000+Interest on up to $750k of acquisition debt. Must itemize.
Employer-Paid CME / Dues / Licensing
$1,000 - $5,000Negotiate for employer to pay directly or via accountable plan. Not deductible as employee expense post-TCJA.
1099 / Independent Contractor Deductions
Deductions for locum tenens, consulting, and independent contractor physicians
Solo 401(k) Contributions
$15,000 - $28,000Employee deferral ($23,500) + employer profit sharing (25% of comp). Total up to $70,000 in 2026.
SEP-IRA Contributions
$10,000 - $25,000Up to 25% of net self-employment income, max $70,000. Simpler than Solo 401(k) but no Roth option.
Health Insurance Premiums (Self-Employed)
$5,000 - $15,000100% deductible above-the-line for medical, dental, vision for you, spouse, and dependents.
Malpractice / Liability Insurance
$3,000 - $15,000Fully deductible as business expense if you carry your own tail coverage.
CME / Conferences / Medical Journals
$1,000 - $5,000Fully deductible including registration, travel, lodging, and meals (50% for meals).
Medical Licenses & DEA Registration
$500 - $3,000State medical licenses, DEA, board certification fees, society dues.
Travel Expenses (Locum Assignments)
$5,000 - $20,000Airfare, rental cars, mileage ($0.70/mile in 2026), lodging, and meals (50%) while on assignment.
Home Office Deduction
$500 - $5,000Simplified: $5/sq ft up to 300 sq ft ($1,500). Regular method: actual expenses prorated by square footage.
Business Cell Phone & Internet
$500 - $2,000Deduct business-use percentage of phone bill, internet, and computer equipment.
Qualified Business Income (QBI) Deduction
$5,000 - $20,000+23% deduction on qualified business income under Section 199A (increased from 20% by OBBBA). Income limits apply for physicians (SSTB).
SE Tax Deduction (50%)
$5,000 - $12,000Deduct 50% of self-employment tax as an above-the-line adjustment. Automatic on Schedule SE.
Business Equipment & Supplies
$500 - $5,000Medical equipment, scrubs, stethoscope, laptop, software. Section 179 or bonus depreciation.
Professional Development & Books
$300 - $2,000Textbooks, UpToDate subscription, board prep courses, medical apps.
Accounting & Legal Fees
$2,000 - $8,000CPA fees, tax preparation, bookkeeping, legal consultations for your practice.
S-Corp Specific Deductions
Additional deductions when operating through an S-Corporation election
Self-Employment Tax Savings (Distributions)
$10,000 - $30,000+Distributions above reasonable salary avoid 15.3% SE tax. The core S-Corp benefit.
Accountable Plan Reimbursements
$3,000 - $10,000Reimburse yourself tax-free for home office, cell phone, internet, mileage, and more through an accountable plan.
Health Insurance (S-Corp Shareholder)
$3,000 - $8,000Reported on W-2 Box 1 but deductible on personal return. Avoids FICA when structured correctly.
Retirement Plan (Employer Match)
$10,000 - $25,000S-Corp can make 25% employer profit-sharing contribution to Solo 401(k). Reduces corp taxable income.
Reasonable Compensation Planning
$5,000 - $20,000Setting salary at defensible level maximizes distribution (non-SE) income. Requires compensation study.
Augusta Rule (Section 280A)
$2,000 - $10,000Rent your personal home to your S-Corp for up to 14 days/year tax-free. Must be at fair market rate.
Business Vehicle Deduction
$3,000 - $10,000S-Corp can own or reimburse vehicle expenses. Actual method or standard mileage through accountable plan.
Family Employment
$2,000 - $12,000Employ spouse or children (14+ for FICA exemption rules). Shift income to lower brackets.
Real Estate Tax Deductions
Deductions for physician real estate investors (rental properties, STR loophole)
Depreciation (MACRS / Cost Segregation)
$10,000 - $100,000+Residential: 27.5 years. Cost segregation accelerates to 5-15 year components. Creates massive paper losses.
Short-Term Rental (STR) Loophole
$20,000 - $80,000+Average stay < 7 days + material participation = losses offset W-2 income. Not limited by passive activity rules.
Mortgage Interest on Rental Property
$5,000 - $30,000Fully deductible against rental income (no $750k cap like personal residence).
Property Taxes (Rental)
$3,000 - $15,000Fully deductible against rental income. Not subject to the personal SALT cap.
Repairs & Maintenance
$2,000 - $10,000Immediate deduction for ordinary repairs. Improvements must be capitalized and depreciated.
Property Management Fees
$2,000 - $8,000Typically 8-12% of gross rent. Fully deductible. Required for passive investors.
Travel to Rental Properties
$1,000 - $5,000Mileage, flights, lodging for property inspection, tenant management, and maintenance oversight.
1031 Exchange (Tax Deferral)
$20,000 - $200,000+Defer capital gains indefinitely by exchanging into like-kind property. Step-up basis at death.
Real Estate Professional Status (REPS)
$20,000 - $100,000+Spouse qualifies with 750+ hours. Converts all rental losses from passive to active, offsetting W-2 income.
Insurance Premiums
$1,000 - $5,000Landlord insurance, umbrella policies, and flood insurance on rental properties.
Ready to Find Your Missing Deductions?
This checklist is a starting point. Every physician's tax situation is different. A 30-minute strategy call will identify which unchecked deductions apply to your specific circumstances — and how much they could save you.
Download the Full PDF Checklist
Get a printable version of this checklist with space for notes, applicable tax forms, and deadline reminders. Bring it to your CPA or your Taxstra strategy call.
Physician Tax Deduction FAQ
Common questions about physician tax deductions and write-offs.
Stop Leaving Money on the Table.
The average physician overpays $20,000 - $50,000 in taxes every year. This checklist is Step 1. A strategy call is Step 2.
No obligation. No sales pitch. Just a tax plan built for physicians.