With April 15 in the rear view mirror, you’re probably finished thinking about taxes for this year, but should you be?
Because taxes are a year-round concern for independent contractors, like locum tenens, now is actually the best time to plan for next year—while the pain of filing this year’s return is still fresh. With that in mind, here are a few tips that can help you get ahead of the game for 2010.
Get Organized. The return that you just filed is probably your best guide to the documentation that you’ll require next year. Review your 2009 return and outline everything that you need to set aside and document for 2010—travel receipts, work expenses, records of charitable donations, etc. Use notebooks, file folders or whatever works for you to create some sort of organization structure that will help you keep track of your paperwork year round.
Track Expenses. Many independent contractors under itemize. Remedy that in 2010 by carefully tracking everything related to your business from your stethoscope and professional journal subscriptions to your health insurance costs and your cell phone bill. When in doubt about what’s deductible, save the documentation and have your tax professional sort it out for you.
Pay Estimated Taxes. First-time locum tenens may not understand the importance of making quarterly estimated tax payments. But the bottom-line is, failure to make estimated payments may result in a penalty. Don’t wait on this. Work with your tax professional or accountant now to determine how much of your pay you should set aside in reserve—and to determine a payment schedule for quarterly taxes.
Take these simple steps and you will save time and money next year.
