Self-employment tax shock, SEP-IRA strategies, and malpractice deductions — the tax guide every locum physician must read.
Locum physicians earn high incomes and face high tax rates — but also have the most powerful deductions available.
Often $5,000–$50,000/year. At a 35% effective rate, a $20,000 premium saves $7,000 in taxes.
Contribute up to 25% of net income, max $66,000. At 35% rate, $66,000 contribution saves $23,100 in taxes.
DEA registration and renewal fees are required for practice — fully deductible.
License fees in every state where you practice. Multi-state locums may have 5–10 licenses/year.
Flights, hotels, and registration fees for continuing medical education. Often $5,000–$15,000/year.
Stethoscopes, diagnostic tools, and medical supplies you purchase yourself.
UpToDate, medical journals, clinical decision tools — 100% deductible professional expenses.
Work-specific medical attire not worn outside clinical settings.
Flights and hotels to temporary assignments are deductible when your tax home is elsewhere.
CPA fees for complex multi-state returns, entity formation, and tax planning — all deductible.
This is the single biggest tax mistake locum doctors make. A $66,000 SEP-IRA contribution at a 35% rate saves $23,100 per year. Open one the day you start locum work.
If you travel without a permanent tax home, your housing allowances and per diem become taxable — potentially adding $30,000+ to your tax bill.
Multi-state locums pay thousands in license fees. Every single state license renewal is deductible.
Employed physicians pay 1.45% Medicare tax. Locums pay 15.3% SE tax on all net income. The jump is shocking — plan for it.
Get instant answers specific to Locum Doctors — stipends, deductions, deadlines. Real dollar amounts, not vague advice.
Log income and expenses in seconds. Know exactly what you owe each quarter — no surprises at tax time.
Email reminders before every quarterly deadline with your exact payment amount. No more IRS penalties.
Locum physicians pay self-employment tax (15.3%) on top of income tax, with no employer to share the burden. At $300K income, SE tax alone can be $20,000+.
Up to 25% of net self-employment income, maximum $66,000 in 2026. You can open and contribute until your tax filing deadline (including extensions).
Yes, if you maintain a legitimate tax home. Flights, hotels, and per diem to temporary assignments (under 1 year) are deductible business travel.
At high income levels, an S-Corp can save $10,000–$20,000/year in SE tax. However, professional medical corporations have state-specific rules. Consult a physician-specialized CPA.
Estimate 35–45% of net income for federal taxes combined. Set aside this percentage and pay quarterly to avoid penalties.
Ask anything about deductions, deadlines, or quarterly taxes. Get specific dollar amounts — not generic advice.
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