Filing Your Tax Return: Tips and A Checklist
- Nisha Mehta, MD
- Mar 26
- 11 min read
Pulling together your records to file your tax return can often feel like a jigsaw puzzle missing some key pieces, especially if you’ve started a new job or side gig and have new types of income that expand the complexity of your return. Since most of us don’t have the time or the interest in learning much about accounting, we’ve compiled a checklist of tips below to help doctors prepare and file their annual tax return, or hand over their taxes to their accountant. We also cover tips on how to legally minimize your tax bill while maintaining appropriate documentation and staying compliant with IRS regulations. All of these things will hopefully reduce your audit risk or chance of having to pay large penalties or fees.
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Know the current tax return filing deadlines
The IRS levies hefty fines and penalties for late tax filings and payments, so make sure you know the tax filing deadlines that apply to your situation.
The most common one is the deadline for personal tax returns. The IRS started processing returns in late January 2025 for the 2024 tax year. 2024 personal tax returns are due by Tuesday, April 15th, 2025.
If you run a private practice or small business, or have a household employee, other deadlines may also apply, such as:
1099-NEC or 1099-MISC filing deadline: January 31, 2025
W2 and W3 filing deadline: January 31, 2025
Schedule K-1s/Small business filing as partnership or S corporation: Due March 15, 2025 or the third month after the end of the company’s fiscal year (can be extended to September 15th)
Some physicians, especially those who receive Schedule K-1s from real estate or businesses, may not have all their records together in time to file their tax return. In this situation, your personal tax return can be extended. By extending your tax filing date, you can extend the April 15th deadline to October 15th.Â
It’s important to note, however, that your tax payment is still due on the April 15th tax deadline, even if you file an extension. Pay these to avoid penalties.Â
Extending your tax return filing deadline
If you need to extend your tax return, you must complete and file Form 4868 by the original tax filing deadline.
In Form 4868, you will have to estimate your tax liability for the year and compare it to tax payments you’ve made. If you have a balance due, you will need to make this payment along with your Form 4868 filing.
Do not wait until the last minute to pull together your records, even if you’re planning on extending your return or your accountant has told you you will need to extend. Since you will still need to pay any remaining tax obligation to avoid penalties later, you will still want to have a rough idea of your tax situation.
Extensions provided for disaster relief
In extenuating circumstances, such as natural disasters, the IRS may choose to extend the filing deadline for people impacted. In this specific case, the tax payment deadline may also be extended. You can check the IRS website for current tax relief eligibility for disaster situations. If you experienced hardship due to a disaster that is included on their list, you may automatically receive an extension (check the IRS guidance).
In other situations, you may be able to apply for a related extension. And you may also be able to deduct some of your expenses related to a natural disaster.
Know your local filing requirements
Along with your federal income tax return, you may need to file a state income tax return if you are subject to state and/or local income taxes. Many tax preparation programs will automatically prepare your state income tax return from your federal return if required, but it doesn’t hurt to double check! Failure to file state returns can also subject you to fees and penalties.
Don’t forget to make your estimated tax payment
Along with owing any outstanding taxes by the tax filing deadline, physicians who make quarterly estimated tax payments should also remember to make any required quarter payments while they are working on their previous year’s return. For 2025, the estimated tax due dates are:
Earnings Period | Estimated Taxes Due By |
September 1 to December 31, 2024 | January 15, 2025 |
January 1 to March 31, 2025 | April 15, 2025 |
April 1 to May 31, 2025 | June 16, 2025 |
June 1 to August 31, 2025 | September 15, 2025 |
Learn more about what physicians need to know about quarterly estimated taxes.
Pull together your information and organize your records for the year
As you prepare to file your tax return, you’ll want to make sure you have accurate records. If you use a paid preparer, your accountant will need these records to prepare your return. The more organized your records, the easier your return will be to prepare, which can save you a lot of money on your tax preparation. Additionally, this will avoid mistakes on your return because your accountant wasn't aware of things that you did that could result in tax deductions or tax liabilities, or that require extra forms or documentation. Common examples of things that you will want to tell an accountant about include:
New real estate investments or losses
If you did a backdoor Roth or contributed to an HSA
All bank accounts and investment accounts, including tax statements related to dividends or interest
Any major life changes that may affect taxes, such as a move, adding a dependent, change in job, marriage or divorce, inheritance, etc
Addition of a new side gig or start of a new business (even if it generated no income)
If you superfunded your 529.
If you file your own taxes, you will need these documents for your own leg work.
Regardless of who prepares the return, you will want to keep your records on file for several years after your filing date in case of an audit.
Below is a list of common records physicians may need to pull together for their tax return, depending on their situation.
Personal Information:
Social security number (SSN) or taxpayer identification number (TIN)
Spouse’s personal information, if applicable
Personal information for dependents, if applicable
Banking information for refund or payment if doing an electronic payment
Your identity protection PIN for the IRS, if applicable
Potential Income Documents:
W-2 forms (if employed)
1099 forms (if self-employed or an independent contractor)
1099-DIV forms (for any taxable investment accounts)
1099-B forms (for any taxable investment proceeds from sales)
1099-INT forms (for any taxable interest income, such as your emergency fund HYSA)
K-1 forms (for partnerships or S-corps)
Rental income (for physicians investing in real estate)
Other income, such as invoices (if self-employed)
1099-R forms (for retired physicians)
There are other potential income sources that aren’t as common, such as gambling winnings and canceled debt. If you’re afraid you might be missing some potential sources of income as you pull together your records, check with a qualified tax professional who can help guide you.
If you’re self-employed or run a small business, make sure you close out your year-end accounting before you finalize your tax records for the year to avoid issues with having to file an amended return down the road.
Payment History:
Confirm any refunds rolled over and applied from the previous year’s return
Collect records of quarterly estimated tax payments made
Along with your income statements and payment history, you will also want to pull together any receipts or proof of eligibility for potential tax credits and tax deductions. We cover some common ones for physicians below.
Learn more about tax credits versus tax deductions with our physician’s guide to understanding taxes.
Other records you may want to have handy as you file your tax return include:
Contributions and distributions (including rollovers) of retirement accounts
Contributions and distributions for HSAs and FSAs: We love HSAs because you make tax free contributions, accounts grow tax free, and you can use the funds tax free for qualified medical expenses. If you contribute to an HSA plan through your employer, your HSA contributions should be included in your W2. Make sure to include this when preparing your tax return. Deductions for eligible plans outside an employer-sponsored plan can also apply, and FSA contributions are also paid in pretax dollars to reduce your taxable income. Learn more about health savings accounts.
Make sure you keep personal and business records separate
Along with closing out your business accounting records for the year, self-employed physicians and small business owners will want to ensure that they keep their personal and business records separate. Not only will this help you with double checking to make sure you’ve taken all potential deductions for your business expenses, but it will help ensure you don’t accidentally deduct personal expenses that don’t qualify.
Double check for potential tax deductions
As you prepare your tax return, you’ll want to (legally!) minimize the amount of taxes you owe. Every physician will either be able to take the standard tax deduction or itemize certain expenses for their personal tax return, but there are additional tax deductions you may be able to take even with the standard deduction.
Tax preparation software often includes a refund optimizer, but these programs can never understand your personal situation and what deductions you might qualify for as well as you can.
Expenses to track for itemizing a deduction include:
Medical and dental expenses (and related mileage)
Interest paid on your mortgage
Charitable contributions (and related charitable mileage)
Casualty and theft losses, including natural disasters
State and local taxes paid (including property, income, and sale taxes)
Other potential tax deductions physicians may qualify for include:
Student loan interest deduction: Some student loan interest can be tax deductible even if you don’t itemize. As of 2025, you may be able to deduct up to $2,500 in student loan interest paid
CME expenses (cost of courses, travels, materials, etc.)
Professional memberships and licensing fees
Malpractice insurance premiums
Medical supplies
Technology expenses
Rental expenses and depreciation
Other business expenses such as payroll and overhead expenses
Explore common tax deductions for physicians:
If you’re a W2 employee physician, you will have less opportunities to reduce your taxable income, but some still exist, especially if you invest in real estate.
Explore:
Self-employed physicians and small business owners can check out our side gig finances for self-employed income for common expenses to keep track of to deduct.
Take advantage of any potential tax credits as well
Along with tax deductions, which reduce your taxable income, there are tax credits, which reduce your tax bill dollar for dollar. These can have an even greater impact on your tax bill than tax deductions, so they’re worth double checking as you prepare your tax return. If there are any income thresholds to qualify, take note of those too.
Common tax credits that may apply to doctors or medical students include:
Child tax credit
American opportunity credit or the lifetime learning credit
Residential energy tax credits (for energy-efficient home upgrades)
Electric vehicle tax credits
Keep up to date with changes in the tax law
Tax laws are continually changing. Each year, for example, the IRS assesses inflation and determines whether they will change the income limits for the marginal tax brackets and contribution limits to retirement plans.
Tax credits and tax deductions can also change. For example, what can be deducted as meals and entertainment for businesses, as well as what percentage of those expenses can be deducted, has changed several times over the past decade. The rate at which mileage can be deducted also typically changes once or twice a year to keep up with inflation.
An accountant can help you stay up to date with changes in the law, but if you self-prepare your return, you’ll want to make sure you know the latest changes.
Analyze if you will be filing your tax return jointly or separately
If you’re married, you have the option to file your personal tax return jointly or to file married filing separately. It’s typically better to file jointly when married, as this usually leads to the lowest tax bill and provides better contribution limits and less restrictions for some tax-advantaged retirement savings. Filing separately can also cause you to lose the ability to deduct student loan interest and to take advantage of certain tax credits.
There are a few cases, however, when it may be beneficial to file separately, such as:
You and/or your spouse is on an income-driven student loan repayment plan (IDR)
You and/or your spouse owes back taxes
You and/or your spouse owns a small business taxed as a pass-through entity and eligibility for the QBI deduction may change depending on your filing status
Tax preparation software can often run this analysis for you to help you optimize your filing status, but if you have a more complex situation, we recommend checking with an accountant.
Make any final contributions to your IRA or HSA
We recommend as part of our year end financial checklist for doctors buttoning up your contributions to tax-advantaged retirement accounts such as your IRA and HSA and completing your Backdoor Roth IRA by the end of the year. If you haven’t finished this part of your financial planning for last year yet, there may still be a chance to make contributions to your accounts before you file your tax return for last year.
Rules around this can get a little tricky, and you want to make sure you properly classify the contributions for the previous year so you don’t accidentally overfund for the current year. We recommend working with your accountant in this situation, and then adjusting your contributions in the future to make your full contributions before the calendar year ends.
Start planning ahead for next year
Pulling together your tax return can be a time consuming process, especially if you own a private practice or other business. Planning ahead and getting organized can help save you time (and money) for next year’s tax return. As you wrap up this tax season, take note of what took the longest to prepare and pull together. See if you can put a new system in place now for better tracking in the future. For example, you may want to put together a spreadsheet for tracking your tax deductible business related expenses. Or you may want to get new software in place to help automate the tracking of all your business income and expenses as your side gig grows.
Some tools that might help:
Quicken offers a range of different personal and business finance tools, from personal finance managers to more complex features include Schedule C and P&L reports, as well as cash flow tracking. It can help you manage your self-employed finances seamlessly with your real estate and personal finances. PSG members receive 50% off Quicken's entire suite of products through our affiliate link.
Quickbooks - If you have a highly complex situation and need a more robust solution, we've partnered to offer PSG members an exclusive 30% off discount using our affiliate link for QuickBooks Online services for their first 6 months. (See their website for full discount details and any exclusions.)
Putting together a comprehensive tax strategy or financial plan can help optimize your taxes for the current year as well.
Explore related resources:
Conclusion
Preparing your taxes can be stressful. We hope the tips above will help you navigate the process better, while saving you money on your tax preparation fees (which can also be tax deducible!).
Tax law can be complicated and laws are continually changing, both locally and at the federal level. Unless you have a very simple return or are well versed in tax law, we highly recommend working with a qualified tax professional to prepare your taxes so you don’t run into issues with your tax return filing or miss beneficial tax deductions or credits that could lower your tax bill for the year.
Additional tax resources for physicians
Explore related PSG resources: