Comments on: The Effects of Tax Law Reform on Physicians and Other High Income Individuals

By: The Government Doesn't Want you to Work (Too Much) - The Happy Philosopher

The Government Doesn't Want you to Work (Too Much) - The Happy Philosopher — Tue, 16 Apr 2019 01:51:32 +0000

[…] over blog-posts and fancier articles to try and figure out the impact it would have on me. I even wrote my own simplistic, yet awesome analysis. I figured I would save a small amount of money due to the lower tax brackets across the board, but […]

By: DadsDollarsDebts

DadsDollarsDebts — Sat, 06 Jan 2018 15:23:35 +0000

How did I miss this article. Nicely said.

As for me, my home burned and we are now renting with no plans to buy. When we buy we will downsize (problem solved). If we rebuild we will sell the new home.

As for taxes, California does get screwed and I am not sure a work around on this one except to move elsewhere…we will see what happens. Not out of the possibilities in life.

Otherwise, I doubt I will form a passthrough entity making that much money, but I have debated locums as a work around to my desire to have time off and travel with my family.

So life will see. For now, I am trying to make the right moves with the insurance money to maximize my freedom going forward.

By: The Physician Philosopher

The Physician Philosopher — Thu, 28 Dec 2017 16:14:45 +0000

Thanks for your thoughts on this tough subject! The bill is a tough read, but you have written it in a digestible form. I think one other big benefit is that that AMT is likely to hit less high income earners and, even if it does, to less of an extent than it used to.

With three kids, it’s going to be important to try and stay under that 400k number unless I am going to make well above that and make the loss of the child credit worth it. Saves me 6k in taxes (2k per kid).

By: Ryan

Ryan — Wed, 27 Dec 2017 20:17:06 +0000

I was excited about the possibility of PSCs but have recently learned that “health” industry is excluded from these. What other private business or corporate loopholes are there for physicians?

By: TheHappyPhilosopher

TheHappyPhilosopher — Wed, 27 Dec 2017 01:54:57 +0000

In reply to hatton1. This has been a pretty long bull market. I can’t imagine it going on much longer…but maybe this time is different

By: TheHappyPhilosopher

TheHappyPhilosopher — Wed, 27 Dec 2017 01:53:05 +0000

In reply to Smart Money MD. The ironic thing about physician jobs is that in the LCOL areas the salaries tend to be the highest. It's crazy economics.

By: TheHappyPhilosopher

TheHappyPhilosopher — Wed, 27 Dec 2017 01:50:26 +0000

In reply to Physician on FIRE. Sounds like we are in similar tax environments. Most of my tax savings will be from child tax credit, AMT going away and the 24% bracket as well.

By: hatton1

hatton1 — Tue, 26 Dec 2017 15:07:39 +0000

I agree with you that the biggest benefit that I see is the lowering of the corporate tax to 11%. I think this will continue to fuel the stock market rally at least I hope so.

By: Smart Money MD

Smart Money MD — Tue, 26 Dec 2017 04:13:04 +0000

Great outline. I’ve weighed the pros/cons of moving to a LCOL area, the implications of finding a similar/better job, and ease of access to airports. It’s not an easy decision, as the more frequently you change jobs, the more frequently you and your family has to restart your lives. The toughest part is to figure out whether a financial gain would translate easier to a better quality of life.

Merry Christmas!

By: Physician on FIRE

Physician on FIRE — Tue, 26 Dec 2017 02:57:11 +0000

Thanks for the overview in simple terms. It’s easy to get lost in the details, but you’ve outlined the key points and listed some actionable items.

I do live in a high-income tax state, but under the old tax code, I was paying the AMT, anyway, so I never got to deduct those state income taxes, anyway. The biggest benefit I expect to see is from the child tax credit, which will be new to me (even though my oldest turns 10 next year) and dropping from the 33% to the 24% marginal tax bracket. I’ll also be taking the standard deduction after years of itemizing. I wish I had more time to go through the house and find stuff to donate before the end of the year, but we’re visiting family out of state until the 31st.

Thank you for mentioning my post, and Merry Christmas and your Happy family!
-PoF