LocumLife - March 2009 - (Page 9) SCHEDULE C INCOME AND DEDUCTIONS Schedule C is used to report income from self-employment activity as independent contractors. This form also is used to deduct certain business expenses. In order to take advantage of deductions as a locum tenens physician, keep good records of expenses, travel, and other business-related expenditures. Reimbursements, such as airfare, made by locum tenens staffing companies are not deductible on Schedule C. However, expenses for which staffing companies do not reimburse may be deducted. These include items like meals, laundry, and tips incurred by you during temporary engagements. Per-diem rates—set according to the location where locum tenens services are provided—can be found at www.gsa.gov and are arranged by state and city. (Note: These tables cannot be used for lodging.) A few other examples of deductions for Schedule C income may include lab coats and their laundering fees, specialty devices used in the practice of medicine (such as books or stethoscopes), and any fees paid by you for such essentials as state licenses, DEA licenses, and continuing medical education. SAGE ADVICE While there are many resources available on the Internet that offer information about tax issues related to self-employment, it is always worthwhile to seek the assistance of an expert tax professional who is familiar with the locum tenens industry. He or she should be able to assist you in determining the most advantageous route for deductions, credits, and investments, while maximizing opportunities to alter your tax liability. LL Special thanks to Joseph Smith, RRT, EA, enrolled agent and owner of TravelTax LLC (www.TravelTax.com), based in Norfolk, Nebraska, for reviewing this article. Christopher Robinson, MD, is an assistant professor, Division of Maternal Fetal Medicine at the Medical University of South Carolina in Charleston. FOR MORE INFORMATION Internal Revenue Service www.irs.gov U.S. General Services Administration www.gsa.gov Money Matters archives http://locumlife.modernmedicine.com/Money+ Matters+for+Locum+Tenens+Providers LocumLife 9 MARCH 2009 Interested? Circle #609 or go to www.locumlife.com/readerservice http://www.gsa.gov http://www.TravelTax.com http://www.irs.gov http://www.StaffCare.com http://www.gsa.gov http://www.StaffCare.com http://locumlife.modernmedicine.com/Money+Matters+for+Locum+Tenens+Providers http://www.locumlife.com/readerservice
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