I am a non-partner in my practice and receive close to 7 figures of W2 income annually. This is a relatively recent significant change after leaving academics for a pp opportunity. I'm just unsure how to manage that income and minimize my tax liability. Any advice?
I contribute maximum to my employer-matched 401k. I do the Roth for my wife and myself. Both my wife and I have a small amount of 1099 income with side hustles. Our 1099 income is pretty easily deducted down to $0 after expenses.
I've considered changing my relationship with my practice to 1099 instead of W2, but they aren't real open to that idea. I could probably push harder to make it happen, but my accountant also made it sound like I'd only maybe save a few grand a year and have a much bigger paperwork job, which I'm not sure is worth it.
I'm not a partner by choice. My practice has more debt than I'm comfortable with and there would be more work involved than I'm interested in..I got out of academics for a reason!
Anyway, I'm probably just stuck paying the piper, but with all the smart people on here, thought I'd put myself out for advice.
I contribute maximum to my employer-matched 401k. I do the Roth for my wife and myself. Both my wife and I have a small amount of 1099 income with side hustles. Our 1099 income is pretty easily deducted down to $0 after expenses.
I've considered changing my relationship with my practice to 1099 instead of W2, but they aren't real open to that idea. I could probably push harder to make it happen, but my accountant also made it sound like I'd only maybe save a few grand a year and have a much bigger paperwork job, which I'm not sure is worth it.
I'm not a partner by choice. My practice has more debt than I'm comfortable with and there would be more work involved than I'm interested in..I got out of academics for a reason!
Anyway, I'm probably just stuck paying the piper, but with all the smart people on here, thought I'd put myself out for advice.
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