I am a fellow and just started moonlighting in the same hospital. I got my usual fellowship salary and moonlighting salary in the same paycheck and (by rough estimate) was taxed almost the same on both the incomes. I live in NYC, so my taxes are almost 45%. I have not enrolled in any 401k yet. With fellows salary and expenses, it was not feasible for me to do so.
To give a bit of the background, I got married last year (although we could have filed the tax return jointly last year, we didn't). I changed my W2 from to 'married' status this year and I intend to file jointly from now on. My wife is also a physician, but currently is in another state. We are also expecting a baby in few months.
I will really appreciate some advice for financial planning and how can I maximize my tax returns. I read online from forums and sites, that setting up a single member LLC for moonlighting might help, however since I am moonlighting in the same hospital, i don't have any travel or other expenses. I am planning to do few shifts a month such that the pre-tax income from moonlighting will be around 6-7k/month? Is opening up an LLC worth then? In total, mine and my wife's joint salary will be in the $153,101 to $233,350 (28%) bracket.
Thanks so much!
To give a bit of the background, I got married last year (although we could have filed the tax return jointly last year, we didn't). I changed my W2 from to 'married' status this year and I intend to file jointly from now on. My wife is also a physician, but currently is in another state. We are also expecting a baby in few months.
I will really appreciate some advice for financial planning and how can I maximize my tax returns. I read online from forums and sites, that setting up a single member LLC for moonlighting might help, however since I am moonlighting in the same hospital, i don't have any travel or other expenses. I am planning to do few shifts a month such that the pre-tax income from moonlighting will be around 6-7k/month? Is opening up an LLC worth then? In total, mine and my wife's joint salary will be in the $153,101 to $233,350 (28%) bracket.
Thanks so much!
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