Deductions for Medical Professionals

If you work in the medical field, this list of possible deductions is a must have for ensuring you’re deducting all you can on your taxes as well as some examples of items that qualify for in each deduction category. For additional guidance on what you could be deducting, call us and set up an appointment today!

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Gross receipts from sales and/or services​

  • Receipts for sales and services including consulting and coaching

Other Income

  • Income from ownership in another business (K1 forms) interest on bank accounts or loans made to someone else



  • ​Software programs for accounting and payroll, bookkeeping, tax preparation, and phone apps


  • Ads in yellow pages, magazines, Internet, business cards, flyers, printing, social media, etc.

Bad Debt

  • Money loaned or invested that there is no hope of recapturing

Bank Charges

  • Fees charged by banks to maintain an account, wire fees, ATM withdraw, or other bank services

Children Paid

  • Money paid to children for helping with such things as delivering flyers and/ or product, stuffing envelopes, cleaning office and/or car, modeling. Must keep a detailed log of tasks and how paid.

Commissions/ Contract Labor

  • Services for medical staff, technicians, message therapists, sales team that are not employees on payroll, etc. You must issue a form 1099 MISC to any individual that is paid over $600 in a year.

Computer, Internet, and Tech

  • Software, Online services, Internet expense, computer maintenance

Continuing Educational

  • Seminars, training, coaching, consulting, reference materials, professional development, etc.

Costs of Goods Sold

  • Nutritional supplements, medical equipment, or anything else purchased for resale

Dues and Subscriptions

  • Professional and association dues and magazines

Employee Costs

  • Board and staff meetings, training, educating employees, and employee benefit programs

    Equipment Leased

    • Payments on equipment you lease for business such as X-ray equipment, office copier, etc.

    Equipment Purchased

    • Office equipment, medical equipment, furniture, machines, etc. that cost over $500


      • Gifts to clients, employees, and associates limited to $25 per person per year

      Home Office

      • A separate room in your home to do business and accounting. A percentage of utility bills, home owners or renters insurance, property tax, mortgage interest, refinance fees, repairs and maintenance, cleaning supplies, office decor, etc may be taken. It is determined by square footage of office space vs square footage of the entire house


      • Liability, malpractice, building, health, offered to all employees, key man life


      • Mortgage interest on a office building and interest on loans and credit cards

      Janitorial Expense

      • Costs for an individual or company to clean office space, shop space, and grounds, Cleaning supplies, carpet cleaning, window cleaning etc.

      Laundry and Cleaning

      • Cleaning of uniforms, towels, lab coats, etc.

      Legal and Professional Services

      • Attorneys, electronic billing, accountants, consultants, lab services, X-ray services, etc.


      • Professional license, city license, and state licenses etc.


        • Meals with clients, employees, potential clients, and associates. Note: entertainment is no longer deductible

        Merchant Fees

        • Credit card convenience fees to take payments by credit card such as merchant services Square, PayPal, etc.


        • There are two ways to take a vehicle expense. If you choose mileage, you take the mileage used when picking up product, supplies, office supplies, meetings, handing out advertising or business cards, meals with clients, etc. The second option is Vehicle (see Vehicle deduction).

        Office Expense other than consumables

        • Office supplies, computer supplies, Internet, postage, phone apps, beverage services

        Office Space Rent

        • Rent for a separate office outside your home, rental fees for equipment booths for shows, technical equipment, storage of equipment, and records

        Officer Wages

        • The IRS law states that an officer (owner) of a corporation, must be paid a reasonable wage for services rendered to the company. They mus be paid with a W-2 just like all employees. Take an owner draw for the rest.


        • Brochures, forms, signs, etc.


        • Any equipment, office furniture, computers, vehicles that cost over $500


        • Repairs to equipment such as computers, office equipment, non-office equipment, buildings, etc.

        Research and Development

        • Cost to create or improve products or services. Includes materials, labor, and education

        Returns and Allowances

        • Money refunded for returned products or services, discounts given and rebates on sales


        • Cameras, alarm systems, guard dogs, or anything used to protect property

        Startup Costs

        • Costs you incur before you open the doors for business, such as setting up accounts, research, advertising, etc. Limited to $5000 in one year


        • Medical supplies and other things you use to treat patients


        • Payroll, sales, and other business taxes in your area


        • Office phone, cell phone, conference lines, extra phone lines into home for business, fax, Internet


        • Small tools that last less than three years


        • Hotels, airfare, cab fare (ex. Uber or Lyft), public transit, parking, cleaning while away from home, business trip log, bus, train, etc.


        • Scrubs, lab coats, shirts with your company name or logo, protective clothing, etc.


        • Electricity, gas, water, sewer, trash, HOA fees for office, shop or any other facility. See Home Office deduction for deductibility of home utilities


        • There are two ways to take a vehicle expense. If you choose vehicle, you take the expense using the vehicle: fuel, parts, mechanics, oil changes, car washes, insurance, etc. Along with taking the vehicle expense you can also depreciate the vehicle. Note that unless the vehicle is used solely for the business you must track business use vs. personal use. The second option is Mileage (see Mileage deduction).


        • Salaries, wages, bonuses, and commissions paid to employees. An Employee is an individual who an employer controls where, when, and how the work is done, hours worked and use of equipment.

        Website Expense

        • Internet hosting and services, website design, and maintenance
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