• DVM360_Conference_Charlotte,NC_banner
  • ACVCACVC
  • DVM 360
  • Fetch DVM 360Fetch DVM 360
DVM 360
dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care
dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care
By Role
AssociatesOwnersPractice ManagerStudentsTechnicians
Subscriptions
dvm360 Newsletterdvm360 Magazine
News
All News
Association
Breaking News
Conference Coverage
Education
Equine
FDA
Law & Ethics
Market Trends
Medical
Politics
Products
Recalls
Regulatory
Digital Media
dvm360 LIVE!™
Expert Interviews
The Vet Blast Podcast
Medical World News
Pet Connections
The Dilemma Live
Vet Perspectives™
Weekly Newscast
dvm360 Insights™
Publications
All Publications
dvm360
Firstline
Supplements
Vetted
Clinical
All Clinical
Anesthesia
Animal Welfare
Behavior
Cardiology
CBD in Pets
Dentistry
Dermatology
Diabetes
Emergency & Critical Care
Endocrinology
Equine Medicine
Exotic Animal Medicine
Feline Medicine
Gastroenterology
Imaging
Infectious Diseases
Integrative Medicine
Nutrition
Oncology
Ophthalmology
Orthopedics
Pain Management
Parasitology
Pharmacy
Surgery
Toxicology
Urology & Nephrology
Virtual Care
Business
All Business
Business & Personal Finance
Hospital Design
Personnel Management
Practice Finances
Practice Operations
Wellbeing & Lifestyle
Continuing Education
Conferences
Conference Listing
Conference Proceedings
Resources
CBD in Pets
CE Requirements by State
Contests
Veterinary Heroes
Partners
Spotlight Series
Team Meeting in a Box
Toolkit
Top Recommended Veterinary Products
Vet to Vet
  • Contact Us
  • Fetch DVM360 Conference
  • Terms and Conditions
  • Privacy
  • Do Not Sell My Information
  • About Us

© 2023 MJH Life Sciences and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.

Advertisement
By Role
  • Associates
  • Owners
  • Practice Manager
  • Students
  • Technicians
Subscriptions
  • dvm360 Newsletter
  • dvm360 Magazine
  • Contact Us
  • Fetch DVM360 Conference
  • Terms and Conditions
  • Privacy
  • Do Not Sell My Information
  • About Us
  • MJHLS Brand Logo

© 2023 MJH Life Sciences™ and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.

Tax rules for relief veterinarians

February 1, 2006
Gary I. Glassman, CPA

Relief veterinarians are typically treated as independent contractors responsible for their own income taxes and the reporting of their earnings and expenses. And most relief veterinarians conduct their practice activity as sole proprietors. Based on this, you'd report net income or loss from your relief practice on your personal income tax return. There are several important rules you should be aware of, however.

Relief veterinarians are typically treated as independent contractors responsible for their own income taxes and the reporting of their earnings and expenses. And most relief veterinarians conduct their practice activity as sole proprietors. Based on this, you'd report net income or loss from your relief practice on your personal income tax return. There are several important rules you should be aware of, however.

For income tax purposes, you'll report your income and expenses on Schedule C of your Form 1040. The net income will be taxable to you regardless of whether you withdraw cash from the practice.

If you perform management or administrative tasks from a home office, you may be entitled to deduct an allocable portion of certain costs of maintaining your home. And if you have a home office, you may be able to convert nondeductible commuting expenses (from home to work) into deductible transportation expenses.

Advertisement

You will also be required to pay self-employment taxes at a rate of 15.3 percent on your net earnings from self-employment of up to $94,200 for 2006, and at a rate of 2.9 percent on the excess. One-half of your self-employment taxes will be deductible as a trade or business expense.

You will be allowed to deduct 100 percent of your health insurance costs as a trade or business expense. This means your deduction for medical care insurance won't be limited by the normal 7.5 percent-of-AGI floor on itemized medical expenses.

Your income won't be subject to withholding tax, but you'll be required to pay estimated taxes quarterly to both state and federal governments. These are due on April 15, June 15, Sept. 15, and Jan. 15 of the following year. Not making estimated payments will result in underpayment penalties.

You'll also have to maintain complete records of income and expenses. I recommend using a computer accounting or checkbook program to assist you. Pay attention to recording expenses so you can take the full amount of deductions you're entitled to. Certain types of expenses, such as car, travel, entertainment, meals, and home-office expenses are subject to special record-keeping requirements or limitations on their deductibility and require special attention.

Always seek tax counsel before starting your own relief practice and don't wait until tax time to get the proper advice. Start when you begin to offer relief services.

Gary I. Glassman, CPA, is a partner with Burzenski and Co. PC in East Haven, Conn., and a Veterinary Economics Editorial Advisory Board member.

Gary I. Glassman

Related Content:

Practice Finances
Market research: How to find your edge
Market research: How to find your edge
A technician’s true value
A technician’s true value
Build your first veterinary hospital
Build your first veterinary hospital

Advertisement

Latest News

An update on copper concerns in pet foods

Dental hacks to make every case more manageable

Q&A with a keynote: Walter Brown, RVTg, VTS, ECC

News wrap-up: This week’s headlines, plus dvm360® launches its first CE podcast

View More Latest News
Advertisement