Most doctors are overpaying their federal and state income taxes by more than $20,000 annually. One reason is because they’re paying some expenses with personal after-tax dollars that if properly structured, could be paid with tax-deductible dollars through their practice. Compare your results with our averages discussed below, based on helping almost 1,200 Tax, Financial, and Business Planning* clients achieve financial independence.

We routinely ask each Tax, Financial, and Business Planning client to complete a monthly personal living expense worksheet detailing their personal spending for two reasons. First, to determine if there’s excess spending that could be cut back to free up funds to accelerate their path to financial independence. And secondly, to determine if some after-tax spending could be converted to tax-deductible status if properly structured. Below are the top 10 ways we’ve helped clients plan properly to achieve tremendous tax savings.

1. Children’s private school, college, graduate, and professional school costs – Our average client is spending $1,094 monthly from their personal nondeductible funds for educational costs. To fund these with tax-deductible dollars, you should employ your children through the