10 Common Tax Deductions Most Dentists Miss Out On

As a dentist, you are likely familiar with the many tax deductions available to you. However, you may be overlooking some deductions that could save you money.

In this comprehensive guide, we will discuss ten tax deductions that dentists may be overlooking in the United States. We will cover deductions for business expenses, dental supplies, and more. By taking advantage of these deductions, you can save money on your taxes and keep more of your hard-earned income.

So, let’s get started!

1. States Sales Tax

If you live in a state with a sales tax, you can deduct the amount of sales tax you paid on dental supplies and equipment. This deduction is available whether you purchase supplies online or in-person.

To claim this deduction, you will need to keep receipts for all of your purchases. You will also need to know the sales tax rate in your state.

2. Home Office Deduction

If you have a dedicated space in your home that you use for dental work, you may be able to deduct a portion of your mortgage or rent payments, utilities, and other expenses.

To qualify for this deduction, your home office must be used exclusively for dental work. It must also be the primary location of your dental practice.

3. Dental Supplies

You can deduct the cost of dental supplies that you use in your practice. This includes items such as gloves, toothbrushes, floss, and other dental products.

4. Dental Equipment

You can also deduct the cost of dental equipment, such as x-ray machines and dental chairs. If you finance your equipment, you can deduct the interest payments on your loan.

5. Advertising

You can deduct the cost of advertising your dental practice. This includes the cost of print ads, online ads, and even billboards.

6. Office Rent

If you rent office space for your dental practice, you can deduct the cost of your rent payments.

7. Office Supplies

You can deduct the cost of office supplies, such as paper, ink, and toner.

8. Office Equipment

You can deduct the cost of office equipment, such as computers, printers, and fax machines.

9. Summer Child Care Expense

If you have young children, you may be able to deduct up to $3,000 of summer childcare expenses on your taxes. This deduction is available for children under 13 years of age.

To qualify, you must be working or looking for work. The deduction is available for up to $3,000 of expenses per child, per year.

10. Lost Deduction from Prior Years

If you failed to take a deduction in a prior year, you may be able to claim it on your current year’s taxes. This is known as the “carryforward” deduction.

To claim a carryforward deduction, you must file an amended return for the year in which you originally missed the deduction. You then carry the deduction forward to your current year’s taxes.

There are a few limitations to this deduction. First, you can only carry the deduction forward for a maximum of three years. Second, the deduction is limited to the amount of taxes you would have saved in the year you originally missed the deduction.

The Bottom Line

Dentists have access to several tax deductions that can save them money on their taxes. These deductions can be used to offset business expenses, dental supplies, and more.

By taking advantage of these deductions, you can keep more of your hard-earned income and reduce your tax liability.

Ash Dental CPA offers accounting and tax services from a CPA for dentists in Framingham. Contact us today to know more about our services!