Are you a Doctor? Here’s everything you should know about filing taxes

You're strong enough to overcome even the worst diseases, yet the thought of doing your taxes makes you feel ashamed. If filing your taxes and understanding the procedure is the only thing keeping you up at night, the advice below should help.

If you have income, you need to submit a tax return to tax advice doctor. Individuals whose annual income is greater than a certain limit, are required by law to submit an income tax return. Total revenue includes money received from any and all sources.

Tax return filing and preparation instructions

All of your earned money must be reported on your tax return by Steuerberatung Arzt. Capital gains and interest from savings and checking accounts, interest from fixed deposits, and any revenue from the operation of your practice are all included here. Your practice's revenue may be determined in two ways.

Either treat it as if it were a company, in which case you would have to keep records, subtract your costs from your income, and then pay taxes on the resulting profit or loss. Alternatively, you might choose to be taxed on the basis of assumptions. After totalling all of your income, you may deduct certain expenses under sections to lower your taxable amount and then pay tax on the amount that is left over. Begin your tax return right here.

Should I be keeping financial records for my business?

Accounting records of your business are helpful, and in certain situations required, much as a patient's medical records are important and must be kept meticulously. As any tax advice doctor would know, medical professionals face little resistance when it comes to preserving financial records. Keeping any kind of financial records is obligatory if your yearly revenues are more than the minimum in any of the last three years. Certain documentation, including -

• Cashbook- Keeping track of all the money that comes in and goes out every day requires a cash book. A log that details the day's or at least the month's cash balance.

• Journal- A diary is a book in which a bookkeeper or accountant records all of the money that comes in and goes out of a business.

• Ledger- Financial statements may be generated from a ledger in which all transactions are recorded in the journal.

• Bill copies - Photocopies of invoices or receipts that you have issued that total more than a certain limited, Invoices in their original form for purchases you've made that total more than the minimum, extra qualifications for medical professionals include the following:

How do I figure up my yearly income?

No precise definition of "gross revenues" can be found in the income tax code. Of course, you need to factor in whatever you make as a result of your work. Other sources of income, such as book sales, speaking engagements, and article contributions, may not be included in your gross earnings.

End Note

If you're a doctor, you may also own a pharmacy or a medical facility where patients pay to stay in private rooms. As a result, you may need to record your earnings from these endeavours as business income, and the assumed tax rate will not apply. Only the portion of your income that can be directly linked to your occupation will be subject to the presumptive tax rate.

Also read: 8 tips to choose tax preparer