A pediatrician and spouse with W-2 income of $250,000 and rental properties generating an additional $25,000 of taxable income each year were paying $65,000 in taxes annually. The spouse had chronic medical expenses that cost $15,000 per year out-of-pocket that were non-deductible due to their income. The client also spent several thousand each year on continuing education, travel, and licensure expenses that were not deductible. The client wanted a five to seven year retirement plan, has a conservative investment outlook, and wanted comfort that their assets would cover both retirement needs and medical care.
Based on the client’s preferences, cash flow needs, and budget, we designed their custom tax plan:
We reduced the combined Federal & State tax bill by $32,672 the very first year. Then we saved them an additional $12,712 the second year.