hello, my husband and i are starting locum tenens work for psychiatry from july after he graduates. i understand this is SELF employment and was unsure about how we have to do our taxes:
- do we have to estimate quarterly and pay taxes? if so, how do we calcualte estimated taxes?
- can we dedeuct our privately obtained disability/helath/life insurace?
- the most important question i have is, ive heard attendings talk about forming an LLC. would this be benfeicial for us, if so, in what way?
thanks.

Zip Code: 24018

Great question.

If you work as an independent contractor, you will owe federal, (most likely) state, and self-employment taxes on the money you earn. Check out the Memo to Moonlighters in our January 2005 newsletter available at http://www.mdtaxes.com/news0205.html#2. The information in this article applies to Locum Tenens as well.

With respect to your life and disability insurance premiums, the money you pay for this insurance is usually not tax deductible.

And does it make sense to form an LLC? This is more a question for a lawyer. For tax purposes, you will generally be taxed exactly the same way whether you set up a single-member LLC or just report your income as a sole proprietor. The LLC might provide some protection from certain liabilities, and a lawyer should be able to provide you with some input on this.

If you need help determining your 2009 quarterly estimates, please contact the MDTAXES CPA nearest you at www.mdtaxes.com/offices.html.

Zip Code: 01801