Welcome to the MDTAXES Message Board

The MDTAXES Network is an affiliation of CPAs that specialize in the tax planning and preparation for young health care professionals.  Please leave your questions or comments for our CPAs, who visit the message board regularly, or review the answers, suggestions and ideas posted in response to your colleagues' questions.

Please check out our other Message Boards available at www.FindAGoodCPA.com.

Please note: We are NOT affiliated with the Maryland Tax Department. If you're looking for information about Maryland income taxes, go to www.marylandtaxes.com.

Tax Deductions
Start a New Topic 
View Entire Thread
Re: Medical Scribe Question

I would say that a physician paying someone to help with medical transcription would generally qualify as an "ordinary and necessary" business expense and should be tax deductible to you on your Schedule C.

However, don't forget that if you are paying an individual and not a corporation, and you paid more than $600 to that person during the calendar year, you need to complete a 1099-Misc form, and mail one copy to the person you paid and a second copy to the IRS along with a 1096.

Here are some basics:

1. You should have the person complete a W-2 form to get their correct name, address, and Social Security Number or EIN. You can download a W-9 at: http://www.irs.gov/pub/irs-pdf/fw9.pdf. (It's a good idea to get the person to complete a W-9 before you pay them any money to let them know that you will be preparing a 1099 to report this income.)

2. There is now a box to check on your Schedule C attached to your federal tax return to show that you were required to file a 1099, and then a second box to check to show that you did in fact prepare and file the 1099.

3. You can download blank 1099 and 1096 forms at www.irs.gov or purchase forms at Staples. Or, you can have your CPA prepare these tax forms for you. My firm can also help you out, and our fee to prepare and submit one 1099 is about %75.

I hope this helps you out.

Zip Code: 01801

Re: Medical Scribe Question

That helps out a lot! The group contracts with a company to provide scribe services so I don't think I'll need to provide any 1099 forms.

Thanks again!!

Zip Code: 78749