Doctors, Are You Tipping Uncle Sam? Avoid These Common Errors, EP 34
Release Date: 08/01/2025
Doctors, Are You Tipping Uncle Sam? Avoid These Common Errors, EP 34
Physician Cents
Many physicians don’t realize they’re leaving extra money on the table by “tipping” Uncle Sam through simple, avoidable tax mistakes. While it’s easy to assume your accountant has everything covered, the truth is even experienced professionals (and software) often miss key physician-specific issues. This episode shines a light on common errors doctors make, from mishandled Backdoor Roth contributions to missed 1099 forms and state tax complications. If you’ve never double-checked these items, you might not even know you’re paying more than you should. Recognizing these pitfalls...
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Buying a Home as a Physician? What No One Tells You About the Mortgage Process, Ep 33
Physician Cents
Most physicians assume qualifying for a mortgage is straightforward; after all, you’re highly educated, creditworthy, and well-compensated. But buying a home as a doctor comes with hidden pitfalls that can leave you paying way more than you should, getting rejected unexpectedly, or locking in a rate you’ll regret. Many don’t realize that standard mortgage rules aren’t designed for your unique career arc, training debt, or 1099 income, leading to confusion and frustration in an already stressful process. Today, we get into those problems head-on with mortgage expert Josh Mettle, who...
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Before You Sign Anything: What Docs Need to Know About Disability Insurance, Ep 32
Physician Cents
If you’re a freshly minted physician just stepping out of residency or fellowship, the last thing you need is another decision demanding your urgent attention. But there’s a flurry of emails, conversations in hospital cafeterias, and ads in your inbox pushing one message hard: “Get disability insurance now, or else.” It’s intense, it’s relentless, and it’s not the full story. What’s often left unsaid is that while disability insurance is crucial, potentially one of the most important financial decisions of your early career, you’re not on the clock in the way you’ve been...
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How Big Life Changes Wreck, or Rescue, Your Student Loan Strategy, Ep 31
Physician Cents
You might think that making more money solves more problems, but early-career physicians know it can have the opposite effect. The moment you or your partner graduate, sign a contract, or even get engaged, your financial world shifts. And if one of you has massive student loans tied to forgiveness programs like PSLF, those life events don’t just change your lifestyle; they can completely upend your loan strategy. In this episode, we examine how a personal decision like marriage can lead to substantial changes in your repayment plan, tax filing decisions, and long-term financial outlook. And...
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What If Your Paycheck Disappeared Tomorrow?, Ep 30
Physician Cents
Imagine waking up tomorrow and not being able to work, no more surgeries, clinic, or call shifts. For most physicians, your ability to earn an income is your single greatest financial asset, yet few stop to consider how vulnerable it is. If you’ve never heard of “own occupation” disability insurance or assumed your employer coverage is enough, this episode is your wake-up call. Hosts Chad and Tyler explain why disability insurance isn’t just another box to check; it’s a cornerstone of financial security, especially early in your career. Whether you're still in medical school,...
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Why Your Disability Insurance Might Not Work When You Need It Most, Ep 29
Physician Cents
It’s not like physicians wake up thinking about disability insurance. But you might wish you had. Today, Dr. Stephanie Pearson shares a raw, firsthand account of the career-ending injury that forced her to trade the OR for the insurance world. Her story doesn’t just highlight the importance of coverage, it exposes the hidden traps in policies that too many doctors assume are solid. The goal here isn’t fear; it’s preparation. And her lived experience lays out a compelling case for why most physicians walk around with a false sense of security. We also get into what “true...
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Why Smart Docs Still Stress About Money (Even When They're Set), Ep 28
Physician Cents
Physicians assume that once their income stabilizes and their savings plans are in place, they will have peace of mind. But what if that peace never shows up? What if, despite doing everything “right,” they still feel anxious, distracted, or perpetually behind? In this episode, we explore a surprising culprit: the emotional toll of financial noise - the relentless stream of news, updates, social media posts, and peer chatter that quietly chips away at your well-being. Today, we’ll walk through real-world examples of clients with rock-solid plans who nonetheless feel like the sky is...
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Simple Steps, Serious Protection: Asset Protection 101, Ep 27
Physician Cents
Physicians don’t realize they’re financially exposed — not just to malpractice, but to everyday events like fender benders, lawsuits, or even divorce. Asset protection sounds like something complex or reserved for the ultra-wealthy, but in reality, there are basic, easy-to-implement steps that can make a big difference. This episode starts by opening your eyes to just how vulnerable your assets might be right now — especially if you haven’t taken any proactive measures to protect them. As the conversation unfolds, hosts Chad Chubb and Tyler Olson break down four practical and...
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You’ve Been Matched with a Residency, Now What? Ep #26
Physician Cents
You’ve matched—congrats! But now what? As you transition from med school to residency, financial decisions are about to get real, and the steps you take now can make a huge difference in your financial future. Many new residents don’t realize how much financial planning matters at this stage—things like student loans, budgeting, and even insurance may seem like details you can handle later, but getting ahead now can save you serious money (and stress) down the road. Federal student loans, private refinancing, and income-driven repayment plans all come with deadlines and fine...
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Why ‘Standard Contracts’ for Physicians Are Anything But, Ep #25
Physician Cents
Most physicians assume their first contract is a “standard agreement” that everyone signs without question. But as Kyle Claussen, CEO of Resolve, reveals in this episode, there’s no such thing as a truly standard physician contract. From compensation structures to non-compete clauses and tail coverage, every detail can significantly impact your financial future and career flexibility. Yet, many doctors accept these contracts at face value, unknowingly leaving money on the table or committing to restrictive terms that could hinder them down the road. By the time a physician realizes...
info_outlineMany physicians don’t realize they’re leaving extra money on the table by “tipping” Uncle Sam through simple, avoidable tax mistakes. While it’s easy to assume your accountant has everything covered, the truth is even experienced professionals (and software) often miss key physician-specific issues. This episode shines a light on common errors doctors make, from mishandled Backdoor Roth contributions to missed 1099 forms and state tax complications. If you’ve never double-checked these items, you might not even know you’re paying more than you should.
Recognizing these pitfalls is the first step toward smarter tax management. We talk through why backdoor Roth errors are so prevalent, like incorrect Form 8606 filings or failing the pro rata rule, and how even seasoned accountants may overlook them if they’re not used to working with doctors.
We also explain how underpayment penalties happen (especially with 1099 or K-1 income), why S-corp elections are often misused or badly set up, and how moving states complicates your filing. These aren’t just minor technicalities; they can mean real dollars lost.
Finally, we give practical advice for catching and avoiding these errors, stressing the importance of proactively reviewing drafts, coordinating with your accountant and advisor, and understanding safe harbor rules.
The goal isn’t to turn every doctor into a CPA, but to empower you with the questions and vigilance that keep you from accidentally overpaying. This episode is your invitation to take control of your tax planning so you can keep more of what you earn, without leaving tips for Uncle Sam.
Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients.
You will want to hear this episode if you are interested in...
- (00:00) Are you tipping Uncle Sam?
- (03:05) Backdoor Roth IRA errors.
- (11:36) Missing 1099 income.
- (12:49) S-corp election mistakes.
- (21:15) Underpayment penalties.
- (28:59) State and local tax issues.
The Biggest Tax Mistakes Physicians Make (and Why They’re So Common)
As physicians, you’re busy enough without memorizing the tax code. But that’s exactly why so many doctors unknowingly make the same costly mistakes year after year.
We see this all the time: backdoor Roth IRA errors because Form 8606 is ignored or filled out wrong, pro rata rule surprises because advisors forget to warn you about old IRA balances, and S-corp setups with unreasonably low salaries that scream audit bait.
These aren’t gotchas you can shrug off; they’re real money leaks, often in the thousands, that persist because no one stops to check the details until it’s too late. That’s why we think it’s essential to actually talk through these issues out loud.
When you hear about these missteps, from underpayment penalties caused by ignoring quarterly estimates, to forgetting 1099 income from side gigs or bank interest, it’s not meant to shame anyone.
It’s meant to arm you with the right questions for your accountant, to catch mistakes before they cost you. As physicians, you know small oversights can have big consequences. The same is true for your taxes.
Why Your Accountant (or Software) Might Miss It
Even with a professional in your corner, there’s no guarantee your return is error-free. Many accountants don’t specialize in physician finances, so they may not recognize the red flags unique to your situation.
And if you’re using software like TurboTax, you’re on your own to answer questions it doesn’t even know to ask about your multiple states of work, backdoor Roth moves, or S-corp salary calculations.
You need to understand that you can’t outsource vigilance completely; you have to be part of the conversation.
How to Avoid These Errors and Keep More of What You Earn
Our goal isn’t to turn you into a tax expert, but to help you avoid tipping Uncle Sam. That starts with proactively reviewing your tax drafts with your accountant before filing, catching Backdoor Roth errors, checking that all 1099s and K-1s are accounted for, and confirming your W-4 or estimated payments keep you out of underpayment penalty territory.
It means questioning whether an S-corp election is really right for you, and staying alert if you’re moving states or practicing in multiple locations so you file properly everywhere you need to. Ultimately, this is about claiming your role as the financial steward of your career.
You’ve worked too hard to let the system nickel-and-dime you through preventable mistakes. A little planning now saves a lot of stress and money later. So let’s commit to catching these issues before they become expensive lessons, and make sure you’re only paying what you truly owe.
The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
Resources & People Mentioned
- https://www.irs.gov/forms-pubs/about-form-8606
- https://www.turbotax.intuit.com
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