Medical Licensing Expenses Are Tax Deductible
Physician licensing can be expensive. The average medical license initially costs around $1500 for fees and verifications. Add physician licensing service assistance (which can cut the medical licensing time by up to 40% and allow you to start working much sooner), and your total can run around $2100-$2300. These averages vary by state and physician, but they represent a healthy cross-section of the medical licensing industry.
There is GOOD NEWS regarding these physician licensing expenses, though. These fees (including those paid to a medical licensing service) are tax deductible. There are several options, depending on a physician’s employment status:
If the doctor is self-employed, fees paid to any physician licensing company are a “professional expense” and can be 100% deductible, in addition to the cost of the medical license itself.
If the doctor is an employee, he/she could deduct the costs as either “job hunting” expenses or “unreimbursed employee” expenses also called URE’s (subject to 2% of their AGI or “Adjusted Gross Income”). What this means is that they would have to add up all of their URE’s and see if they exceed 2% of their AGI (i.e. AGI is $100,000 x 2% = $2,000 – their URE’s would need to exceed $2,000 before they get any schedule A deductions).
The self-employed would get the greatest benefit but the deductions can be claimed by a number of employees, as well.
It’s nice to hear a little good news in these days of increasing fees and verification expenses. Please call our medical licensing experts to get more information on the costs and benefits to utilizing a physician licensing agency to obtain your new medical license.
About Physician Licensing Service
Now in our 16th year of business, Physician Licensing Service has been changing the face of healthcare licensure. We have developed a proven system to remove the barriers common to state medical licenses and get doctors practicing in record time. Our business model focuses on simplifying the process for all involved parties. This includes the state medical boards themselves, because PLS takes great care to keep abreast of their updates in this ever changing field, and work within those guidelines. For a doctor seeking a medical license, PLS will take on the entire process, including eligibility research, paperwork, verifications, and follow up.