Other Tax Questions
Questions and comments on other topics covered in Fairmark.com, such as UTMA accounts, and any tax questions that don't fit our other categories.
IC, EM Doc, Deductions in TN
Posted by: itssalsatime, October 22, 2017 10:43PM
Hi all,
Long time reader, first time poster.

My wife and I are paying quarterly taxes. I am a stay-at-home father and she is an EM doc, we live in TN (no state income, so we will deduct sales tax)

Here is the breakdown of our current situation:
$6,000 in our checking
$28,000 in our savings, but that money is from the "side" escrow account we got at closing [home] from the sellers, between their lawyers and us, with wording in the contract that says it is for home repairs only.(which is what we are using it for, we purchased a home with some damage)

August 1st 17'- Dec 31st 17' Hourly Wages = $146,000
Signing Bonus = $24,000
We did not file in September, because we did not get first check until 09/25.

We have been paying $1,700 a month for Cobra Health insurance since September 1st, which I was reading is deductible. ($6,800 paid by dec 31)

HUD deductions:
loan origination fee of $999 and property taxes of $5,448.63 and $119.74 of prepaid interest.
Have contributed $7,000 to church missionary not-for-profits
Have paid $36,000 mortgage interest ($6,000~ month)
$12,000 new car taxes
Hundreds of receipts with easily $2,000+ in sales tax on them
We have 1 child (i think we are phased out of this?)

Total Deductions=$63,367
AGI= $106,633 For the year 2017 (the first part of 2017 was W2 employee in medical residency)

$14,758.75 plus 28% of the amount over $75,950

so we are sending in:
$16,314 Self Employment Tax
$8,591.24 ($30,683 x .28)

TOTAL: $39,663.99

Am I missing anything? Did i do something wrong, like the self employment tax??
Are we really paying ~37% tax?

thank you kindly.

Re: IC, EM Doc, Deductions in TN
Posted by: tomd37, October 23, 2017 02:57AM
Did you really buy a car or cars in 2017 where you paid TN state and local sales tax (that tax only and not other taxes associated with the purchases) totaling $12,000?

I bought a $40K car this year in TN and the state and local sales tax was only about $2700.

Tom D.

Re: IC, EM Doc, Deductions in TN
Posted by: tomd37, October 23, 2017 07:13PM
Maybe I am a bit "thick" on this post but the more I read it the more questions come to mind. What type of income document will your wife receive at year-end? Will it be a W-2 from her employer or will it be a 1099-MISC indicating she is self-employed? Right now I suspect the latter from your initial post and if so self-employment tax will come into play.

Are you really paying $6,000 per month interest on your mortgage ($72K per year)?

Tom D.

Re: IC, EM Doc, Deductions in TN
Posted by: tomd37, October 29, 2017 11:00PM
The original inquiry seems to have gone dead in the past six days with no response from the OP.

Tom D.

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