April Tax Tips for DPC Physicians

The personal tax filing deadline for 2023 is just a month away. But there are still some last-minute moves you can make to reduce your tax bill.

1. Top off your 2023 HSA contribution. If you were covered by a high-deductible health plan during 2023, you have until April 15h to max your contribution. There’s no income cap. You can contribute up to $3,850 for self-only plans, and $7,750 for couples/families. Add $1,000 if you’re 55 or older.

2. Do a “Back-Door Roth.” Most doctors earn too much to contribute to a Roth directly. But you can still make a non-deductible contribution to a traditional IRA, regardless of your income, and then do a Roth conversion. You don’t get a first year deduction. But you’ll still get the benefit of indefinite tax-free growth, as long as the money stays in your Roth IRA.

3. Claim the Home Office Tax Deduction. This deduction can be worth thousands of dollars. You can read more about the business use of home deduction in IRS Publication 587.

 Are You Tracking These Key Performance Indicators? 

What gets measured gets improved. But first you have to measure it! Here are some important KPIs you should be formally tracking every month.

• Patient satisfaction ratings
• Net promoter score (% of patients who would recommend you to friends and family)
• Patient attrition/turnover rates
• Marketing costs per new subscriber 
• DPC subscription revenue (total and per patient)
• Average a1c improvement among diabetic patients after 1 year