I — Insist on less tax
Tax planning for dentists: pay the legal minimum, every year
The more you earn, the more you can lose to taxes you never planned for. The second part of the Rich Dentist System treats tax planning as a year-round habit, not a once-a-year event.
Why dentists overpay
Most dentists get tax preparation, not tax planning. The return records what already happened, so the chances to save were lost months earlier. Planning during the year, with accurate books, is what opens up deductions, retirement contributions and timing decisions that are fully legal under US tax law.
Strategies we look at for every practice
- Entity structure: whether an S corporation election makes sense and how to set a reasonable salary
- Retirement plans: 401(k), profit-sharing and cash balance plans that turn savings into deductions
- Equipment and buildouts: timing purchases and depreciation
- Credits: including the federal research and development credit, where the practice qualifies
- Family and fringe benefits: accountable plans, hiring family members and benefits done the right way
- State taxes: planning around the rules of the state you practice in
What the process looks like
- We go through your latest federal and state returns and your current books.
- You get a Strategic Tax and Wealth Analysis showing where you may be able to save.
- We put the chosen strategies in place and check progress during the year, before year-end decisions are locked in.
Legal, documented and defensible
Every strategy we use is based on current US tax law and backed by records. If a strategy sounds too good to be true, we say so. The goal is lower tax you can defend, not risk you don’t need.
Learn it from Jay in person
Jay teaches this topic to dentists at meetings and study clubs. See the course: Dental Tax Savings Strategies.
Frequently asked questions
What is the difference between tax planning and tax preparation?
Tax preparation reports last year. Tax planning happens during the year and changes what you owe before the year ends.
Can dentists still benefit from an S corporation?
Often, once profit is high enough. It can reduce self-employment tax on part of the income but requires payroll and a reasonable salary, so it needs to be modeled for your numbers.
Is this advice specific to US tax law?
Yes. Everything here is based on federal US tax law, with state rules considered for the state you practice in.
The rest of the system
Track practice and personal finances
See exactly where the money goes, in the practice and at home, with books that are accurate every month.
Eliminate bad debt
Pay off the debt that drains cash flow, then redirect those payments into savings and investments.
Build wealth with a plan
Grow wealth steadily, in line with your goals and risk tolerance, with advice you pay for directly.
Put this part of the system to work
Book a free consultation and see what it could mean for your practice.