Locums Lowdown: 5 Money Mistakes 1099 Physicians Don’t Know They’re Making | Episode 52

Are you filing correctly… or filing strategically? Because those are not the same thing. In this masterclass episode, James and Jeff walk through the hidden $68,000 gap that separates two identical physicians earning the same income—one overpaying in taxes, the other building intentional leverage through strategy. This isn’t about aggressive loopholes. It’s about understanding the business-owner advantage that comes with 1099 income—and using it properly. You’ll learn: The 5 diagnostic questions that reveal whether your tax strategy is optimized Why many physicians stop at a SEP IRA—and what they may be missing with a Solo 401(k) The S-Corp vs LLC decision (and when it actually matters) How to determine reasonable salary without triggering IRS red flags The difference between a CPA and a tax strategist Why reactive tax filing costs more than proactive tax planning How putting your kids on payroll (done properly) can build multi-generational wealth Why portfolio income tax strategy matters just as much as earned income planning This episode challenges physicians to move from passive compliance to proactive design—so their tax plan supports their family, their freedom, and their long-term legacy. Key Takeaways 1. Entity Structure Matters More Than Most Think Are you a sole proprietor? LLC? S-Corp election? Your structure impacts payroll, FICA, QBI deduction eligibility, and long-term tax efficiency. 2. Salary Optimization Is Critical Too high = unnecessary FICA. Too low = IRS red flag. There is a strategic balance. 3. Retirement Stacking Can Unlock Major Savings SEP IRA vs Solo 401(k) Backdoor Roth strategy Roth growth potential over decades Many physicians stop at one vehicle without realizing the compounding opportunity cost. 4. Business Deductions Require Proactive Review Examples discussed include: Home office Health insurance premiums Vehicle strategies Continuing education Augusta Rule considerations Kids on payroll (Always implemented appropriately with professional guidance.) 5. Reactive Filing Is Expensive If taxes only come up in April, you’re late. Strategic planning happens throughout the year. Additional Resources  Download the PSLF Hacks Checklist Book a free financial wellness session with James Get access to exclusive physician financial tools at www.imwealth.com 1% of IM Wealth’s revenue is dedicated to providing scholarship funds to medical students. Learn more about the Meaningful Journeys Scholarship and how you can join the fight here. Learn more about the impact IM Wealth is making in the lives of physicians here. Gain FREE immediate access to all of IM Wealth’s exclusive physician financial wellness resources here. About the Show: This isn’t just another finance podcast—it’s a movement. We’re challenging the status quo, cutting through the noise, and giving physicians real strategies to take control of their money and their future.  Because true wealth isn’t just about numbers—it’s about freedom. Find and follow the show on YouTube.  About James Nutter: James Nutter is on a mission to help physicians reclaim their financial power. With a deep understanding of the unique challenges doctors face, he provides real-world strategies that cut through the noise and lead to lasting financial freedom. Follow James on Instagram.  Disclaimer The opinions expressed in this podcast are for informational and educational purposes only and do not constitute financial, legal, or tax advice. Any financial decisions should be made in the context of your unique circumstances and in partnership with a trusted financial advisor who understands your personal plan. A Physician’s Guide to Wealth Podcast — Brought to you by IM Wealth: Helping physicians take control of their money so they can live a purposeful life.For more resources, visit IMWealth.com.Advisory services offered through Commonwealth Financial Network®, a Registered Investment Adviser.