Dental Tax Planning Tips with Jay Malik for 2024 Success
Start the Year with a Strategic Mindset
Tax planning isn’t just something you do in April. According to Jay Malik, one of the biggest missed opportunities for dentists is failing to plan proactively. Whether you own your practice or are an associate, your financial success hinges on understanding how tax decisions impact your bottom line throughout the year—not just at filing time.
Jay often says, “Every dollar you save in taxes is another dollar you can reinvest into your practice or your future.” Let’s take a look at some actionable ways dentists can lower their tax liability and grow their wealth in 2024.
Maximize Dental Practice Deductions
Many dentists leave money on the table by overlooking legitimate business deductions. To ensure you’re not one of them, make sure to:
- Track all continuing education expenses—including travel, courses, and associated materials.
- Deduct equipment purchases using Section 179 or bonus depreciation rules for big tax breaks.
- Classify staff benefits correctly for full deduction opportunities (e.g., health insurance, retirement contributions).
- Consider vehicle expenses if you use your car for practice-related purposes like attending conferences or managing real estate investments linked to your office location.
Proper documentation is essential. “You don’t just need to spend money—you need to prove it was a business expense,” Jay often reminds clients.
Structure Your Entity the Right Way
The way your dental practice is structured—whether it’s an S corporation, LLC, or sole proprietorship—can drastically affect how much tax you pay.
Jay explains, “S corps can offer major payroll tax savings, but only if set up and managed properly.” If you’re still operating as a sole proprietor or an LLC taxed as one, it might be time for a checkup on your entity structure. An S corp or partnership may allow you to split business income efficiently between salary and distributions, resulting in lower self-employment taxes.
Use Retirement Plans to Shield Income
Tax-favored retirement plans continue to be one of the most effective tools for dentists to reduce taxable income.
If you’re an owner, consider:
- Solo 401(k)s — excellent for dentists with few or no employees.
- Defined benefit plans — ideal for high-earning dentists who want to contribute well above traditional retirement limits.
- SEP IRAs — simpler than a 401(k), with generous contribution limits for small practices.
“As a dentist, you have the ability to shelter six figures in income legally,” says Jay. That’s a wealth-building strategy most high-income professionals can’t afford to ignore.
Don’t Overpay Estimated Taxes
Many dentists write large checks to the IRS every quarter—but not always based on precise projections. In 2024, work with your tax advisor to calculate your estimated taxes based on updated practice performance and any new investments or deductions.
Overpayment ties up your cash. Underpayment triggers penalties. Jay recommends quarterly reviews to keep your plan current and cash flow optimized.
Bonus Tip: Combine Tax and Practice Strategy
The most successful dentists don’t separate their tax planning from their practice strategy. “When you align your tax plan with your practice goals—like expanding to a second location or investing in new technology—you create financial momentum,” Jay explains.
At Less Tax For Dentists, we specialize in helping dental professionals uncover overlooked deductions, design custom retirement strategies, and set up the right entity structures to support their dreams.
Final Thoughts
If you’re a U.S. dentist aiming for a financially smarter 2024, these tax planning tips from Jay Malik are a solid foundation. But remember, great tax strategies are personal. Your practice size, staff, income level, and long-term goals all matter.
Reach out to our team to craft a plan that works specifically for you—and reclaim control of your financial future.
