20/20 Money Episode # 159 – How Much Should You Pay Yourself?

One of the benefits of being a practice owner is having the flexibility to control where the net income from your practice falls on your personal tax return. This translates into the question, “How much should I pay myself?” In today’s show, we revisit this conversation and talk through some of the different implications of paying yourself a high or low W-2 salary, specifically as it pertains to the accumulation of your Social Security benefits and it’s relationship with the 199A deduction.

As a reminder, you can get all the information discussed in today’s conversation by visiting our website at integratedpwm.com and clicking on the Learning Center. While there, be sure to subscribe to our newsletter and you can also set up a 20-30min Triage conversation to learn a little bit more about how we help ODs around the country reduce their tax bill, proactively manage cash flow, and make prudent investment decisions or check out any number of additional free resources like our eBooks, blog posts, and on-demand webinars.

Form 8960 (Net Investment Income Tax)

IRS Wage Compensation Fact Sheet

How much should you pay yourself (Epsd 68 of 20/20 Money)

Planning for the 199A deduction in your practice

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