💼 From Stethoscope to Spreadsheet: Maximizing Your Locum Income

Smart tax planning turns flexibility into freedom for today’s locum professionals.

🩺 Freedom Means More Than Flexible Shifts

You chose the locum lifestyle for freedom — freedom to pick assignments, choose locations, and work on your terms.

Whether you book jobs through Weatherby Healthcare, Hayes Locums, or CompHealth, the locum path offers unparalleled independence.

But independence also means responsibility. As a 1099 contractor, you’re not just a clinician — you’re a business owner. And that means you can use business-grade strategies to grow your income and reduce your taxes.

📈 Three Tax Tools Every Locum Should Know

1️⃣ SEP IRA or Solo 401(k)

Both let you stash away 25% of your net income, up to $69,000 (2024), as a deductible contribution.

• Solo 401(k): Includes employee + employer contributions, allowing higher limits.
• SEP IRA: Simpler setup, ideal if you work solo and want ease over complexity.

These aren’t “retirement-only” accounts — they’re tax shelters that lower this year’s bill while building long-term wealth.

2️⃣ S-Corp Election

Running your locum business as an S-Corporation can reduce self-employment taxes by allowing you to pay yourself a “reasonable salary” and take the rest as a distribution — which isn’t hit by the 15.3% SE tax.

With the right bookkeeping, this structure can save thousands annually.

3️⃣ Business Deductions That Add Up

Every locum’s travel bag is full of potential deductions:

• 🧳 Flights, rental cars, lodging, and meals
• 🩺 Licensing fees, scrubs, and medical equipment
• 💻 EMR software, CME subscriptions, and insurance
• 🏠 Home office or telehealth setup

Keep clean records — these small expenses become big savings at tax time.

🧮 Turning Numbers Into Freedom

When you understand your deductions and optimize your structure, you’re not just “doing taxes” — you’re engineering financial independence.

Imagine:

• $20,000 saved through retirement deductions
• $5,000 saved via an S-Corp election
• $3,000 in travel and CME deductions

That’s $28,000 less taxable income — without cutting hours or taking extra shifts.

🌳 Where MyPensionTree Comes In

At MyPensionTree, we help independent medical professionals like you design tax-advantaged pension plans that grow with your career. Whether you’re on your first assignment or managing multiple contracts, our advisors tailor solutions that maximize both flexibility and savings.

Don’t just work more — keep more of what you earn.

💼 Start your free tax-savings consultation at MyPensionTree.com.

📘 Quick Recap

StrategySavings PotentialEffortSEP IRA / Solo 401(k)Up to $69KLowS-Corp Setup10–15% tax reductionModerateExpense DeductionsThousands yearlyOngoing

💡 Final Thought

You already know how to heal patients — now it’s time to heal your finances.

With a few strategic moves, your locum income can become a long-term wealth engine.