ASingh86ParticipantStatus: PhysicianPosts: 21Joined: 05/06/2018
I am a sole-proprietor/independent contractor and I have a separate business checking account in which all my clinical payments come in and I pay myself by transfer to my personal account every month.
I will be getting paid for a medical deposition and was wondering which account should I be depositing this money into. Business checking or personal checking? Does it matter?
Any help would be greatly appreciated.
Thank youSeptember 10, 2019 at 12:37 pm MST #245089CordMcNallyParticipantStatus: PhysicianPosts: 2805Joined: 01/03/2017
Untraceable foreign bank under a shell company.
Do you plan on doing this often? If so, I would get another separate account. If it’s a one-time thing, I would deposit it into my personal account. Just make sure you properly declare it.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorWhite.Beard.DocParticipantStatus: PhysicianPosts: 936Joined: 02/06/2016
Normally the payment should come with a 1099 to you at the end of the year. You would declare the income and deduct any expenses, so you need a system for that if this is an ongoing thing. An easy way to do that is to deposit the check into your business account as business income from your practice of medicine as a medical expert giving a deposition.
If it is a one time deal, then it is less of a concern, but even if you deposit it into your personal account, you are required to declare the income on your annual tax return.September 10, 2019 at 1:15 pm MST #245099MPMDParticipantStatus: PhysicianPosts: 2483Joined: 05/01/2017
As long as you pay the taxes indicated by your 1099s I don’t think the IRS cares at all.
I have ~15% comp over my W2 base every year as an IC, at the suggestion of my accountant I just run it all through my personal checking.
If you aren’t paying your taxes a separate checking account isn’t going to help you.
The other thing is that if you are doing depositions you shouldn’t have many expenses to deal with.September 10, 2019 at 1:52 pm MST #245106