How are “gross receipts” vs. net income recognized?
The gross receipts you use to calculate your tax are your cash collections, if you are a cash-basis taxpayer – like most physicians. Go to the TMA 2006 Tax Calculator, where you can find more information on how to calculate your taxes. Steps to follow to estimate the effect of the new business tax: • Start with gross receipts (cash collections). • Subtract Medicare, Medicaid, Children’s Health Insurance Program, workers’ compensation, and TRICARE revenues. Also subtract any revenues paid under the Indigent Health Care and Treatment Act; • Subtract staff and physician salaries, health care benefits, retirement contributions, and workers’ compensation payments, (up to $300,000 per person). • Multiply the remaining sum by 1 percent. If the answer is less than $1,000, you owe no tax. • If you still owe tax, you can claim a deduction from revenue for your charity care costs. It might be worth the effort. When I subtract Medicare, Medicaid, CHIP, Tricare and workers’ comp revenues, does that
