Three Financial Steps for Physicians Amid COVID-19
In these unprecedented times, we are thankful for our physicians who are continuing to take care of our communities. While many physicians are fighting the SARS-CoV-2 virus and incidence of COVID-19 (COVID-19) on a daily basis, we also understand you have other considerations during times like these. Here are three things physicians and their families should keep in mind:
Cash flow adjustments. The COVID-19 pandemic will affect many physicians’ compensation. Some physicians will experience increased compensation due to being on the front lines and working more hours. Other physicians will have their income severely affected due to limitations in place regarding nonessential procedures. If you receive a draw, be sure to review it versus your expected income for the year and be intentional about making appropriate adjustments to it. If you are still able to work, it is likely you are working more than usual. In this case, plan for how to use that extra income to propel you forward in your personal goals.
Filing a tax return. As noted in this BKD Thoughtware® alert, the deadline to file your tax return has been extended to July 15. If you are working more hours during this pandemic, this gives you additional time to get your tax return information to your CPA. If you are working less, go ahead and get your tax information to your CPA so that it will be done when you go back to your normal schedule.
Student loan repayment. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides automatic suspension of payments on some federally held student loans through 2020. If you can afford to continue making your payments on your loans, it is a good idea to do so. However, if you feel you need to stop making payments due to a cash flow crunch caused by COVID-19, please verify with your loan provider that your loans qualify for this payment suspension.
As with most topics related to COVID-19, changes are being made rapidly. Please note that this information is current as of the date of publication. Be sure to reach out to your BKD Trusted Advisor™ or use the Contact Us form below if you have questions or would like to discuss your specific situation.