Dr. Mirhom is a New Jersey-based psychiatrist. Like so many healthpreneurs, he had to navigate a maze of different employment roles as he seized exciting career opportunities.

He juggled (and continues to balance):

❌ a full-time W2 position at a reputable hospital that provided him with a steady income and benefits

❌ independent 1099 work as a private practice psychiatrist that granted him the autonomy he yearned for

This made his tax and accounting situation pretty tricky.

To add to the complexity, Dr. Mirhom's career was on the move— literally. He had relocated to a new city, which brought with it a fresh set of financial and tax implications.

He tried TurboTax but knew it wasn’t enough to protect him. The fear of inadvertently making a mistake while filing taxes gnawed at him. He knew that the stakes were high. One misstep could lead to penalties, or worse—an audit.

And then it happened: he got slapped with a significant underpayment penalty on his first quarterly estimated tax bill. He sought the advice of a close friend who recommended Sigma.

Here’s what we did for him:

1. We evaluated his financial situation.
   • We carefully reviewed his current finances, previous W2 earnings, and projected 1099 income.
2. We developed a plan to lower his business expenses and taxes by restructuring his business for greater efficiency, which resulted in a reduction of his total tax liability.
   • We conducted sessions to understand his professional goals and anticipated expenses. Dr. Mirhom received a blend of tax planning, business expense advisory and templates plus personalized guidance for quarterly tax payments.
3. We set up a system for filing quarterly and annual taxes.
   • We prepared a tax return that accurately captured his W2 and 1099 work. And we put into place a system for timely quarterly estimated tax payments to prevent another penalty.

It worked. Dr. Mirhom saved:

💰 $33,059 by claiming previously missed deductions, changing business structure and employing tax planning strategies including applying for penalty abatement.

💰 $5,000+ by avoiding another underpayment penalty (for 2 years and counting)

⏰ 65% of time previously spent grappling with tax preparation, giving him more time for contract work

And he finally felt:

😎 Confident navigating the financial implications of his 1099 status

💡 Knowledgeable about business expenses and deductions affecting his tax bill

🧘🏽 At peace, knowing that he is compliant and optimizing his tax situation

🛞 In control of his professional journey and ready for future opportunities

Balancing W2 and 1099 employment created a tricky tax situation with significant room for error and penalties. With our help, Dr. Mirhom was able to turn those challenges into $33,059 in tax savings, more time to focus on his patients, and opportunities for continued business growth.

Wondering how Sigma can get you the tax savings and peace of mind you deserve?