Dentists often juggle far more than just patient care; in fact, much of your work scope extends beyond the operatory. You spend time ordering supplies, handling administrative work, attending conferences or commuting for lab visits, so it’s only natural to wonder if any of those costs can be written off at tax time?
If you’re self-employed, the answer is yes. These dentist tax deductions can make a real difference in lowering your tax bill. But if you’re an employee dentist (W-2), the rules are different. Since the 2018 tax law change, employees can no longer deduct unreimbursed business expenses such as mileage, continuing education, travel, or home office costs on their personal returns. In that case, your best option is to have your employer reimburse these costs directly under an accountable plan.
However, for practice owners, associates receiving 1099 income, and independent contractors, these deductions are still very much in play. Understanding how they work can help you save money and stay compliant.
Let’s break down what qualifies, what doesn’,t and how to make sure you’re capturing every legitimate deduction.
Car Deductions
If you use your car for practice-related driving – like traveling between offices, to labs, or to CE events – part of those costs may be deductible. The key is separating true business mileage from personal driving and normal commuting to your main office, which is not deductible.
You generally choose one of two methods:
- Standard mileage rate – A flat amount per business mile that already builds in gas, routine repairs, and a basic level of depreciation.
- Actual expense method – You track your real costs (fuel, insurance, repairs, etc.) and apply your business-use percentage. This method is also where more advanced depreciation strategies come into play.
For practice owners, the actual-expense route can sometimes unlock larger deductions through depreciation tools such as Section 179 and bonus depreciation when the vehicle is used enough for business and other rules are met.
The type of vehicle matters too:
- Many smaller cars and SUVs (under 6,000 lbs GVWR) are subject to tighter annual depreciation limits.
- Certain heavier SUVs, trucks, and vans (over 6,000 lbs GVWR) can qualify for much more generous first-year write-offs when structured correctly.
The IRS still expects strong documentation: a mileage log that shows date, destination, purpose, and miles, plus beginning and ending odometer readings each year. With clean records and the right vehicle strategy, car deductions can be a powerful tax tool for dentists.
Most of the real opportunity comes from matching the right vehicle, method, and depreciation strategy to your specific situation. That’s where working with a dental-focused CPA can turn everyday driving into meaningful tax savings.
Home Office Deduction
The home office deduction can be valuable, but it’s also one of the most misunderstood. A common misconception that dentists have is that they can claim a portion of their home expenses simply because they occasionally handle administrative work from home. Unfortunately, that’s not the case.
To qualify for the home office deduction, the IRS requires that the space be used regularly and exclusively for business. This means your kitchen table doesn’t count, even if you sometimes do payroll or pay bills there. The space must be a dedicated area, like a spare bedroom or enclosed office, that’s used only for business purposes.
There’s also the “principal place of business” test to qualify. The IRS wants to see that your home office is an important part of running your business, not just a convenient place to catch up on work. If your main job happens at your dental office, you need to show that your home office is where you handle the things you can’t really do there, like managing finances, scheduling, or marketing.
If you meet those tests, you can choose between two ways to calculate your deduction:
- Simplified method: Uses a flat rate per square foot (up to 300 square feet).
- Actual expense method: Lets you deduct a portion of your rent, utilities, mortgage interest and property taxes based on the percentage of your home devoted to business.
For many practice owners, the home office deduction makes sense if you handle business management or continuing education from home after hours. The key is to document the setup of your home office with photos or a floor plan, as well as notes about the business use. Don’t forget to review it with your CPA to ensure it meets IRS standards.
Travel Deductions
Whether it’s a seminar in another state, a conference to learn about new implant technology, or even visiting a lab or supplier, dentists’ travel expenses can add up quickly. The good news is that many of those costs can be deducted as long as the trip is primarily for business.
The IRS allows deductions for transportation, lodging, registration fees, and 50% of meals when you’re traveling for work. To qualify, the trip must take you “away from your tax home”, generally meaning you need to stay overnight or for a period that requires rest.
It’s fine if you add on a few personal days, but keep in mind that only the business portion is deductible. For example, if you attend a two-day conference in Orlando and stay another two days for a short vacation, you can deduct the travel and lodging for the business days only.
You must be sure to keep detailed records, such as receipts and conference agendas from each business trip. It’s also good practice to make a short note in your calendar or CRM that summarizes what you learned or contacts you met during the business trip. This will go a long way if the IRS ever asks for proof.
For practice owners, consider setting up an accountable plan that reimburses your travel expenses through the business. That way, you get the deduction at the practice level, and the reimbursement isn’t considered taxable income to you personally. This setup is especially helpful for S-Corp or PLLC owners, where you might already take a salary.
A CPA can help you set up a short, written, accountable plan policy (often just a one-page document) and a reimbursement form to keep on file. Once in place, it’s a simple habit: you submit receipts monthly or quarterly, get reimbursed, and let your bookkeeper record the deduction on the business side.
We Help Dentists Save Thousands in Taxes
When it comes to deductions, the biggest mistake dentists make is mixing business and personal expenses. Without clear boundaries, even legitimate write-offs can be disallowed.
At Core Advisors, we help dentists maximize deductions that fit their unique situation. Whether you own your practice or work as an associate, we’ll help you stay compliant while keeping more of what you earn.
Book an introductory call with Core Advisors today to review your current setup and see how much more you could be saving this year.
