Residency Travel Loans

[anwanie99]

Did anybody get one of those residency travel loans? We're really contemplating adding to our debt, yet once again...did this work out for anyone? Does anybody have any other suggestions on how to get through interview season, which so perfectly coincides with the holidays?

-Anne

[SuzySunshine]

We didn't use the loans but I beleive American Airlines has a discount through the AMA.

Other suggestions, try to clump as many interviews together as possible that are close to each other. To go from city to city buy round trips rather than one ways, just don't use the 2nd leg. Be forewarned that this may end up with you on the flyer watch list, this happened to DH but was still cheaper.

If you have ANY friends/family that live in ANY locations stay with them versus a hotel or see if the interviewing location has residents that are willing to house an interviewee.

When in cities that have public transit use it rather then renting a car or taking a cab.

What else...I'm sure I'll think of more.

[KCwife]

We didn't do the loan either, but... follow Cheri's advice on the clumping if possible (it really isn't always). Consider driving to some... and search for prices at other airports in drive-able distance via rental car... it can make a HUGE difference. All said, we spent around 10k, and it hurt.

the ONLY bright side is that it is tax deductible.

[KCwife]

the ONLY bright side is that it is tax deductible.

I am not so sure about that.

according to our accountant it was: job search and move. and we did it.

[KCwife]

The MS4's question:
"I am currently a 4th year medical student graduating in May and moving to Iowa for residency. I have heard that the application, travel and interview expenses for residency are tax deductible. Is this information correct, or are these expenses only deductible if you are already employed in the field searching for another job.

Thanks for your help!"


The CPA's answer:

"My understanding of the rules is that these types of expenses are only deductible once you've established yourself in a trade or business. So the costs you incur in connection with obtaining a first job generally aren't deductible.

First year doctors can claim a few deductions, however. Moving expenses incurred in connection with moving from your home to your new place of business are deductible, as long as you move more than 50 miles. Allowable costs include shipping your household items and traveling to the new city.

You might also be eligible for the "Lifetime Learning Credit" which lets you claim a tax credit equal to 20% of the first $10,000 you spent on tuition, books, and fees during the calendar year. By claiming this tax credit, you would increase your refund next year by up to $2,000!!

Good luck with your medical career."

http://pub38.bravenet.com/forum/3178427957/fetch/438942

Jesher- I believe you are correct for an attending, but an inten MS4 or intern cannot claim the interview expenses, just the moving expenses.

We did both -- deducted one time and not the other -- with both times running it by a CPA.

We didn't deduct interview expenses for the first match. All expenses were incurred in a year that DH did not have any income (up through December of MS4). We did deduct the interview expenses the second time he went through the match. He had been out of medical school for over a year at that point and had an income to take work-related expenses against. And working in his field? I can't remember if that was one of the things I discussed w/ the CPA, that he could deduct for switching in his field. Only downside was that he interviewed November through January and the expenses were split between calendar years which meant we had to exceed 2% of AGI both years. I don't know how we could have lumped all of the expenses in one year or another given the timing of the interview season. That's just what we did, probably a good idea to get your own advice on it.

re: loans. The first time through, since he was still in medical school, I think he took out extra loans for that quarter. Just the regular Direct Loans, or whatever the program is.

I agree with Cheri about combining trips. It is also worth it to do a multi-city ticket in some cases. For instance, LA-Boston-Atlanta-LA might be less than out and back from LA to Boston and then LA to Atlanta.

Absolutely think about friends or family in the area, as long as a good night's sleep can be had. Sometimes you can find other medical students in that city to stay with.

We used hotwire for car rentals in places that Super Shuttle or hotel shuttles weren't practical. After programs extend an interview, they will sometimes provide you with helpful travel info.

Residency is conisdered education, and therefore the travel and lodging are not deductible.




If you want to know the tax code for it, I can tell you.

okay - don't tell on us.

hell, at this point we're probably past the number of years they can track us down!

Well, poo! I'll pretend I didn't hear that Matt.

If I were to go before the IRS agent, when an audit was done, I would actually argue that it could be deducted, as it is "...away from home in the pursuit of a trade or business"

[DCJenn]

Which is why, when he's all done, Matt will have 400+ people automatically begging him to be the "Dawkter's accountant"

If you had any doubt about opening your own shop? Dude, you're hired. Plus you have miltary experience. yeah, baby. deduct our PCS and laugh at the IRS.

and if you need to hire any lawyers to join forces to defend us...we have plenty of those, too.

I can only provide Methadone at this point. Not that it doesn't have it's place- but...

Jenn

[ides]

We took the residency interview/relocation loan. It hurts, but there would be no way we could afford it any other way. DH applied to 30+ residencies and interviewed at 20. DH went all over the country and we have no family here either, so other than using the discount web sites for flights and hotels we had to foot it all. As well, we didn't find it too easy to lump interviews in regional areas together. We were able to do a little of it, but a lot of the programs in the same cities had the same dates for interviews a week a part at a time, so it just wasn't possible. The whole process including suit and clothing cost us around 12k. We used the rest of our loan for moving to residency. We didn't have any savings or parental support, so although painful, it was our only option. We are now hoping to pay off the residency loan during residency since we both have incomes now then start with the giant med school loan after residency. Sigh, so much debt, so little cash! My advice, do what you need to, don't close off options due to expense. Good luck!

We took the loans too. It was worth it not to have to stress...the process includes enough of that already!!