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Lessons from tax experiences
By Vittorio Mena, OD, MS
May 28, 2025
Over a month has passed since the tax deadline of April 15, making this the perfect time to reflect on some revealing tax experience statistics.
In 2024, a whopping 93% of tax returns were filed electronically, and an impressive 56% were completed by a tax professional. That means that a notable 44% of Americans took on the task of filing their taxes without any professional assistance.1
The Refund Game: Are You Winning?
It’s essential to note that 64% of Americans received a tax refund this year. That leaves 36% who either didn’t receive a refund or had to pay back the government. The average tax refund for 2024 was $3,138, which is a slight decrease of $29 from last year.2
Now, consider the implications of these statistics. Many individuals view tax refunds as a windfall of “free” money, often leading to spontaneous shopping sprees or extravagant vacations. Others, however, may use these funds to pay down credit card debts or essential expenses.
The Truth About Tax Refunds
Receiving a tax refund might feel great, but it also signifies that you overpaid your taxes throughout the year. Essentially, the IRS is giving you back the money you lent them—interest-free. A smaller refund, or none at all, means you’re effectively keeping more of your paycheck each period.
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This leads to the question: do you want a large refund? Often, it’s better to manage your finances more efficiently and utilize that money throughout the year. Consider the following opportunities you might miss out on by overpaying:
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Building an Emergency Fund: Having readily available cash can save you during unexpected financial challenges and contribute to your long-term financial health through compounding interest.
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Reducing Debt: Paying off debts promptly minimizes interest accumulation, freeing you from financial burdens.
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Investing Wisely: Whether short-term or long-term, investing can enhance your wealth potential.
How Can You Adjust Your Withholding?
To ensure you aren’t overpaying taxes, adjust your tax withholding with the W-4 form through your employer. Interested in tracking your total income tax? Refer to your 1040 form to see how much of your earnings go to taxes. For details on adjusting your federal income tax withholdings, the IRS offers a handy tax withholding estimator, which you can find HERE.
Optometrists: Are You Missing Out on Deductions?
As optometrists, many of us may overlook valuable deductions that could save us money. Since finances and taxes can be complex, hiring a professional might be the best way to maximize your savings. Some reputable firms specializing in optometric accounting include:
- The Williams Group – Tax planning and payroll services for optometry.
- Olsen Thielen CPAs and Advisors – Expert accounting for optometry practices.
- Thomas Brown CPA – Specializing in vision care accounting.
- Delucia CPA – Catering to optometrists’ accounting needs.
- Heyer – Services tailored to optometrists.
The Pillars of Financial Health: Bookkeeping
A fundamental aspect of running a successful optometry practice is bookkeeping. It’s alarming how many practices operate without a clear understanding of their finances, including profit and loss statements. Knowing your patient count and return on investment per patient is essential for sustainable financial health.
Familiarizing yourself with monthly statements, payroll management and various financial statements (like cash flow and balance sheets) is crucial. Many solo practitioners try to juggle too many roles—doctor, owner, manager—which can lead to burnout and potential lost revenue.
For those willing to tackle bookkeeping themselves, tools like Intuit QuickBooks and FreshBooks can be helpful. If you’re seeking professional help, consider contacting:
- Books & Benchmarks – An IDOC group managed by Nathan Hayes.
- Bookkeeping for Optometry – Operated by The Williams Group, led by Amanda Collaso.
- Profit Matters – Specializing in optometrist accounting services.
- For Eyes Bookkeeping – Managed by Wade Weisz, OD, an optometrist like us.
As simple as it sounds, outsourcing bookkeeping services can often be fully tax-deductible!
Weighing Your Options: Tax Withholdings
Remember, with tax withholdings, different financial strategies come with unique pros and cons. It’s always wise to consult a professional to help avoid costly missteps. When selecting a tax professional, interview a few candidates to find someone who understands the nuances of optometry. The closer they are to our field, the better they can assist you.
Stay tuned for next month’s article, where I’ll explore the pros and cons of hiring a financial advisor for your practice!
Resources
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Vittorio Mena OD, MS, is the sports vision director with Optical Academy. Dr. Mena is also an Optometric Financial Coach, with Series 6 and 63 investment licenses and Series 2-14 life and variable annuity licenses. To contact him: menavitt@gmail.com
