This is a question I really struggled with. For many months it didn’t even occur to me not to work while on sabbatical. Like me, you have probably been working very hard for a very long time. You may not remember the last time you didn’t have a job of some kind, whether it was babysitting or working at a grocery store in high school.
The idea of not working may seem so foreign to you that you haven’t really even considered it.
But as I started to run the numbers, I realized that I could make just as much money by picking up some extra shifts before I left as I could be working while on sabbatical. And the idea of having several months without any obligations was appealing, especially because one of my main sabbatical goals was to spend time with my kids.
The first part of the question of “Should you work during sabbatical?” is whether it aligns with your sabbatical goals.
This doesn’t have to be a yes or no answer. Working part time, or for part of your sabbatical, or even full time might fit your goals. Just try to be thoughtful and realistic about how you want to be spending your time.
The second part of the question is getting down to the nitty gritty: do you have to work?
Before you throw yourself into work during a sabbatical, let’s look at the financial implications of working vs not working.
There are two main financial aspects to working on sabbatical: The marginal tax rate and how much you can earn on sabbatical.
Marginal tax rate: This is the amount you’re taxed for every additional dollar earned. For excellent posts about marginal tax rates, check out the Physician on Fire and the White Coat Investor. The idea is that the less you earn, the more you keep of each dollar you make. The federal tax rate “buckets” for 2022 are included below. Keep in mind this is only FEDERAL taxes; this does not include state taxes (which may be progressive or flat) or payroll deductions. Also keep in mind that these numbers are on TAXABLE income.
To get a rough idea of your marginal tax rate:
- Determine your income during your sabbatical year without working during your time away.
- Subtract the standard deduction ($25,900 for married filing jointly in 2022)
- Subtract any pre-tax (401k/403b/457) retirement contributions
- Look for the marginal tax bracket you’ll be in.
- Add a percentage for state tax (often around 5%).
- Determine how much you’re likely to make if you work while on sabbatical
- Multiply that amount by your federal marginal tax rate + state tax rate.
- Subtract that amount from the amount your original sabbatical income estimate
You now know how much each additional dollar is going to add to your income. Sometimes working for $150/hr might seem worth it, but working for $106 at a marginal tax rate of 24% plus a 5% state tax rate might not be worth your time.
| Tax Rate | Taxable Income(Single) | Taxable Income(Married Filing Jointly) |
| 10% | Up to $9,950 | Up to $19,900 |
| 12% | $9,951 to $40,525 | $19,901 to $81,050 |
| 22% | $40,526 to $86,375 | $81,051 to $172,750 |
| 24% | $86,376 to $164,925 | $172,751 to $329,850 |
| 32% | $164,926 to $209,425 | $329,851 to $418,850 |
| 35% | $209,426 to $523,600 | $418,851 to $628,300 |
Married, filing jointly
| Tax rate | Taxable income bracket | Taxes owed |
| 10% | $0 to $20,550 | 10% of taxable income |
| 12% | $20,551 to $83,550 | $2,055 plus 12% of the amount over $20,550 |
| 22% | $83,551 to $178,150 | $9,615 plus 22% of the amount over $83,550 |
| 24% | $178,151 to $340,100 | $30,427 plus 24% of the amount over $178,150 |
| 32% | $340,101 to $431,900 | $69,295 plus 32% of the amount over $340,100 |
| 35% | $431,901 to $647,850 | $98,671 plus 35% of the amount over $431,900 |
| 37% | $647,851 or more | $174,253.50 plus 37% of the amount over $647,850 |
https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
Amount you earn on sabbatical
You may be planning to continue to earn clinical income while on sabbatical either remotely or by working in-person in some of the countries that allow US physicians to work without going through another licensing process. Most of these opportunities pay significantly less than you would make in the US. In New Zealand, for example, you may make $600-1200/day.
If you don’t plan to work clinically, you’ll likely be looking for remote work. This would include chart reviews, legal work, or prior authorizations for an insurance company. Some of these have restrictions on working while abroad, so be aware. While legal expert work often pays well, most other clinical jobs that can be done remotely will pay around $100-200/hr, usually on the lower side of that spectrum.
DO NOT DECIDE whether to work on sabbatical until you know:
- How much you can make on sabbatical
- How much you can make before you leave
- How much you need for your sabbatical year
- The gap between what you have and what you’ll have if you don’t work
- How much you can make by working extra before you leave
Now you should know the honest answer to whether you have to work or not. If the answer is no, decide based on your values. If the answer is yes, try to find a job that aligns with your values.
Don’t work just because you’ve been working for so long that you’re not sure what you would do with yourself if you didn’t work. You’re a doctor. You’re a smart, interesting person.
Think of what you want to spend all that brainpower on while you give it a break from clinical medicine.
I’m still trying to figure out how I want to spend my sabbatical time, but the freedom from daily work obligations for the first time in decades has its own benefits. I’ll be sure and keep you all updated!