Private practice therapists are eligible to deduct several business expenses that qualify as deductions on tax returns. First and foremost, any costs directly associated with providing therapy, such as renting office space, purchasing equipment, and utilities, are deductible. Additionally, expenses towards continuing education required to maintain your professional license, membership in a professional organization, and legal and professional fees are also considered deductible.

Yes, if you use part of your home exclusively for providing therapy, you can claim the home office deduction. Depending on your entity type, the IRS allows for two calculation methods: the simplified option and the regular method. The simplified method assigns a standard deduction based on the square feet of your office space, or the percentage of your home used for business purposes, while the regular method requires you to calculate the actual expenses associated with your home office.

Therapists who use their vehicles for work-related activities, such as visiting clients or driving to different offices, can deduct these costs. The IRS rules and regulations around business use of vehicles are very strict and you should speak to your tax professional and be very up to date and understanding of these regulations prior to trying to claim business use of vehicle expenses. The IRS allows for two methods: the standard mileage rate method and the actual expense method. Keeping detailed records of your work-related mileage or receipts of all your vehicle-related expenses is crucial for this deduction.

Partner with us at Therapeutic Tax Solutions for not only tax preparation but also for bookkeeping for therapists. Our expert bookkeeping services ensure the bookkeeping is done right, meaning you’re not missing out on applicable tax deductions! With our tax preparation services, you can regularly meet with us to review and discuss applicable and allowable tax deductions for therapists and to look for bigger tax write-offs to ensure you are maximizing your benefits and adhering to all applicable laws.

Specialized tax professionals understand the specific needs and challenges of your field, enabling more targeted and effective strategies that can lead to significant financial benefits. Your tax preparer can help you itemize your deductions or claim exemptions and credits correctly so that fewer hang ups occur with your paperwork.

We recommend meeting with your advisor quarterly and at least annually to review your financials, adjust strategies as necessary, and prepare for upcoming payments. This keeps your practice financially healthy, proactive, and tax-compliant to hopefully prevent audits (or manage them effectively if they do occur).

The purpose of this meeting is to determine how best we can serve you by discussing your biggest challenges and pain points in your business. We'll work together to determine what you can do to solve those problems and challenges and you can leave this meeting with actionable steps to solve them. Come prepared to this meeting by having a deep thought about your biggest challenges, pain points, and what keeps you up at night so we can discuss in the Discovery Meeting. We’ll be able to take what we learn in this meeting and create customized services specific to your needs through an array of boutique solutions we offer therapists!