Tax Deductible Expenses for Therapists
Therapists in private practice can deduct various itemized expenses related to business maintenance and professional development.
To help, we’ve compiled a list, and a free spreadsheet (SUBSCRIBE HERE) to help ease some of the burden of running an independent practice.
We aren’t tax professionals. As always, consult with your personal accountant before submitting your taxes.
So, which business and professional expenses are tax deductible?
These expenses are related to your office, such as furniture, wifi, cleaning services, etc.
Here are a few examples of these items:
Office Supplies (Paper, Printer Ink, Etc.)
Miscellaneous Office Needs (Tissues, Magazine Subscriptions, Hand Soap, Toilet Paper)
Cellular Phone and Data
Office Housekeeping + Maintenance
Electronic Health Software (Software + Electronic Insurance Claims)
Professional & Educational Expenses
Yes, Continuing Education Units are tax deductible! So are other educational materials and trainings, such as conferences, workshops, and consultation. Below are a few examples of these:
Professional Liability Insurance (Rental + Commercial)
Professional Association Fees
Professional Continuing Education (Books, Conferences, Trainings, Consulting Fees)
Professional Services Fees (Accounting + Legal)
Profession Reference Material
Thankfully, your investments in marketing is 100% tax deductible. Database memberships
(such as Psychology Today), website hosting, and business cards are some examples. Here are a few others:
Professional Profiles Online (e.g Psychology Today, ZocDoc)
Professional Website Domain Hosting (e.g. GoDaddy, Namecheap, Squarespace)
Online + Print Professional Advertising (Google Adwords, Facebook ads)
Print + Digital Materials + Reference Materials (Business cards, Brochures, Fliers, etc.)
Professional Social Media Management
Branded Merchandise + Product Development
Credit Card Interest + ATM Fees + Bank Fees
Independent Contractor Payments and Employee Salaries
Employer-Equivalent Portion of Self-Employment Tax
Retirement Investments + Deposits (Self-Employment Retirement Plan SERP)
Personal Therapy + Supervision
Professional Travel Expenses (Metrocard, Metro North/NJ Transit, Uber, cabs)
Business Related Meals (50% deductible)
Health + Dental Insurance + Co-pay + Rx
The profit remaining after deducting these business expenses is your net profit - your taxable income - that may be subject for additional deductions (like self-employment tax breaks), based on the current federal, state, and local tax laws.