This is part of Heard's guide to taxes. Find the full tax resource center here.

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Many contract therapists work on a part-time basis for group practices, mental health startups, and employee assistance programs (EAPs).

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If that sounds like you, it’s your job file and pay taxes on the income you earn with help from IRS Form 1099-NEC. 

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Here’s how to file taxes as a 1099 contractor therapist. For more on managing your practice's taxes year-round, visit Heard's Tax Hub.

Who needs to file taxes for self-employment income?

You are required to report any income you earn as a contractor on your individual tax return using IRS Form 1040.

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Any company (or individual operating as a business) that hires you as a contractor and pays you $2,000 or more in the course of the year is required by law to submit a Form 1099-NEC.

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The $2,000 limit is relatively new. For all tax years prior to 2026, it was $600. 

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Even if you do not receive a Form 1099—whether because a company paid you less than $2,000 during the year, or because they failed to send you one—you must report the income you earned on your tax return, and pay taxes on it.

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What is Form 1099?

Form 1099-NEC reports the money a company paid you during the course of the year. When the company fills it out, they create two copies. They send Copy A to the IRS. They send Copy B to you.

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If you operate as a corporation—either because you’ve registered as a single-member S corporation, or because you’ve registered as an LLC that files as an S corporation—the company may not be required to send you a Form 1099. Check with your accountant if you're not sure — or read our Complete S Corp Guide for Private Practice Therapists to see whether an S corp makes sense for your practice.

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Remember, even if you don’t receive a Form 1099, you are legally obligated to report the income you earned from the company. For a full breakdown of how these two forms relate, see W-9 vs. 1099: What Therapists Need to Know.

Do part-time contractors need to pay quarterly taxes?

If you’re an individual, and you’ll owe over $1,000 in taxes for a particular year, you are required to pay quarterly taxes. 

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The $1,000 threshold applies to the total of your self-employment income (as an independent contractor therapist) and any income you earn as an employee.

How do you file your 1099 therapist contract?

Many therapists new to self-employment wonder how to file their 1099 therapist contracts. The problem is, this is the wrong question to ask.

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A 1099 therapist contract is the contract you sign with a client—a group practice, mental health startup, or EAP—in order to provide services. This legally binding contract is between you and your client; you do not need to submit it to the IRS.

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A Form 1099-NEC, on the other hand, is the document your client fills out after the end of the year, submitting one copy to the IRS and sending one copy to you. You do not need to submit your copy to the IRS because your client has already submitted your form.

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What you do need to do is calculate your net income (including earnings from all 1099 therapist contract clients, which are reported on Form 1099-NEC), calculate your federal taxes, and file your income tax return.

How to calculate federal taxes you owe as an independent contractor therapist

In order to calculate the taxes you owe for the year, you’ll first need to figure out what your total taxable income is. 

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Two ways to do that:

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1. If you have a bookkeeping system in place (either accounting software you use, or a bookkeeper who works for you), simply generate an annual profit and loss statement covering the tax year in question.

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2. If you don’t have a bookkeeping system in place, complete Schedule C, Form 1040. You’ll need to enter all the income you’ve earned this year, as well as your deductible expenses. For a full walkthrough, see our Therapist Tax Guide: How to Fill Out a Schedule C. You can use it to calculate your taxable income.

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Once you have your taxable income:

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1. Multiply it by your income tax rate. Your income tax rate is determined by your tax bracket. Use an online calculator to determine the total amount you owe.

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Example: You earned $50,000 after deductions in 2025. Your total income tax owing is $5,914.00.

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2. Multiply it by the self-employment tax rate. The self-employment tax rate is 15.3%.

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Example: You multiply your taxable income of $50,000 by 0.153 to get $7,650.

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3. Add the results of Step 1 and Step 2 to find the total amount you must pay on your self-employment income.

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Example: Add $5,914 (your income tax) to $7,650 (your self-employment tax). Your total federal tax burden is $13,564.

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2027 tax deadlines for 1099 therapists

If you’re a 1099 therapist filing your taxes using Form 1040, your tax filing deadlines for 2027—all of which apply to the 2026 tax year—are as follows.

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• January 31st, 2027: Deadline to receive Form 1099-NEC from clients.
• March 15th, 2027: S corporation tax returns (IRS Form 1120-S) and partnership tax returns (IRS Form 1065) are due. This is also your deadline to file for an extension for these entity types.
• April 15th, 2027: Individual tax returns (Form 1040) due. This is also the deadline to file for an extension.
• September 15th, 2027: The final deadline for S corp and partnership tax returns, if you successfully filed for an extension.
• October 15th, 2027: The final tax deadline if your sole proprietorship successfully filed for an extension.

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The 2027 quarterly tax deadlines are:

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• April 15, 2027: Deadline for Q1 estimated tax payments
• June 15, 2027: Deadline for Q2 estimated tax payments
• September 15, 2027: Deadline for Q3 estimated tax payments
• January 17, 2028: Deadline for Q4 estimated tax payments

How to pay your taxes as an independent contractor therapist online

The easiest way to pay your taxes online is to enroll in the Electronic Federal Tax Payment System (EFTPS).

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The EFTPS is your online portal for federal tax payments. It allows you to schedule automatic payments, too, reducing your likelihood of missing a tax deadline.

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To enroll in EFTPS, you’ll need:

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• An Employer Identification Number (EIN)
• A business checking account

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You can learn more from the EFTPS website.

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In some cases, even if you’re working as a contractor, you may find yourself hiring contractors (or subcontractors) of your own. Then it’s up to you to submit Form 1099s to them as well as the IRS. Learn how to hire independent contractors for your therapy practice.

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