Taxes

Tax Season Checklist for Sole Proprietors

Headshot of Bryce Warns
July 22, 2022
Bryce Warnes
Content Writer
Young Black couple paying their bills over laptop

Even if your therapy practice is small, tax season can feel hectic. It’s never too early to start preparing.

Check off the applicable items below and track everything you need for you or your accountant to file your taxes.

Basic information

  • Your full legal name and date of birth
  • Your social security number (SSN)
  • Your Employer Identification Number (EIN)
  • Last year’s tax return*
  • Last year’s total adjusted gross income
  • Your IRS Self-Select Pin from last year’s filing
  • Total amount paid in quarterly taxes during 2021
  • Bank account information: account and routing numbers

Tax forms 

  • Form W-2 (if you are an employee as well as a business owner) 
  • Schedule K-1 (if you are a member of a partnership or S corporation)
  • Form 1099 (if you paid a contractor during the year)
  • Form 1095 (Health Insurance Marketplace statement)
  • Form 1098 (Mortgage Interest Statement)

Financial statements

  • Annual profit and loss (P&L) statement

Receipts and financial records*

  • Advertising and marketing 
  • Accounting and bookkeeping services
  • Business meals
  • Business trips
  • Bank fees
  • Vehicle use (mileage rate or actual expenses)**
  • Membership fees
  • Continuing education
  • Office rent (including home office)**
  • Office supplies
  • Books and therapeutic aids
  • Personal therapy
  • Square, Stripe, and other payment processor fees
  • Booking and billing software


* You or your accountant will use these to add up all your tax deductible expenses for the year. They must be kept after you file taxes, to back up your claims in the event of an IRS audit.

** For more details on how to deduct this expense on your tax return, see our complete list of tax deductions for therapists.

Helpful articles from Heard

One of the best ways to prepare for tax season is to pay your estimated quarterly taxes accurately and on time. When you join Heard, we’ll let you know how much to pay to the IRS and your state each quarter. Schedule a free 15-min consult.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

Bryce Warnes is a West Coast writer specializing in small business finances.

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