Frequently Asked Questions for Therapists in Private Practice

About Heard & Pricing

1. How much does Heard cost, and what are the pricing plans?

Heard's pricing is straightforward and all-inclusive — no surprise fees or hourly charges for talking to your support team. Three plans are available, billed monthly or annually (annual saves 15–20%):

• Lite: $149/month (or $129/month billed annually) — Done-for-you bookkeeping and quarterly tax support for solo sole proprietors. Includes monthly bookkeeping with a dedicated team, tax deduction tracking, monthly financial reports (P&L, income/expense), quarterly tax estimates and payment guidance, S corp election guidance, and group onboarding sessions. Annual tax filing is not included but can be added as a one-time $750 fee when you're ready.
• Essential: $199/month (or $169/month billed annually) — Everything in Lite, plus personal income tax prep and filing (Form 1040), joint tax return support, and document management with automated filing reminders.
• Premium: $299/month (or $255/month billed annually) — Everything in Essential, plus business income tax filing (Form 1120-S for S corps), payroll setup and management via Gusto ($39/month + $6/month per additional employee), S corp compliance audit, and salary guidance.
  
  There are no à la carte or tax-only options — Heard is a fully integrated bookkeeping and tax service.
  
  See full pricing ->
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2. How is Heard different from QuickBooks or a traditional CPA?

Heard is an all-in-one financial solution built specifically for therapists — combining smart technology with expert human support to eliminate the gaps left by other options.
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vs. QuickBooks: QuickBooks is DIY software — you're the bookkeeper. Heard offers an intuitive platform plus a team of bookkeepers and CPAs who handle the heavy lifting of your practice finances. We automate transaction imports and review everything daily, flagging only what needs your attention. Heard is also built from the ground up for mental health professionals — we know your income streams (Headway, private pay, supervision, etc.) and your most commonly missed deductions.
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vs. a traditional CPA: Traditional CPAs are reactive — they see you at tax season. Heard provides year-round support with real-time dashboards, quick response times, and availability Monday through Friday. Our entire team specializes in mental health finance. And unlike a CPA firm, we combine expert guidance with live visibility into your income, expenses, and tax estimates — in one integrated platform.
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3. Can I purchase tax filing services only, without bookkeeping?

No. Heard only offers bundled bookkeeping and tax services — no tax-only or à la carte options.

Here's why: our tax preparation is powered directly by our bookkeeping. By managing your books year-round, our team ensures every transaction is categorized correctly — making your quarterly estimates and annual tax filings clean, accurate, and audit-ready. We also provide year-round financial clarity, not just end-of-year filing: real-time profit and loss tracking, automated deduction capture, and automated quarterly tax payments. While we understand some practitioners have existing bookkeeping systems, our integrated model is designed to take the entire financial burden off your plate.

What's Included

4. What's actually included in my Heard subscription? Do you file my taxes for me?

Yes — Heard is a full-service solution that handles everything from start to finish: bookkeeping, tax preparation, and filing.

What's included:

• Software + dedicated team: A user-friendly dashboard plus access to a team of bookkeepers and CPAs who specialize in mental health practices
• Real-time bookkeeping: You connect to your business bank accounts, automatically track transactions, and our team categorizes everything to keep your records accurate and tax-ready
• Full-service tax filing — we prepare and file your annual returns, and guide you on quarterly payments:
  • Quarterly tax estimates: We calculate what you owe each quarter and provide guidance on submitting payment to the IRS and state agencies
  • Annual tax returns: We prepare and file your federal, state, business (Schedule C or S Corp), and personal (Form 1040) returns
  • Multi-state support for virtual practice complexities
  • Joint filers included at no extra chargeilers included at no extra charge
• Tax payment guidance: We provide direct payment links and clear instructions for submitting payments to the IRS and state tax authorities, so you always know what's due and when.

See how it works →

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5. How does the bookkeeping process actually work? Is it automated?

Our bookkeeping is highly automated — combining smart technology with a dedicated team to minimize manual work while ensuring accuracy.

How it works:

1. Secure bank connection: During onboarding, you connect your business bank and credit card accounts using Plaid (industry-standard, read-only access). We can view transactions but cannot move money.
2. Automatic transaction imports: All business transactions flow into your Heard dashboard in real time — no manual entry, spreadsheets, or receipt tracking required.
3. Expert categorization: Your dedicated bookkeeping team reviews and categorizes transactions daily, ensuring accuracy and maximizing tax deductions specific to mental health professionals.
4. Minimal input from you: For most transactions, you do nothing. If our team needs clarification (like whether an Amazon purchase is business or personal), they flag it in your dashboard. You log in, answer a quick question, and you're done.

The result: your books stay accurate and tax-ready with minimal effort on your part.

6. Do you file personal taxes too? Can you handle my spouse's W-2 income?

Yes, absolutely. We know many of our members file taxes jointly, and Heard is designed to be a complete, all-in-one solution for your household's tax needs.

Our service packages include filing for your business and your personal tax return. If you file jointly, we incorporate your spouse's income — including W-2 income from an employer — into your annual tax filing at no additional cost. However, we do not support spouse filing if you are married and filing separately.

7. I have multiple income sources (W-2 job, 1099s from Headway/Grow Therapy/Spring Health). Can you manage all of it?

Absolutely. This is very common for therapists building a side practice, transitioning from W-2 employment, or receiving income from multiple platforms. Heard is designed to handle this complexity.

How we manage it:

• Dedicated practice bookkeeping: We focus on your private practice income by linking your business bank account. This automatically tracks all 1099 income streams and business expenses, giving you a clear, real-time picture of your practice's profitability.
• Comprehensive tax filing: We handle your complete tax picture — integrating your practice's profit and loss with W-2 income and other sources to prepare full federal and state tax returns.
• Accurate quarterly estimates: By viewing all your income streams together, we provide accurate quarterly tax estimates to help you set aside the right amount and avoid IRS underpayment penalties.

8. What kind of support do I get? Who do I talk to if I have a question?

Heard's support is accessible, responsive, and human — the opposite of an unresponsive accountant.

Your team: You're supported by a team of bookkeepers and tax and accounting specialists who work collaboratively on your account, so you're never stuck waiting on one person.

How to reach us:

• Secure messaging: Our primary channel through the Heard platform — perfect for questions and tracking conversations
• Phone support: Direct phone access for questions when you prefer to talk to a person
• Onboarding and education: Live group webinars, plus a library of educational resources

Our commitment: While most CPAs and accounting firms charge by the hour to respond to emails, messaging support with Heard is unlimited and included in your membership. We generally respond to all messages within two business days, and if we don't know the answer right away, we'll research it and follow up.

9. I'm behind on my bookkeeping and haven't paid quarterly taxes. Can you help?

Yes — this is the #1 reason therapists come to Heard. You're not alone.

We'll catch you up completely. Our bookkeeping team goes back to the beginning of your tax year and categorizes every transaction once you link your bank account. This typically takes a few weeks, and your involvement is minimal.

You'll never fall behind again. Once you’re caught up, our platform makes it easy to accurately calculate your quarterly tax estimates, reminds you of deadlines, and provides direct payment links to the IRS and state portals. Many clients set it to autopay and never worry about it again.

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Business Structure

10. I'm just starting my practice. What business structure should I choose?

This is one of the most common questions from new practitioners. While we can't provide legal advice, here's what we see across thousands of therapists:

• Sole Proprietor: The default structure if you're practicing independently as a 1099 contractor. Simple to start, but offers no legal separation between personal and business assets.
• LLC/PLLC: Many practitioners choose this for liability protection, which creates legal separation between business and personal finances. Some states require licensed professionals to form a PLLC — check your state's requirements.

Our CPAs can help evaluate the best option for your situation once you're onboard. As your practice grows, we'll also advise on S Corporation election for potential tax savings — typically beneficial around $80,000–$100,000 in net income.
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The most important first step, regardless of structure: Open a separate business bank account immediately. Mixing business and personal funds makes bookkeeping difficult, causes missed tax deductions, and creates audit complications. A dedicated business account is the foundation of Heard's service — allowing our system to accurately track income and expenses for clean, tax-ready records. Learn more about opening a Heard Banking* account.
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See our resource center for launching your practice →

11. When should I become an S Corp, and can you help with the process?

When to consider S Corp status: The general benchmark is when your practice's annual net profit approaches $80,000–$100,000.

Here's why it matters: as a sole proprietor or single-member LLC, all net profit is subject to self-employment taxes (15.3%). With S Corp status, you pay yourself a reasonable W-2 salary — only this salary faces self-employment taxes. The remaining profit is taken as distributions, which aren't subject to self-employment tax. This typically results in $6,000–$7,000 in annual tax savings.
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How Heard helps: Yes — we handle the entire process as part of our Premium plan:

• Analysis: Our CPAs review your financials to confirm S Corp election makes sense and determine optimal timing
• Filing: We handle all IRS paperwork, including Form 2553
• Payroll: We set up and manage your payroll (required for S Corps) via Gusto, and help determine a salary that meets IRS guidelines — typically 40–60% of net profits
• Ongoing support: We manage bookkeeping, quarterly estimates, and annual tax filings to keep you compliant

Most practitioners start on our Essential plan. As income grows toward that threshold, we'll proactively discuss upgrading to Premium for the S Corp transition.
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Talk to a specialist about S Corp →

12. How does Heard handle payroll for an S Corp?

Proper payroll management is essential for S Corp compliance. Our Premium plan is an all-in-one solution that handles S Corp payroll, bookkeeping, and taxes seamlessly.
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How we support you:

• Determining reasonable salary: The IRS requires S Corp owners to pay themselves W-2 wages before taking distributions. Our CPAs guide you in setting an appropriate salary — typically 40–60% of net profits — to ensure compliance while maximizing tax savings.
• Integrated payroll provider: We partner with Gusto, a leading payroll platform, to manage everything. Payroll data syncs automatically with your bookkeeping for accurate, tax-ready records.
• Included in Premium: Payroll services are a core component of our Premium plan. We handle the entire Gusto setup and management.
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By bundling payroll with bookkeeping and taxes, we ensure your W-2 salary, tax withholdings, and distributions are handled correctly — so you can pay yourself with confidence and stay fully compliant.

13. Does Heard support group practices?

Yes. Heard's Premium plan is built for group practices — practices where one owner employs or contracts multiple therapists under one entity. Premium includes full bookkeeping, annual tax filing (including Form 1120-S for S corps), S corp compliance, and payroll management for the owner and additional clinicians via Gusto at $6/month per person.
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Important eligibility note: Heard currently supports single-ownership group practices. Multi-owner partnerships or co-owned practices (where two or more people share ownership) are not currently eligible. If you're unsure whether your practice qualifies, our team can assess during a free consultation.
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Book a free consultation →

Taxes

14. How much should a therapist set aside for taxes in 2026?

A common starting point is 25–30% of net self-employment income. The exact amount depends on your total income, filing status, deductions, and business structure.
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Sole proprietors pay self-employment tax (15.3%) on top of federal and state income tax — which is why therapists are often surprised by their first tax bill. S Corp owners typically have a lower effective rate because self-employment tax only applies to their salary, not their full business profit.
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As a Heard member, our tax team reviews your full financial picture and provides personalized quarterly estimates — so you're always setting aside the right amount, not guessing.

15. What are the 2026 quarterly and annual tax deadlines for therapists?

2026 quarterly estimated tax deadlines (sole proprietors and LLCs):

• Q1: April 15, 2026
• Q2: June 15, 2026
• Q3: September 15, 2026
• Q4: January 15, 2027

Annual filing deadlines:

• Sole proprietors / single-member LLCs: April 15, 2026 (or October 15 with extension)
• S Corporations (Form 1120-S): March 16, 2026 (or September 15 with extension)

If you owe more than $1,000 in federal taxes for the year, the IRS requires quarterly payments. Heard's platform sends deadline reminders and provides direct payment links to the IRS and state portals. Many members set up autopay so deadlines are never missed.

16. What are the best tax write-offs for therapists in private practice?

Therapists in private practice can deduct most ordinary and necessary business expenses, including:

• Office: Rent, utilities (business portion), and home office deduction if applicable
• Technology: EHR/practice management software, telehealth platform, scheduling tools, phone and internet (business-use portion)
• Professional costs: Licensing and credentialing fees, professional liability (malpractice) insurance, professional association memberships
• Education: Continuing education, supervision fees, conferences, and related travel and materials
• Marketing: Website, directories like Psychology Today, advertising
• Financial services: Bookkeeping and tax preparation fees (including your Heard subscription)
• Retirement: Solo 401(k) or SEP-IRA contributions made through your practice

Heard's bookkeeping team categorizes your expenses throughout the year so nothing is missed at tax time.
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See the complete tax deductions guide for therapists →‍
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Miscellaneous

17. Can I deduct my own personal therapy sessions as a business expense?

Generally, no. Personal therapy for your own mental health and wellbeing is considered a personal expense by the IRS and is not deductible as a business expense — even for therapists. However, therapy or supervision that directly relates to your professional development or maintaining your clinical skills (such as personal therapy required as part of a clinical training program) may be deductible. The line can be nuanced, and Heard's CPAs can help you assess your specific situation.

18. I moved to a new state but my LLC is in my old state. What do I do?

This is a common situation for telehealth therapists and therapists who relocate. Your options generally are:

1. Foreign qualify your LLC in your new state — registering your existing LLC to do business there while keeping the original state registration
2. Dissolve and re-form a new LLC in your new state, which may be simpler depending on the states involved
3. Do nothing temporarily if you're only practicing briefly in the new state — though this carries compliance risk

The right answer depends on both states' rules, your license situation, and whether you still have clients or business in the old state. Heard's CPAs can assess your situation and help you understand the tax and compliance implications — contact us after you've spoken with a business attorney about the legal side.

19. I earn income from multiple states. Can Heard help me?

Yes. Multi-state income is common for telehealth therapists licensed in multiple states or seeing clients across state lines. Heard's Essential and Premium plans include multi-state tax support — our tax team prepares and files returns for every state where you have taxable income.
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We stay current on telehealth nexus rules (which states require registration and filing based on where your clients are located), and we factor each state's obligations into your quarterly estimated tax calculations so you're never underpaying to a specific jurisdiction. If you're unsure which states you owe taxes in, our CPAs can assess your situation during onboarding.
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Book a free consultation →

20. Is Heard worth it for a solo therapy practice making $100,000 a year?

For a therapist netting $100K annually, Heard typically pays for itself many times over. Here's how:

• Missed deductions recovered: Our team categorizes every transaction and knows the therapy-specific deductions generalist accountants miss — CEUs, supervision, practice management software, malpractice insurance, and more. Recovering even $3,000–$5,000 in missed deductions offsets the annual Heard subscription cost.
• S Corp savings: At $100K net profit, an S Corp election typically saves $6,000–$7,000 in self-employment taxes per year. Heard's Premium plan handles the entire S Corp setup and maintenance.
• Penalty avoidance: Missed quarterly payments generate IRS underpayment penalties. Heard's automated reminders and direct payment links prevent this.
• Time value: Most Heard members save 5–10 hours per month previously spent on bookkeeping, tax prep, and financial admin.

Proactive strategies Heard uses to lower your tax burden:

• S Corp election analysis: Our CPAs model whether converting makes financial sense for your practice and handle the full transition if it does
• Retirement contributions: Contributing to a Solo 401(k) or SEP-IRA through your practice can reduce taxable income by up to $72,000/year (2026 contribution limits) — Heard's team flags this opportunity proactively
• Deduction capture: Year-round categorization ensures every eligible expense is captured before the tax year closes, not discovered after the fact
• Quarterly planning: We review your financials each quarter, not just at year-end — which lets us recommend timing strategies (like accelerating deductions or adjusting estimated payments) while you still have time to act

Our CPAs will assess your specific situation during a free consultation to show you exactly what the financial impact looks like for your practice.

Book a free consultation →