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The Complete List of Tax Deductions for Therapists
Tax deductions can save your therapy practice a significant chunk of change. But if you don’t know what qualifies as a deductible expense, you’ll miss out.
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How to Start a Therapy Practice in California
To start a therapy practice in California, follow these seven steps.
- Check local zoning regulations
- Register a business name
- Choose a business structure
- Register your business
- Obtain relevant licenses
- Get insurance
- Start paying taxes
If you’re moving your practice from a different state, there’s an eighth step you’ll need to follow: Learn how to pay taxes in multiple states.
This article covers the bare essentials needed to get your therapy practice up and running in the Golden State.
For more on budgeting, marketing your practice, and billing your clients, check out our general guide, How to Start a Therapy Practice.
Check local zoning regulations in California
California boasts 58 counties and 482 municipalities. Before you settle on a location for your therapy practice—even if that location is your own home—you must make sure the local zoning allows you to operate there.
In cases where you aren’t typically allowed to operate a business in a certain area—for instance, a home business in a residential area—you can apply for a zoning variance. A variance is more or less an exception to zoning laws.
For information on whether you need to apply for a variance, what types of zoning your town or city recognizes, and what kind of business you can perform there, contact your local municipality.
Register a business name in California
In California, business names are registered and managed at the county level.
If your therapy practice is a sole proprietorship, and you’d like to operate under your own name (e.g. “Jane Smith”) you may do so without registering a business name.
If you want a name different from your own (e.g. “Jane Smith Counseling”) or if you switch to a different business structure (a professional corporation), you’ll need to register a doing business as name (DBA), also called a fictitious business name (FBN).
Don’t let “fictitious” mislead you. Once it’s registered, your DBA/FBN is the name your business is legally entitled to operate under.
To get a DBA for your therapy practice:
- Do a name search to make sure your name isn’t already taken.
- File a fictitious business name (FBN) statement with the county clerk. Your county clerk’s office can provide an FBN statement. Be prepared to provide your personal name and address, the DBA/FBN you’re registering, your practice’s address, your state ID number, and the business type.
- Publish the new business name. Within 30 days of filing, you must publish your FBN statement in a county newspaper. The ad must run for four consecutive weeks. Your county clerk’s office can provide you with a list of approved publications. They will also sign an affidavit within 30 days of the announcement running as proof that you published your name.
- Pay filing fees. The cost of filing an FBN varies county by county.
- Renew every five years. After five years, you must file your FBN statement again. Typically, you are not required to publish it again.
As an optional step before registering, if your professional corporation, you may also file a business name reservation at the state level. Your business name will be reserved for up to 60 days.
California requires licensed therapists to abide by certain naming conventions.
Choose a business structure recognized by the state of California
Each state recognizes—and registers—different business structures (aka “entity types”). Your practice’s business structure affects how its income is taxed and who may own shares of the practice.
The state of California puts limits on which business structures licensed mental health professionals may choose for their private practices. You have two options to choose from:
- Sole proprietorship
- Professional Corporation
Note you cannot operate as an LLC or PLLC as a therapist in California. This list is just an introduction. Before settling on a business structure, talk to your accountant—and, if necessary, a lawyer—for help choosing the right one.
For more information, check out our article How to Choose a Business Entity for Your Therapy Practice.
Sole proprietorship
When you go into business for yourself, you’re considered a sole proprietor by default. As a sole proprietorship, your business is identical with your person: all revenue is your revenue, all losses are your losses.
Sole proprietorships are the simplest form of business structure, but offer nothing in the way of legal or financial protection.
Professional Corporation
Like a regular corporation, a professional corporation exists separately from its owners, who own shares in it. There are two types: C corporations and S corporations. C corporations may elect S corporation status by filing IRS Form 2553.
C corporations have their income taxed separately from the income of the shareholders. S corporations pass on the tax liability to each shareholder. For a variety of reasons, Heard recommends its clients form S corporations at the federal level.
The professional corporation business structure makes each shareholder in the corporation personally liable for any malpractice lawsuits brought against them, while protecting the corporation as a whole from liability.
Register your therapy practice in California
To register your business in California, you need to do two things:
- File the business registration with the state.
- Pay the filing fee.
Here’s a breakdown for each of the business structures covered above.
Register a sole proprietorship in California
Filing fees: $26 for one registrant/name
Aside from registering a DBA/FBN, there are no extra steps you need to take in order to form a sole proprietorship in California.
Incorporate in California
Filing fees: $200 to incorporate, plus $800 annually (franchise tax)
- Choose a business name.
- Appoint a registered agent. This person must be over 18 and have an address within the state. They’re responsible for receiving all official communications from the State.
- Draft and file your Articles of Incorporation.
You can file all the necessary forms online using the Secretary of State’s bizfile service.
Once you’ve incorporated in California, you can elect S corporation status by filing IRS Form 2553.
Get business licenses and permits for your therapy practice in California
To operate in California, your therapy practice may require licenses or permits. These are handled at the federal, state, and local levels.
Luckily, therapy practices do not need any special federal permits or licenses to operate in California. They also do not require permitting or licensing at the state level beyond the typical licensure individual therapists require.
At the local level, meaning your county and/or municipality (town, city, etc.), you may be required to purchase a business license to operate. Check with local government bodies.
At the low end of the scale, a county or municipal business license costs $15 – $30. At the higher end, one may cost several hundred dollars. Some counties or municipalities may charge you a percentage of your business income instead of a flat fee, but this typically only applies to larger businesses.
Get business insurance for your therapy practice in California
The following types of business insurance are highly recommended for therapy practices operating in California:
- General liability insurance
- Commercial property insurance
- Business income insurance
- California worker’s compensation insurance
While shopping for insurance, look for a business owner’s policy (BOP). A BOP typically includes the three core types of insurance coverage: general liability, commercial property, and business income.
General liability insurance protects you in case of any damages you cause to someone else’s property or person. Since the state of California puts no cap on liability lawsuit rewards, it’s important to make sure you’re well-covered. Aim for at least $1 million coverage.
Commercial property insurance protects property your therapy practice owns, like computers, business phones, or office furniture. It also protects the building where you operate, whether owned or rented.
Business income insurance covers you for loss of income due to specific circumstances. These include natural disasters, such as fire or storm damage; and man-made disasters, like theft.
If you have employees, you’re legally required to cover them with California worker’s compensation insurance. This pays for medical expenses, lost wages, and ongoing care in the event one of your employees is injured on the job.
Prepare to pay taxes in California
Every business earning income in California is required to pay state taxes. If you owe over $500 in state taxes, you’re required to pay that amount in quarterly installments.
Wondering how to get started? Check out How to Pay Income Tax in Every State as a Therapist.
Learn how to pay taxes in multiple states
If you started your therapy practice in a different state, and you’re moving to California—or if you operate in California, and you’re planning to move to a different state—you’ll need to figure out how to pay taxes in multiple states.
The rules vary depending on which states you operate in over the course of the year, and how long you spend in each. Check out How Moving to a Different State Impacts your Taxes as a Therapist.
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Want to learn more? Check out our guide on how to start a therapy practice.
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.
How to Fill Out a Schedule C for Therapists
You need to know how to fill out Schedule C of IRS Form 1040 if your therapy practice is a sole proprietorship or a single-member LLC.
Schedule C is where you report the self-employment income you’ve earned running your therapy practice, and the deductible expenses you’ve incurred.
Since Schedule C is the main factor differentiating your business tax return from your personal tax return, it can be a major stumbling block for therapists new to running their own practices.
Luckily, by the time you’re done reading this article, you’ll know the core essentials you need to complete Schedule C.
The fastest, easiest way to file Schedule C for your therapy practice
Before we get neck deep in a line-by-line breakdown of Schedule C, a quick disclaimer: This is a good time to look at hiring an accountant.
When you work with an accountant—or the team of tax professionals at Heard—they give you personal guidance filling out Schedule C. You’re less likely to make a mistake (potentially incurring IRS penalties), and more likely to benefit from expense deductions or smart tax moves that save your business money. They can also help you understand what is and isn't deductible based on IRS tax laws.
Learn more about how to hire an accountant for your therapy practice.
Schedule C for therapists: a broad overview
Feast your eyes upon the glory of IRS Form 1040 Schedule C:
It may look intimidating, but Schedule C becomes easier to digest when you break it down into bite-size pieces. Read on for line-by-line instructions on filling out each section of Schedule C’s five sections.
Schedule C for therapists: section by section, line by line
As mentioned above, you can save yourself a lot of time and effort completing Schedule C for your therapy practice by hiring an accountant—or the financial experts at Heard, who work exclusively with therapy practices.
If you’re determined to go it alone, however, here’s what you need to know to fill out your Schedule C.
For additional context and, in some cases, more detailed guidance, refer to the IRS instructions for Form 1040, Schedule C.
The Intro
The first chunk of Schedule C is where you’ll provide the IRS with your personal info, and key information about your therapy practice.
Only enter your SSN if you don’t already have an EIN. (More on that below.)
A & B. The IRS has a list of business types, each one with a corresponding six digit code. A general description, eg. “therapy practice,” works here. For most therapists, the code to use is 621330 (“Offices of mental health practitioners (except physicians.”)
C. Here you’ll list your business name, or “doing business as” (DBA). Only fill this out if you’ve registered a DBA.
D. If you have an employer ID number (EIN) for your private practice, enter it here. Otherwise, leave it blank.
E. If you work from home, use your home address here. Otherwise, list the address of your office.
F. If you’re not sure what accounting method you use, check with your bookkeeper. Our guide to accrual vs. cash basis accounting for therapists may also help.
G. If you work at your own therapy practice (as most therapists do), you materially participate—so the answer here is “Yes.”
H. If this is your first year in business, check this box.
I. If you paid an independent contractor $600 during the course of the year, the answer here is “Yes.” In that case, you should be prepared to file a Form 1099 for them.
J. Answer “yes” here if you answered yes for I. And, if you feel like you’re in the dark when it comes to Form 1099, learn about your responsibilities when you hire an independent contractor for your therapy practice.
Part I
In this section, you’ll report your revenue before taking into account any deductible expenses.
1. Since you’re self-employed, and reporting income from your own business, you likely won’t be checking off the box here. This is where you list everything your therapy practice earned during the year, not counting expenses.
2. This box is for reporting any refunds you made to customers over the course of the year.
3. Here’s where you calculate your income after taking into account refunds you made.
4. Since most therapists don’t need to purchase raw materials in order to run their therapy practices, this section is irrelevant and may be skipped. (COGS is only relevant to your business if you create and sell goods.)
5. Your gross profit goes here, after taking into account refunds and cost of goods sold (COGS). For many therapists, box 5 contains the same amount as box 1.
6. In the event you earn money that is related to your business, but not do day-to-day operations, you can list it here. Examples: Interest income from a savings account, cash back rewards from your business credit card.
7. One more time, you’ll calculate your gross income by taking into account the line above. Pay attention to this number; you’ll subtract your deductible expenses from it later in order to calculate your net profit.
Part II
This is the meat of Schedule C. The IRS asks you to report expenses you’re deducting from your taxes.
If you’re new to deducting business expenses, read these articles before proceeding:
- Deductible expenses for therapists
- Recordkeeping for therapists
- Complete list of deductible expenses for therapists
8. The cost of advertising your therapy practice may include your professional website, listings in online therapist directories, business cards, online ads, and other expenses. You can list the total here.
9. This part is strictly used for reporting business use of your car. If you’re planning to list your vehicle as a business expense, leave this box blank for now. Further on, in Part IV, you’ll calculate your total deductible expense.
10. If you’re a partner working as an independent contractor for another practice, and you pay them fees for office use, etc. you can list the total amount paid here.
11. The cost of any contractors you hired to do work for your business during the year are listed as a total here. These may include repair or maintenance people for your office, web and graphic designers, or other therapists doing contract work for your practice.
12. This section only applies to people working in resource extraction industries, and isn’t relevant to therapists.
13. If you’re depreciating large expenses (such as furniture or computers purchased for your office), you list the annual depreciation here. Since depreciation is a bit tricky, it’s best to get help from an accountant.
14. The cost of employee health insurance or health savings accounts, or other benefits, is listed here. (This only applies to your employees’ health insurance, not your own self-employed health insurance.)
15. The cost of all insurance not including health insurance for employees goes here. That includes liability and property insurance.
16a and 16b. If you happen to own an office building or other commercial space where your practice is based, you deduct the cost of mortgage insurance here.
17. The cost of hiring or retaining a lawyer is entered here.
18. Your total office expenses, not including rent and utilities, go here. (Work from home? Check out our guide to the home office deduction for therapists.)
19. Any pensions or profit sharing plans you offer your employees counts as a business expense.
20a and b. Most therapists don’t rent or lease vehicles and equipment in order to run their practices, but if you did, it would go here.
21. The cost of any repairs or maintenance you make to your office space goes here. Note that new renovations don’t count—only work considered necessary to the functioning of the space. Refreshing the paint on your walls every few years may qualify; installing a commercial grade espresso machine in your office likely does not. This category also includes repairs to equipment like office furniture or computers.
22. Any supplies that don’t qualify as office expenses—therapeutic aids or learning toys, for instance—may be deducted as expenses here. (In the case of tools used in therapy, you may want to check with your accountant; they could be deducted either here, or in Part V below.)
23. The cost of any local or state business licenses, as well as sales tax you collect, franchise tax, and payroll tax (for employees) can be reported here.
24a and b. It can be a bit tricky determining which travel and meal expenses qualify as deductions for your business. Check out our complete guide to tax deductions for therapists—or, better yet, consult with an accountant.
25. This is where you deduct the total annual cost of utilities (phone, electricity, heating, internet) for your office.
26. The total wages you paid to employees of your practice during the course of the year can be deducted here.
27a. If you have additional deductible expenses that don’t fit into the categories listed in Part II, skip ahead and add them up in Part V. Then, return here to report the total.
27b. This box is a mystery. Leave it blank.
28. Add up all your expenses listed in the previous boxes (without taking into account any additional home office expenses), and enter the total here.
29. Subtract your total expenses from your gross income (as listed in box 7 above) to get your tentative income (your net income, before taking into account home office expenses.)
30. If you work from home, this is where you’ll calculate and/or deduct the cost of your home office, depending what method you’re using to calculate your deduction. Make sure these expenses aren’t reported elsewhere. See our article on the home office deduction for therapists.
31. Subtract your home office expenses from your tentative income to get your net income (or loss, if you failed to make a profit). You’ll enter your net income on Schedule 1 of Form 1040, your personal tax return; and Schedule SE of Form 1040, the part of your personal return where you report earnings from self-employment.
32. If you did not make a profit, you’re required to specify how much of your investment in the company is at risk. If you are a sole proprietor, you’ll check off “All investment at risk,” since your personal assets are one and the same with your business.
Part III
The good news about Part III is that you can almost certainly ignore it.
In manufacturing businesses, cost of goods sold (COGS) includes the cost of manufacturing items—including the cost of raw materials and labor.
In retail businesses, COGS is the cost of inventory, usually purchased at wholesale prices.
In therapy, you almost never have COGS to report. Skip ahead to Part IV.
Part IV
You may be able to deduct some of the cost of your vehicle if you use it to travel to work events somewhere other than your office.
Which is to say, you cannot deduct the cost of owning and operating a vehicle if you use it to drive to work every day (even though this section provides a box for listing how much you used it to commute.)
Since vehicle expenses have the potential to be quite financially impactful, and the IRS is so strict about what it considers a vehicle used for business, it’s best to consult with an accountant rather than trying to complete this section on your own.
Part V
Any expenses that do not fall into the categories listed in Part III may be listed here.
Some expenses that don’t quite fit into Part III may include:
- Different types of therapeutic aids, toys, or tools
- Subscriptions to scholarly journals
- Books (for your own use)
- Workbooks and guides (for patients)
- Personal therapy (deducted as a business expense)
Proceed with caution here: trying to list expenses that don’t qualify, or listing them in an ambiguous way that confuses the IRS, can lead to a lot of time-consuming back-and-forth, even if it doesn’t result in penalties. Your best bet is to be as descriptive as possible when listing additional expenses in Part V.
As always, consult with an accountant if you’re unsure.
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Not sure where to start with expenses? Check out our complete list of tax deductions for therapists.
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.
How to Pay Income Tax in Every State as a Therapist
Besides paying federal income tax, your therapy practice may also be required to pay income tax at the state level.
43 states collect income tax, and of those, 41 may require you to make quarterly estimated payments.
This guide makes paying state income tax for your therapy practice as simple and straightforward as possible. For each US state, you’ll see:
- Quarterly estimated tax cutoffs. The minimum amount you must owe in taxes for the year before you’re required to pay quarterly estimated installments.
- Quarterly estimated payment deadlines. While many states use the same quarterly deadlines as the IRS for estimated payments, some do not.
- How to file and pay. Each state has its own filing forms and vouchers for estimated taxes, as well as its own online payment portal.
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About this guide
This guide assumes you’re filing according to the calendar year. If you file according to your own fiscal year, payment and filing deadlines will be different.
As always, to make absolutely certain you’re filing and paying your taxes correctly, it’s best to talk to a qualified accountant or work with the team at Heard.
Paying quarterly estimated taxes in your state
Any business owing over $1,000 in federal income tax ($500 for corporations) is required to pay it in quarterly estimated installments over the course of the year. You can learn more from our guide to quarterly estimated taxes for therapists.
Most states that collect income tax require businesses owing over a certain amount to pay quarterly estimated installments. It can sometimes be difficult to determine whether your state requires you to pay quarterly—it depends on how much you’ll owe in taxes for the year—as well as the payment schedule. This guide covers that.
Paying taxes in multiple states
If you moved states during the course of the year, your therapy practice may be required to file and pay income tax in multiple states. Learn more about how moving to a different state impacts your taxes as a therapist.
State quarterly taxes by state
* States that do not collect income tax.
** States that collect income tax but do not require quarterly estimated payments.
Paying income tax in Alabama as a therapist
Does your therapy practice need to make quarterly tax payments in Alabama?
In Alabama, businesses are required to pay state quarterly taxes if they owe $500 or more in taxes for the year. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Alabama?
The quarterly deadlines for estimated taxes in Alabama, according to quarter (Q), are:
- Q1: April 20th
- Q2: July 20th
- Q3: October 20th
- Q4: January 20th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Alabama
How to pay income tax for your therapy practice in Alabama
In order to pay individual Alabama income tax, follow these steps:
1. Go to: Alabama Interactive
2. Log in and/or create an account to pay, edit or review your tax payments. Upon logging in, follow the instructions to make a payment.
Paying income tax in Alaska as a therapist
Alaska does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in Arizona as a therapist
Does your therapy practice need to make quarterly tax payments in Arizona?
In Arizona, businesses are required to pay state quarterly taxes if they owe $500 or more in taxes for the quarter. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Arizona?
The quarterly deadlines for estimated taxes in Arizona, according to quarter (Q), are:
- Q1: April 20th
- Q2: July 20th
- Q3: October 20th
- Q4: January 20th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Arizona
How to pay income tax for your therapy practice in Arizona
To pay Arizona income tax, please follow these steps:
1. Go to: https://www.aztaxes.gov/Home/Page1.
2. Navigate to "Quick Links" on the left and click on "Make an Individual/Small Business Income Payment".
3. You will be redirected to a new screen and payment portal. For payment type, select the kind of payment you are submitting. Fill out the information on the directed link and follow the instructions to make a payment.
Paying income tax in Arkansas as a therapist
Does your therapy practice need to make quarterly tax payments in Arkansas?
In Arkansas, businesses are required to pay state quarterly taxes if they owe $1,000 or more in taxes for the quarter. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Arkansas?
The quarterly deadlines for estimated taxes in Arkansas, according to quarter (Q), are:
- Q1: April 15th
- Q2: July 15th
- Q3: October 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Arkansas
How to pay income tax for your therapy practice in Arkansas
To pay Arkansas income tax, follow these steps:
1. Go to: https://www.dfa.arkansas.gov/.
2. Click on "Taxes" on the left side of the navigation bar.
3. On the Taxes page, navigate to the "Arkansas Taxpayer Access Point" in the left hand column.
4. You'll be directed here. Click on "Income Taxes" in the navigation bar, then "Make Income Tax Payment".
5. You'll be directed to a payment portal. Follow the instructions to make a payment.
Paying income tax in California as a therapist
Does your therapy practice need to make quarterly tax payments in California?
In California, businesses are required to pay state quarterly taxes if they owe $500 or more in taxes for the quarter. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in California?
The quarterly deadlines for estimated taxes in California, according to quarter (Q), are:
- Q1: April 15th
- Q2: July 15th
- Q3: October 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for California
- California personal tax return
- California S corporation tax return (2020)
- California corporation tax return (2020)
- California tax form directory
How to pay income tax for your therapy practice in California
To pay California income tax, follow these steps:
1. Go to https://www.ftb.ca.gov/.
2. Click on “Pay” in the top bar.
3. Under the section “Make a payment”, there are three available options for you to submit your payment. These are through paying with your bank account, credit card, or with a payment plan. “Bank Account”, “Credit Card”, “Payment Plan”.
**Note: if you choose to pay by “Bank Account”, you will need your SSN available to be able to log in. As you are paying a personal income tax expense, please click on “Use Web Pay personal” to log in and make a payment.
4. If you choose to pay by “Credit Card”, click “Pay now with ACI payments”. Clicking on that will direct you to an external link. Please fill out all the information to make the payments.
Paying income tax in Colorado as a therapist
Does your therapy practice need to make quarterly tax payments in Colorado?
In Colorado, businesses are required to pay state quarterly taxes if they owe $1,000 or more in taxes for the year. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Colorado?
The quarterly deadlines for estimated taxes in Colorado, according to quarter (Q), are:
- Q1: April 15th
- Q2: July 15th
- Q3: October 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Colorado
How to pay income tax for your therapy practice in Colorado
To pay Colorado income tax, follow these steps:
1. Go to https://tax.colorado.gov/pay.
2. Scroll down to “Payment Options” and click “Individual Income Tax”.
3. From there, click on “Payment Due with Return Filing" if you are paying income tax at year-end, "Pay Tax Bill" if you are paying off an outstanding bill, or “Estimated Payments” if you are paying a quarterly payment, as seen below.
4. After that, click on your preferred method of payment and follow the subsequent instructions carefully.
Paying income tax in Connecticut as a therapist
Does your therapy practice need to make quarterly tax payments in Connecticut?
In Connecticut, businesses are required to pay state quarterly taxes if they owe $1,000 or more in taxes for the year. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Connecticut?
The quarterly deadlines for estimated taxes in Connecticut, according to quarter (Q), are:
- Q1: April 30th
- Q2: July 31st
- Q3: October 31st
- Q4: January 31st
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Connecticut
How to pay income tax for your therapy practice in Connecticut
To pay Connecticut income tax, follow these steps:
1. Go to: https://drs.ct.gov/eservices/_/#0.
2. Scroll down to the section labeled “Individuals”, then click “Make a Bill Payment, Estimated Payment, or Return Payment”.
3. You will be redirected to a new screen. Click to make a payment for outstanding tax liability or to pay off a tax bill, or click “Make an Estimated Payment” to submit quarterly estimated tax.
4. You will be redirected to a new screen. You will need to verify your identity using your SSN. Follow the instructions to make a payment.
Paying income tax in Delaware as a therapist
Does your therapy practice need to make quarterly tax payments in Delaware?
In Delaware, businesses are required to pay state quarterly taxes if they owe $1,000 or more in taxes for the year. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Delaware?
The quarterly deadlines for estimated taxes in Delaware, according to quarter (Q), are:
- Q1: April 30th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Delaware
How to pay income tax for your therapy practice in Delaware
To pay Delaware income tax, follow these steps:
1. Go to: https://revenue.delaware.gov/.
2. Click "Pay" in the navigation bar.
3. You'll be redirected to a page titled "Payment". Under the "Individuals" section, click "Pay your quarterly estimated tax" if you are submitting an estimated payment, or click “Pay your current return with balance due” if you are submitting income tax with your annual return.
4. You will be redirected to a payment portal. Follow the instructions to make an individual income tax payment.
Paying income tax in Florida as a therapist
Florida does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in Georgia as a therapist
Does your therapy practice need to make quarterly tax payments in Georgia?
In Georgia, businesses are required to pay state quarterly taxes if they owe $1,000 or more in taxes for the year. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Georgia?
The quarterly deadlines for estimated taxes in Georgia, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Georgia
How to pay income tax for your therapy practice in Georgia
To pay Georgia income tax, follow these steps:
1. Go to: https://dor.georgia.gov/
2. Navigate to “Taxes" near the upper-left corner. Below is the screen you'll see. Notice that there are several other options for you to pick. In order to pay quarterly estimated state tax, click on "Payment Options".
3. Below is what you'll see on the following screen. Go ahead and select your preferred method of payment (online or paper forms) and follow the subsequent steps.
Paying income tax in Hawaii as a therapist
Does your therapy practice need to make quarterly tax payments in Hawaii?
In Hawaii, businesses are required to pay state quarterly taxes if they owe $500 or more in taxes for the year. This includes businesses that are organized as sole proprietorships, partnerships, LLCs, and corporations.
When are quarterly taxes due in Hawaii?
The quarterly deadlines for estimated taxes in Hawaii, according to quarter (Q), are:
- Q1: April 20th
- Q2: June 20th
- Q3: September 20th
- Q4: January 20th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Hawaii
How to pay income tax for your therapy practice in Hawaii
To pay Hawaii income tax, follow these steps:
1. Go to: https://hitax.hawaii.gov/_/#0.
2. Scroll down and click on "Make a Payment" under the "Payment" section.
3. You will be redirected to a new screen. Log in or register, then follow the instructions to make an estimated tax payment.
Paying income tax in Idaho as a therapist
Idaho does not require you to pay quarterly estimated income tax on the individual level. You may still submit prepayments (not required) or individual income tax here.
Paying income tax in Illinois as a therapist
Does your therapy practice need to make quarterly tax payments in Illinois?
In Illinois, quarterly state tax payments are generally required for businesses and self-employed individuals who expect to owe at least $1,000 in state taxes for the year. This includes sole proprietors, partnerships, S corporations, and LLCs.
When are quarterly taxes due in Illinois?
The quarterly deadlines for estimated taxes in Illinois, according to quarter (Q), are:
- Q1: April 30th
- Q2: July 31st
- Q3: October 31st
- Q4: January 31st
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Illinois
How to pay income tax for your therapy practice in Illinois
To pay Illinois income tax, follow these steps:
1. Go to: Illinois Gov
2. Navigate to "Make a Payment", then click on "Payment Options for Individuals".
3. You will then see the following screen and follow the instructions to make a payment. Please be sure to note that what kind of tax you are submitting (an estimated tax payment, annual tax liability, extension payment, etc.) as you go through the workflow.
Paying income tax in Indiana as a therapist
Does your therapy practice need to make quarterly tax payments in Indiana?
In Indiana, businesses and self-employed individuals are generally required to pay quarterly state taxes if they expect to owe at least $1,000 in state taxes for the year. This includes sole proprietors, partnerships, S corporations, and LLCs.
When are quarterly taxes due in Indiana?
The quarterly deadlines for estimated taxes in Indiana, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Indiana
How to pay income tax for your therapy practice in Indiana
To pay Indiana income tax, follow these steps:
1. Go to: https://www.in.gov/dor/.
2. Click on "Make Payment or Establish Payment Plan" in the navigation bar.
3. You'll be redirected to InTime, or the Indiana Taxpayer Information Management Engine. Scroll down and navigate to "Make a Payment" in the Payments section.
4. You will be redirected to a payment portal. Under non-bill payments, click your payment method of choice: bank or credit card.
5. Follow the instructions to make a payment. Be sure to denote that you are making an individual income tax payment.
Paying income tax in Iowa as a therapist
Does your therapy practice need to make quarterly tax payments in Iowa?
In Iowa, businesses and self-employed individuals are generally required to pay quarterly state taxes if they expect to owe at least $200 in state taxes for the year. This includes sole proprietors, partnerships, S corporations, and LLCs.
When are quarterly taxes due in Iowa?
The quarterly deadlines for estimated taxes in Iowa, according to quarter (Q), are:
- Q1: April 30th
- Q2: June 30th
- Q3: September 30th
- Q4: January 31st
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Iowa
How to pay income tax for your therapy practice in Iowa
To pay Iowa income tax, follow these steps:
1. Go to: https://tax.iowa.gov/.
2. In the top navigation, hover over "I Need To...", then click "Make a Payment".
3. You will be redirected to a new screen. Click the drop down and select "Individual Income Estimate Tax" if you are submitting a quarterly estimated payment, or “Individual Income Tax” if you are paying off your annual tax liability at year-end.
4. Click your preferred method of payment and follow the instructions to submit your estimated tax payment.
Paying income tax in Kansas as a therapist
Does your therapy practice need to make quarterly tax payments in Kansas?
In Kansas, businesses and self-employed individuals are generally required to pay quarterly state taxes if they expect to owe at least $500 in state taxes for the year. This includes sole proprietors, partnerships, S corporations, and LLCs.
When are quarterly taxes due in Kansas?
The quarterly deadlines for estimated taxes in Kansas, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Kansas
How to pay income tax for your therapy practice in Kansas
To pay Kansas income tax, follow these steps:
1. Go to: KSRevenue
2. Hover over "Taxation" and navigate to "Make a tax payment".
3. You will be redirected to a new screen. Log in and register, then follow the instructions to make an income tax payment.
Paying income tax in Kentucky as a therapist
Does your therapy practice need to make quarterly tax payments in Kentucky?
In Kansas, businesses and self-employed individuals are generally required to pay quarterly state taxes if they expect to owe at least $500 in state taxes for the year. This includes sole proprietors, partnerships, S corporations, and LLCs.
When are quarterly taxes due in Kentucky?
The quarterly deadlines for estimated taxes in Kansas, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Kentucky
How to pay income tax for your therapy practice in Kentucky
To pay Kentucky income tax, follow these steps:
1. Go to: https://epayment.ky.gov/EPAY.
2. Click “Get Started!” and follow the onscreen instructions.
Paying income tax in Louisiana as a therapist
Does your therapy practice need to make quarterly tax payments in Louisiana?
In Louisiana, businesses and self-employed individuals are generally required to pay quarterly state taxes if they expect to owe at least $1,000 in state taxes for the year. This includes sole proprietors, partnerships, S corporations, and LLCs.
When are quarterly taxes due in Louisiana?
The quarterly deadlines for estimated taxes in Louisiana, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Louisiana
How to pay income tax for your therapy practice in Louisiana
To pay Louisiana income tax, follow these steps:
1. Go to: https://revenue.louisiana.gov/.
2. Navigate to and click on "Make a Payment" on the left side of the navigation bar.
3. Click "Individuals" when prompted to choose between Businesses or Individuals.
4. Next, head to "Louisiana File & Pay Online".
5. Press "Continue". Then, under Individual Tax Option, click "2022 Individual Income Tax Estimated Payments" in the left hand column.
You will be directed to the Online Filing Portal for the Louisiana Department of Revenue. Log in or create an account and follow the instructions to make a payment.
Paying income tax in Maine as a therapist
Does your therapy practice need to make quarterly tax payments in Maine?
All businesses that operate in Maine are required to pay quarterly state taxes if they estimate they will owe $1,000 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Maine?
The quarterly deadlines for estimated taxes in Maine, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Maine
How to pay income tax for your therapy practice in Maine
To pay Maine income tax, follow these steps:
1. Go to: https://www.maine.gov/revenue/.
2. Hover over "Electronic Services" and navigate to "EZ Pay".
3. You will be redirected to a secure payment portal. Log in or register, then click "Make a Payment" at the bottom of the screen. Follow the instructions to make an income or estimated tax payment.
Paying income tax in Maryland as a therapist
Does your therapy practice need to make quarterly tax payments in Maryland?
In Maryland, companies that operate within the state and expect to owe $1,000 or more in state taxes for the year are required to pay quarterly estimated taxes.
When are quarterly taxes due in Maryland?
The quarterly deadlines for estimated taxes in Maryland, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Maryland
How to pay income tax for your therapy practice in Maryland
To pay Maryland income tax, follow these steps:
1. Go to: Maryland Taxes
2. Navigate to "Pay", then click on "Individual Payment".
3. Scroll down to "Other Online Options" at the bottom of the screen and click on one of the options below. If you want to make estimated tax payments, click on "Make a person estimated payment – Form PV". Fill out the information on the directed link and follow the instructions to make a payment.
Paying income tax in Massachusetts as a therapist
Does your therapy practice need to make quarterly tax payments in Massachusetts?
All businesses that operate in Maine are required to pay quarterly state taxes if they estimate they will owe $400 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Massachusetts?
The quarterly deadlines for estimated taxes in Massachusetts, according to quarter (Q), are:
- Q1: March 15th
- Q2: June 15th
- Q3: September 15th
- Q4: December 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Massachusetts
How to pay income tax for your therapy practice in Massachusetts
To pay Massachusetts income tax, follow these steps:
1. Go to https://www.mass.gov/.
2. Scroll down to “Featured Services”, then click on “Personal Income Tax”.
3. From there, scroll down to the section “What would you like to do?". Click on “Make a tax payment with MassTaxConnect”. This will redirect you to an external link called MassTaxConnect.
4. Under “Quick Links”, you will look for and click on “Make a payment”.
5. Your next screen will look like the below. Fill out the information as requested and follow the steps required to make a payment. You will need your SSN on hand in order to pay.
Paying income tax in Michigan as a therapist
Does your therapy practice need to make quarterly tax payments in Michigan?
In Michigan, individuals and businesses that are required to pay state taxes must file a quarterly return if they expect to owe more than $500 in taxes for the year. This includes income tax, sales and use tax, and other types of taxes that are collected by the Michigan Department of Treasury.
When are quarterly taxes due in Michigan?
The quarterly deadlines for estimated taxes in Michigan, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Michigan
How to pay income tax for your therapy practice in Michigan
To pay Michigan income tax, follow these steps:
1. Go to: Michigan Gov
2. Navigate to and click on "Individual Income Tax".
3. You'll see the below screen next. Click on "Pay your taxes online".
4. Below are the options you can use to facilitate a payment. Select your preferred method and follow the subsequent instructions to make a payment.
Paying income tax in Minnesota as a therapist
Does your therapy practice need to make quarterly tax payments in Minnesota?
In Minnesota, individuals and businesses that are required to pay state taxes must file a quarterly return if they expect to owe more than $500 in taxes for the year. This includes income tax, sales and use tax, and other types of taxes that are collected by the Minnesota Department of Revenue.
When are quarterly taxes due in Minnesota?
The quarterly deadlines for estimated taxes in Minnesota, according to quarter (Q), are:
- Q1: March 15th
- Q2: June 15th
- Q3: September 15th
- Q4: December 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Minnesota
How to pay income tax for your therapy practice in Minnesota
To pay Minnesota income tax, follow these steps:
1. Go to: Revenue Minnesota
2. Hover over "Individuals" and navigate to "Make a Payment".
3. You will be redirected to a new screen. Choose your preferred method of payment from the list.
4. To pay from your bank account (most common method), click on the link for "Individuals" via the e-Services Payment System.
5. You will be redirected to a secure payment portal. Follow the instructions to make a payment.
Paying income tax in Mississippi as a therapist
Does your therapy practice need to make quarterly tax payments in Mississippi?
In Mississippi, individuals and businesses that are required to pay state taxes must file a quarterly return if they expect to owe more than $200 in taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Mississippi?
The quarterly deadlines for estimated taxes in Mississippi, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Mississippi
How to pay income tax for your therapy practice in Mississippi
To pay quarterly tax installments online, go to https://www.dor.ms.gov/, click on taxpayer access point (TAP), and follow the instructions on screen.
Paying income tax in Missouri as a therapist
Does your therapy practice need to make quarterly tax payments in Missouri?
In Missouri, individuals and businesses that are required to pay state taxes must file a quarterly return if they expect to owe more than $500 in taxes for the year. This includes income tax, sales and use tax, and other types of taxes that are collected by the Missouri Department of Revenue.
When are quarterly taxes due in Missouri?
The quarterly deadlines for estimated taxes in Missouri, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Missouri
How to pay income tax for your therapy practice in Missouri
To pay Missouri income tax, follow these steps:
1. Go to: https://dor.mo.gov/.
2. Under "Taxation", navigate to "Individual Tax", then "File and Pay Your Taxes Online".
3. You will be redirected to a new screen. Please read through the page to learn more about payment methods and fees. Click "Pay Online" at the bottom of the screen.
4. You will be redirected to a new screen. Login or submit a one-time payment. Follow the instructions to make a payment. Where applicable, be sure to notate it is for estimated tax.
Paying income tax in Montana as a therapist
Does your therapy practice need to make quarterly tax payments in Montana?
All businesses that operate in Montana are required to pay quarterly state taxes if they estimate they will owe $500 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Montana?
The quarterly deadlines for estimated taxes in Montana, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: December 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Montana
How to pay income tax for your therapy practice in Montana
To pay Montana income tax, follow these steps:
1. Go to: https://tap.dor.mt.gov/_/.
2. Scroll down, and navigate to "Make a Payment" under the "Quick Links" section.
3. You'll be directed to a payment portal. Follow the instructions to login, create an account, and/or make a payment.
Paying income tax in Nebraska as a therapist
Does your therapy practice need to make quarterly tax payments in Nebraska?
All businesses that operate in Nebraska are required to pay quarterly state taxes if they estimate they will owe $500 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Nebraska?
The quarterly deadlines for estimated taxes in Nebraska, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Nebraska
How to pay income tax for your therapy practice in Nebraska
To pay Nebraska income tax, follow these steps:
1. Go to: https://revenue.nebraska.gov/.
2. Hover over Individuals in the navigation bar, then navigate to "Make a Payment Only".
3. You'll be redirected to a page regarding Payment Options. Click on "Individual Income Tax" if you are paying off your tax liability at year-end or from a tax bill or "Estimated Income Tax" if you are submitting a quarterly estimated payment.
4. Click on "Make Payment" at the bottom of the page, then follow the instructions to make a payment.
Paying income tax in Nevada as a therapist
Nevada does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in New Hampshire as a therapist
Does your therapy practice need to make quarterly tax payments in New Hampshire?
All businesses that operate in New Hampshire are required to pay quarterly state taxes if they estimate they will owe $500 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in New Hampshire?
The quarterly deadlines for estimated taxes in New Hampshire, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for New Hampshire
How to pay income tax for your therapy practice in New Hampshire
To pay New Hampshire income tax, follow these steps:
1. Go to: https://www.revenue.nh.gov/.
2. Under "How Do I?", click "Get eFile help?"
3. You will be redirected to a new screen. Click on "GRANITE TAX CONNECT" to create or access your existing account.
4. You will be directed to a new screen. Under "Payments", select "Make a Payment".
5. This will take you to a secure payment portal. Sign in or continue with submitting a one-time payment, then follow the instructions to make a tax payment. You will need your SSN for identification purposes.
Paying income tax in New Jersey as a therapist
Does your therapy practice need to make quarterly tax payments in New Jersey?
All businesses that operate in New Jersey are required to pay quarterly state taxes if they estimate they will owe $400 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in New Jersey?
The quarterly deadlines for estimated taxes in New Jersey, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for New Jersey
How to pay income tax for your therapy practice in New Jersey
To pay New Jersey income tax, follow these steps:
1. Go to: New Jersey Treasury
2. Navigate to and click on "Pay Tax".
3. Ensure you are looking at the "Individuals" tab. You should automatically be directed here.
4. Under the "Individuals" tab, scroll down to "Option A" at the bottom, which allows you to make an estimated payment, make an extension payment, or pay a tax balance. Click on "Make a Payment".
5. You will then be directed to a page entitled "Individual Income Tax Payment and Filing". You will need your Social Security number or federal identification number and your date of birth to log into the portal. From there, fill out the requested information and follow the instructions to make an income tax payment.
Paying income tax in New Mexico as a therapist
Does your therapy practice need to make quarterly tax payments in New Mexico?
All businesses that operate in New Mexico are required to pay quarterly state taxes if they estimate they will owe more than $1,000 in taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in New Mexico?
The quarterly deadlines for estimated taxes in New Mexico, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for New Mexico
How to pay income tax for your therapy practice in New Mexico
Log in to the taxpayer access point (TAP) at https://tap.state.nm.us/tap/_/ and follow the instructions on screen.
Paying income tax in New York as a therapist
Does your therapy practice need to make quarterly tax payments in New York?
All businesses that operate in New York are required to pay quarterly state taxes if they estimate they will owe more than $300 of New York State, $300 of New York City, or $300 of Yonkers income taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in New York?
The quarterly deadlines for estimated taxes in New York, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for New York
- New York individual, partnership, and LLC tax forms
- New York corporate tax forms
- New York tax forms main page
How to pay income tax for your therapy practice in New York
To pay New York income tax, follow these steps:
1. Go to: https://www.tax.ny.gov/
2. Scroll down to the section entitled "Popular Services". Click on “Make a payment”.
3. Scroll down to “Payment Options” as shown below, then click on the second option, which is notated as “Pay Personal Income Tax”.
4. Next, you will need to log in to make a payment. Click on “Login to Pay” at the bottom of the page.
5. You will either need to log in with an existing account or sign up for one. If you choose to sign up or create an account, scroll down to “Individual account” and click on “Create individual account”. Please follow the steps to create an account and make a payment. **Note: You will need SSN for identification purposes.
6. Fill out the information required from the portal as needed to make a payment.
Paying income tax in North Carolina as a therapist
Does your therapy practice need to make quarterly tax payments in North Carolina?
All businesses that operate in North Carolina are required to pay quarterly state taxes if they estimate they will owe $1,000 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in North Carolina?
The quarterly deadlines for estimated taxes in North Carolina, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for North Carolina
How to pay income tax for your therapy practice in North Carolina
To pay North Carolina income tax, follow these steps:
1. Go to: https://www.ncdor.gov/.
2. Navigate to and click on "File & Pay".
3. Scroll down to "Commonly Filed Taxes" at the bottom and click on one of the options below. If you want to make estimated tax payments, click on "Individual Income Estimated Tax Payment - NC-40". Fill out the information on the directed link and follow the instructions to make a payment.
Paying income tax in North Dakota as a therapist
Does your therapy practice need to make quarterly tax payments in North Dakota?
All businesses that operate in North Dakota are required to pay quarterly state taxes if they estimate they will owe more than $1,000 in taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in North Dakota?
The quarterly deadlines for estimated taxes in North Dakota, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for North Dakota
How to pay income tax for your therapy practice in North Dakota
Log in to the taxpayer access point (TAP) at https://apps.nd.gov/tax/tap/_/#1 and follow the instructions on screen.
Paying income tax in Ohio as a therapist
Does your therapy practice need to make quarterly tax payments in Ohio?
All businesses that operate in Ohio are required to pay quarterly state taxes if they estimate they will owe $500 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Ohio?
The quarterly deadlines for estimated taxes in Ohio, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Ohio
How to pay income tax for your therapy practice in Ohio
To pay Ohio income tax, follow these steps:
1. Go to: Tax Ohio
2. In the top navigation bar, click on "Resources for Individuals".
3. You will be redirected to a new page. In the bottom left hand corner, navigate to "Pay Online" and click "Learn More".
4. You will be directed to a new screen. You may submit your tax payment through Ohio's Guest Payment Service or via Online Services. Follow the instructions on the preferred method to submit your payment. When prompted, be sure to note that the payment is for individual income tax / an estimated payment.
Paying income tax in Oklahoma as a therapist
Does your therapy practice need to make quarterly tax payments in Oklahoma?
All businesses that operate in Oklahoma are required to pay quarterly state taxes if they estimate they will owe $500 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Oklahoma?
The quarterly deadlines for estimated taxes in Okhlahoma, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Oklahoma
How to pay income tax for your therapy practice in Oklahoma
To pay Oklahoma income tax, follow these steps:
1. Go to: https://oklahoma.gov/tax.html.
2. Hover over Individuals in the navigation bar, then navigate to "Pay Taxes".
3. Scroll down to "Pay Taxes Online", then click "Visit OkTAP".
4. You'll be redirected to a payment portal. Follow the instructions to make an individual income tax payment.
Paying income tax in Oregon as a therapist
Does your therapy practice need to make quarterly tax payments in Oregon?
All businesses that operate in Oregon are required to pay quarterly state taxes if they estimate they will owe $1,000 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Oregon?
The quarterly deadlines for estimated taxes in Oregon, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Oregon
How to pay income tax for your therapy practice in Oregon
To pay Oregon income tax, follow these steps:
1. Go to: Oregon Gov
2. Navigate to "Revenue Online", then click "Payments".
3. You will be redirected to the screen below. Select your preferred method of payment and follow subsequent instructions to pay.
Paying income tax in Pennsylvania as a therapist
Does your therapy practice need to make quarterly tax payments in Pennsylvania?
All businesses that operate in Pennsylvania are required to pay quarterly state taxes if they estimate they will owe $246 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Pennsylvania?
The quarterly deadlines for estimated taxes in Pennsylvania, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Pennsylvania
- Pennsylvania individuals tax forms
- Pennsylvania corporate tax forms
- Pennsylvania forms and publications main page
How to pay income tax for your therapy practice in Pennsylvania
To pay Pennsylvania income tax, follow these steps:
1. Go to: https://mypath.pa.gov/_/#0.
2. Scroll down, navigate to the "Payments" section and click on "Make an Individual Payment".
3. You will be redirected to a new screen. On the left hand column, under "I Want To...", click "Make a Payment."
4. You will be redirected to a new screen. If you are paying estimated tax, underneath "Payment Type", make sure you have marked "Estimated Payment". Please ensure you are paying for the proper tax year (ie. if you are submitting a Q4 tax payment in January 2023, your estimated payment is for the tax year 2022.) Follow the instructions to make a payment.
Paying income tax in Rhode Island as a therapist
Does your therapy practice need to make quarterly tax payments in Rhode Island?
All businesses that operate in Rhode Island are required to pay quarterly state taxes if they estimate they will owe $250 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Rhode Island?
The quarterly deadlines for estimated taxes in Rhode Island, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Rhode Island
How to pay income tax for your therapy practice in Rhode Island
Log in to the Rhode Island tax portal at https://taxportal.ri.gov/rptp/portal/home/ and follow the instructions on screen.
Paying income tax in South Carolina as a therapist
Does your therapy practice need to make quarterly tax payments in South Carolina?
All businesses that operate in South Carolina are required to pay quarterly state taxes if they estimate they will owe $100 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in South Carolina?
The quarterly deadlines for estimated taxes in South Carolina, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for South Carolina
- South Carolina individuals tax forms
- South Carolina corporate tax forms
- South Carolina’s Find a Form tool
How to pay income tax for your therapy practice in South Carolina
To pay South Carolina income tax, follow these steps:
1. Go to: https://mydorway.dor.sc.gov/_/#2.
2. Scroll down and click on "Make a Payment" under the "Payments" section.
3. You will be redirected to a new screen. Click on "Individual Income Tax Payment" for Payment Type, then follow the instructions to make an income or estimated tax payment.
Paying income tax in South Dakota as a therapist
South Dakota does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in Tennessee as a therapist
Tennessee does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in Texas as a therapist
Texas does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in Utah as a therapist
Utah does not collect quarterly estimated taxes.
Paying income tax in Vermont as a therapist
Does your therapy practice need to make quarterly tax payments in Vermont?
All businesses that operate in Vermont are required to pay quarterly state taxes. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Vermont?
The quarterly deadlines for estimated taxes in Vermont, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Vermont
How to pay income tax for your therapy practice in Vermont
To pay Vermont income tax, follow these steps:
1. Go to: https://tax.vermont.gov/.
2. Hover over "Pay" and navigate to "Pay Estimated Income Tax Online".
3. You will be redirected to a secure payment portal. Follow the instructions to make an estimated tax payment.
Paying income tax in Virginia as a therapist
Does your therapy practice need to make quarterly tax payments in Virginia?
All businesses that operate in Virginia are required to pay quarterly state taxes if they estimate they will owe $100 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Virginia?
The quarterly deadlines for estimated taxes in Virginia, according to quarter (Q), are:
- Q1: May 1st
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Virginia
How to pay income tax for your therapy practice in Virginia
To pay Virginia income tax, follow these steps:
1. Go to: https://www.tax.virginia.gov/.
2. Navigate to “Payments and Penalties", and click on “Payments”. Below is the screen you'll see. Notice that there are 4 options listed in here that you can pick to make your payments.
3. Click on "Individual Taxes", then this screen will pop up next.
*Note: Depending on your preferred method of making payments, you can select accordingly on this screen. Follow the instructions on the site as needed.
Paying income tax in Washington, DC as a therapist
Does your therapy practice need to make quarterly tax payments in Washington, DC?
All businesses that operate in Washington, DC are required to pay quarterly state taxes if they estimate they will owe $100 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Washington, DC?
The quarterly deadlines for estimated taxes in Washington, DC, according to quarter (Q), are:
- Q1: May 1st
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Washington, DC
- Washington, DC individuals tax forms
- Washington, DC corporate tax forms
- Washington, DC tax forms and instructions page
How to pay income tax for your therapy practice in Washington, DC
To pay Washington, D.C. income tax, follow these steps:
1. Go to: DC.Gov
2. You'll see the below on the left hand side of the side. Go ahead and navigate to "Payment Options".
3. There are 4 different ways you can make a payment. Scroll down on the page and follow the instructions of the method you prefer to make a payment.
Paying income tax in Washington State as a therapist
Washington State does not collect income tax, and there is no need to pay quarterly taxes at the state level.
Paying income tax in West Virginia as a therapist
Does your therapy practice need to make quarterly tax payments in West Virginia?
All businesses that operate in West Virginia are required to pay quarterly state taxes if they estimate they will owe $150 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in West Virginia?
The quarterly deadlines for estimated taxes in West Virginia, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for West Virginia
- IT40, Personal Income Tax Forms and Booklet
- CIT120, Corporate Net Income Tax Return
- More forms and instructions for businesses filing in Wests Virginia
How to pay income tax for your therapy practice in West Virginia
To pay West Virginia income tax, follow these steps:
1. Go to: https://mytaxes.wvtax.gov/_/#2.
2. Under “Make a Payment”, click on "Pay Estimated Personal Income Tax" if you are making an quarterly estimated tax payment or “Pay Personal Income Tax” if you are paying off outstanding liability.
3. You'll be redirected to a payment portal. Follow the instructions to make an individual income tax payment.
Paying income tax in Wisconsin as a therapist
Does your therapy practice need to make quarterly tax payments in Wisconsin?
All businesses that operate in Wisconsin are required to pay quarterly state taxes if they estimate they will owe $500 or more in state taxes for the year. This includes individuals who are self-employed, as well as partnerships and corporations.
When are quarterly taxes due in Wisconsin?
The quarterly deadlines for estimated taxes in Wisconsin, according to quarter (Q), are:
- Q1: April 15th
- Q2: June 15th
- Q3: September 15th
- Q4: January 15th
Generally, when a deadline falls on a weekend or a national or state holiday, it is moved to the next business day.
Income tax forms and worksheets for Wisconsin
- Wisconsin individual income tax forms
- Wisconsin corporate tax forms
- More tax forms for businesses filing in Wisconsin
How to pay income tax for your therapy practice in Wisconsin
To pay Wisconsin income tax, follow these steps:
1. Go to: Revenue Wisconsin
2. Click on "Individuals" in the navigation bar.
3. Click on "Make a Payment".
4. Click again on "Make a Payment" and choose your preferred method of payment. (You can learn more about estimated payments in the "Estimated Payments" section of this screen.)
5. You'll be redirected to a payment portal. The shown example is for an Automatic Withdrawal. In this example, you would want to click "Individual Income Tax" as your account type. Follow the instructions to make an individual income tax payment.
Paying income tax in Wyoming as a therapist
Wyoming does not collect income tax, and there is no need to pay quarterly taxes at the state level.
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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.
How to Prepare for Tax Season as a Therapist
Compared to when you work for someone else, the arrival of tax season can seem much more complicated when you run your own therapy practice.
There’s a lot to tackle, from itemizing deductible expenses to electing a business structure. It’s easy for important tasks to slip through the cracks.
Here are six easily overlooked steps you should take to prepare for tax season as a self-employed therapist.
Catch up on bookkeeping before the year is over
For a lot of business owners, tax season isn’t just about filing taxes—it’s about catching up on bookkeeping, too.
You can’t file your income tax unless you know your income for the year. The easiest way to do that is by looking at your annual profit and loss statement (P&L), which is generated with bookkeeping entries from your general ledger.
The problem is, if you haven’t recorded all of your business transactions on the books—if you’ve fallen behind, or you never established a bookkeeping system in the first place—you can’t generate a P&L. Meaning, you can’t report your income on your tax return.
As a result, many business owners who have fallen behind on their books spend tax season catching up, categorizing a bunch of transactions retroactively, chasing down records of deductible expenses, and generally trying to get everything in order so they can file.
If you’re behind on your bookkeeping, the best thing you can do is take care of it before tax season arrives. That way, instead of spending the first few months of the year trying to catch up on bookkeeping so you don’t miss the filing deadline, you’ll have everything you need at your fingertips when tax season arrives.
Pull receipts from the cloud
Back in the old days, when business owners paid for goods and services using cash or (gasp!) checks, it was incumbent upon them to save every paper receipt.
This gave rise to the shoebox phenomenon: A shoebox, often tucked away in the bottom drawer of your desk, where you stuffed all your receipts. At the end of the year, it was up to you to organize them in a file for safekeeping.
When the IRS audits a business, they can request records of deductible expenses as far back as three years (or even six years, if they suspect you of fraud.) Meaning, you’d better have all your receipts on hand to prove the expenses you deducted on your taxes were real.
Good news if you’re prone to paper cuts: The shoebox of old has largely been replaced by the cloud.
Bad news if you’re disorganized: You still need to keep your receipts filed away according and, if possible, categorized. Bookkeeping best practices demand it, and so will the IRS in the event of an audit.
You likely pay for many of your deductible expenses online. Examples include:
- Office or home office utilities, including phone and internet
- Booking and scheduling software services
- Teleconferencing apps
- Google suite
- Web hosting
You may even have the option to have your receipt emailed to you when you make deductible business purchases at brick and mortar stores, such as when buying office supplies or furniture. And in some cases, cafes and restaurants may even email you a receipt, which makes business meals easier to track and deduct.
The problem is, all these digital receipts are stored in different places. To see your phone bills, you need to log in to your carrier’s website. Bills for web hosting or other online services may arrive in your inbox as emails, or they may only exist under your account preferences when you log in to use the service.
Before tax season arrives, transfer all those digital receipts to local storage—your computer’s harddrive or, better yet, a USB key dedicated to one particular tax year. Not only will you ensure you don’t lose access to your deductible receipts, you’ll have them organized and on-hand in case you need to give them to the IRS.
Try to anticipate any outstanding tax payments or refunds
If you pay quarterly taxes, you estimate the amount you’ll owe the IRS in tax payments after the year is over, and pay that amount in installments.
In the event your estimate is too high, you’ll receive a tax refund. If your estimate is too low, you’ll have to pay the outstanding amount after you make your final quarterly tax payment for the year, in January of the following year.
(Our article on quarterly taxes for therapists explains how it all works.)
If the end of the year is approaching, it means you’ve already made a significant amount of your income for the year. This is a good time to:
- Recalculate your estimated tax burden
- See how close your first estimate was to what your tax bill is likely to be
- Try to anticipate any outstanding amounts (in terms either of taxes owed, or tax refunds)
You can re-estimate your taxes using the first estimated taxes method in our article on quarterly taxes by calculating your average monthly income, then using your tax form (Form 1040 if you file as an individual or Form 1120 if you’re incorporated) to calculate what you owe in taxes.
If you follow these steps, you’re more likely to be prepared in the event you need to pay the IRS more money. Alternatively, if you know how much the IRS will owe you as a refund, you can look forward to that cash injection next year.
Make sure you have all the information you need to file Form 1099s for contractors
Have you hired contractors this year? If so, you’ll need to deliver each one a copy of Form 1099-NEC during tax season, and send another copy to the IRS.
You can learn more about this requirement from our guide to hiring contractors for therapists.
In order to fill out a 1099 for your contractor, you need their taxpayer info. That includes information like their full name and address, as well as their taxpayer identification number (TIN) or Social Security Number (SSN).
Typically, contractors will provide this information by sending you a Form W-9 when they begin working for you. If you don’t have a Form W-9, you’ll need to chase down the contractor and get them to fill one out.
That’s easier to do before tax season arrives, when your schedule is (relatively) less hectic. So, if you can, track down your contractors’ information ASAP. Your future, busy self will thank you.
Decide which structure to elect
There are two reasons to rethink your business structure when tax season approaches:
- You have a limited liability company (LLC), which can elect one of a variety of different entity types at tax time
- Your practice has grown over the past year, and you may benefit from choosing a new entity type
LLC therapy practices electing different entity types
While they’re formed at the state level, LLCs may file taxes at the federal level as one of a variety of different business entities.
If your therapy practice is an LLC, you may file your taxes as:
- A disregarded entity (effectively the same as a sole proprietor)
- A partnership
- An S corporation. (The deadline to file Form 2553, electing S corporation status for the current year, is March 15th.)
Your ability to file as each of these different entity types will depend upon how you run your business, and it’s best to consult with your account before going ahead with an election. Plus, there may be tax benefits to electing a new business structure, and the best way to understand them is to talk to a professional.
Switching your therapy practice’s business structure
The end of the year is a good time to review how your business has performed, and decide on any changes you’d like to make. Changing your business structure is one such change.
For example, if you’re a sole proprietor, converting your therapy practice to an S corporation can:
- Help protect you from financial and legal liability
- Open up the possibility of sharing ownership of your business in the future (with employees or business partners)
- Potentially affect your tax bill
Before the year is over, book time with your accountant to review the previous year’s finances, and discuss whether it’s time to make a change.
Make financial admin resolutions for the year ahead
In our personal lives, as we approach the end of the calendar year, we may slow down to review the year that has passed, and make resolutions for the new year ahead. Your business can benefit from a similar practice.
What changes in how you handle your business financial admin would you like to see in the year to come? What concerns do you have about how your business is currently operating?
All too often, tax season is a frantic rush to get everything in order so you can file before the deadline. You may not have the time to slow down and reflect on deeper questions about your therapy practice and its future later. Taking time to reflect on these questions now—with the help of an accountant or tax advisor, if possible—can help you make concrete plans.
For instance, you may decide to:
- Hire a professional bookkeeper to help reduce your work burden and make tax season simpler
- Set up a comprehensive filing system for business records like receipts, invoices, and W-9s from contractors
- Set a schedule to review your estimated tax payments, and recalculate them if needed
- Create annual or quarterly budgets to better help you plan your spending
For more inspiration, check out our guide to tax basics for sole proprietor therapy practices.
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Need help getting everything prepared for tax season? Learn more about hiring an accountant for your therapy practice.
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.
What Therapists Need to Know About the Home Office Deduction
If you’re a therapist who sees telehealth clients from home, you may be able to claim the home office tax deduction.
However, some of the costs of running your home office—such as utilities and rent—overlap with personal expenses. Deducting them is a bit more complicated than it would be if your office was based outside the home.
By following a few simple guidelines, you can determine the best way to deduct home office expenses and save money on taxes.
Who qualifies for the home office deduction for therapists?
To qualify for the home office deduction, the place you work from needs to be considered a valid home office by the IRS.
The home office deduction is only available to self-employed individuals; if you work for someone else in addition to running your own practice from home, you won’t qualify.
Besides that, the IRS uses three guidelines to determine whether your home office qualifies:
- Exclusivity
- Regularity
- Precedence
Luckily, none of these are as imposing as they sound. When you understand what each guideline means, you’ll be able to set up a home office that qualifies.
Exclusivity
The space should be used exclusively for business activities.
Keep in mind that “space” doesn’t mean the same thing as “room.” You can use a portion of a larger room as your home office. For instance, if your live-in partner also works from home, they might use one half of a spare bedroom as their office, while you use the other half.
The important thing is that you use that space only for work. If you spend 30% of your time in your home office running client sessions and taking notes, and the other 70% playing computer games, it doesn’t qualify as a home office.
Similarly, if your home office doubles as a guest bedroom, it won’t qualify for the home office deduction, since the space is not a dedicated office.
Regularity
You should use your home office on a regular, fairly predictable basis—not occasionally or randomly.
“Regular” doesn’t necessarily mean “frequent.” If you’ve just started your practice, you only have a few clients, and you spend five hours per week using your home office for work, it still qualifies as a home office.
On the other hand, you could work more hours per week, but if you didn’t do so on a regular basis, your home office might not qualify.
Precedence
Your home office must be the number one place you conduct business.
Many costs associated with running an office for your therapy practice are tax deductible. The IRS doesn’t want you renting a business space outside your home and deducting it from your taxes, then going home to do additional work and deducting additional taxes for your home office space. You need to choose one or the other.
Suppose you run 90% of your therapy sessions remotely, out of your home office. The other 10% you do in-person, subletting another therapist’s office at an hourly rate. In this case, your home office is your primary place of business—you can deduct the cost from your taxes.
Now, suppose the percentages are flipped: You do 90% of your sessions in-person at an office you sublet, and 10% of them remotely, from your home office. In that case, your home office would not qualify, and you could not deduct it from your taxes.
Bottom line: The bulk of your working hours, and the most important tasks you complete as part of running your practice, should take place in your home office.
How to calculate the home office deduction for your therapy practice
You have two options when it comes to calculating the home office deduction: the standard method and the simplified method.
The standard method sets no limit on the size of your home office. The simplified method has a limit of 300 square feet.
Besides the matter of size, depending on your household expenses, either the regular or the simplified method may give you the largest tax deduction.
It’s a good idea to calculate your deduction using both methods, and choose the one that benefits you the most.
Home office deductions using the standard method
To take the home office deduction using the standard method:
- Calculate the square footage of your home
- Calculate the square footage of your office space
- Determine what percentage of your home is office space, based on square footage
- Multiply your total qualifying expenses for your home by this percentage
Example: Your home is 2,000 square feet and you use 200 square feet as office space. That's a percentage of 10%. Your total household expenses, including rent, utilities, insurance, and necessary repairs, comes to $3,000 per month. When you multiply $3,000 by 0.10, you get $300. You can deduct the equivalent of $300 per month from your taxes as home office expenses (an annual total of $3,600).
Home office deductions using the simplified method
The home office simplified method lets you deduct $5 per square foot per year from your taxes, based on the square footage of your office space up to a limit of 300 square feet (a maximum deduction of $1,500.)
Example: Your home is 2,000 square feet, and you use 200 square feet as office space. The total monthly cost of maintaining your home is $3,000, or $36,000 per year. With the simplified method, you can deduct an annual total of $1,000 ($5 x 200) from your taxes.
Deductible home office expenses for therapists using the standard method
If you are using the standard method to calculate your deduction, there are two types of home office expenses you can claim:
- Direct deductions, expenses which pertain 100% to running your home office, and
- Indirect deductions, expenses which pertain partly to your home office, and partly to the rest of your home
Whether direct or indirect, the expenses you claim as part of the home office deduction using the standard method must not already be part of your business books, and deducted elsewhere as a business expense.
Direct deductions for your home based therapy practice
One common example of a direct deduction is the cost of home renovations made exclusively to your office space. So long as it isn’t already listed as a deduction on your business books, you can claim it using the standard method.
Indirect deductions for your home based therapy practice
Indirect deductions are for expenses that apply to your entire house, whether you rent it or own it:
- If you rent your home, you can deduct a percentage of your monthly rent that coincides with the percentage of your home you use as an office
- You can deduct a percentage of the total cost of utilities that coincides with the percentage of your home you use as an office
- If you own your home and aren’t already claiming mortgage interest and property taxes on Schedule A, you may claim them as part of your home office deduction.
Keeping records to support your home office deduction
The home office deduction is one of the most easily auditable deductions on your tax return.
No tax professional can advise you on the likelihood of being audited. As with all tax deductions, it’s best to be prepared for the worst; keep organized receipts for all expenses you claim.
In the event of an audit, the IRS may ask for photos of your home office and the areas around it in order to prove exclusivity.
How to deduct home office expenses on your tax return
If your therapy practice is a sole proprietorship, or an LLC filing as a “disregarded entity,” you report your home office deduction on Schedule C of IRS Form 1040.
If your practice is an S corporation, or an LLC filing as an S corporation, you’ll deduct your home office expenses on IRS Form 1120S.
Finally, if your business is a partnership, or an LLC filing as a partnership, the individual partners deduct their home office expenses on their individual tax returns.
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As always, it’s wise to consult with an accountant before claiming any major deductions on your tax return.
Trying to take advantage of deductions you don’t qualify for, making miscalculations, or failing to keep adequate records could result in hefty fines (and a lot of administrative headaches).
However, if you’ve got an accountant working for you and you’re ready to explore the world of deductible expenses, check out our complete list of tax deductions for therapy practices.
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.
What to Do if You Can't Pay Your Quarterly Taxes as a Therapist
If your therapy practice has a quarterly tax deadline coming up and you can’t afford to pay, don't panic.
While you may be penalized by the IRS, there are steps you can take immediately to pay less.
But first, a quick refresher on quarterly estimated taxes.
Who needs to pay quarterly taxes?
If your therapy practice will owe more than $1,000 in taxes this year, you’re required to estimate the total amount you’ll owe and pay it in quarterly installments. The limit is $500 in taxes owing if your therapy practice is a corporation.
Estimating your quarterly tax payments is less complicated than it sounds. In fact, if you have a copy of your therapy practice’s tax return from last year, you can base your estimates on it.
Our guide to quarterly estimated taxes for therapy practices gives you the full rundown.
When are quarterly estimated tax payments for therapy practices due?
Your quarterly payments for the current tax year are due:
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15
The due date falls on the 15th of the month in question, unless the 15th happens to be a weekend or a national holiday. In that case, the deadline moves ahead to the next available day. For example, if June 15th falls on a Saturday, the deadline changes to June 17th, a Monday.
Don’t let the deadline for the fourth quarter of the year confuse you. You will pay estimated taxes for the last quarter of the year prior on January 15th—after the year comes to an end. The first tax payment for the new year is due April 15th.
What does the IRS do if you don’t make your quarterly estimated payment?
The IRS will penalize you if:
- You fail to make a quarterly payment
- You make your quarterly tax payment late
- You pay less than you owe
In all of the above cases, you’ll be charged a penalty, the value of which is determined based on how much you fail to pay. You can expect to be penalized less if you pay a portion of the amount you owe, rather than none at all.
How does the IRS calculate quarterly tax penalties?
It’s a bit tricky calculating exactly how much you’ll owe the IRS if you fail to pay (or only pay a portion of) the quarterly tax you owe them.
To do so, you’ll need to download IRS Form 2210. It changes every year. Make sure you have the Form 2210 that’s right for your current tax year.
Typically, you don’t need to file Form 2210—you can just use it as a worksheet to calculate how much you owe.
Form 2210 lists the penalty rates for the current tax year. For 2022, the penalty rates are:
- Q1 (January to March): 3% of unpaid estimated taxes
- Q2 (April to June): 4% of unpaid estimated taxes
- Q3 (July to September): 5% of unpaid estimated taxes
- Q4 (October to December): 6% of unpaid estimated taxes
Example: You pay your taxes in full for Q1, but in Q2 you underpay. You owe an estimated $6,000 in taxes, but only pay $4,000. As a result, you owe the IRS $2,000, plus a 4% penalty ($80), for a total of $2,080 outstanding.
Calculating how much you owe gets trickier when you underpay (or fail to pay) in multiple quarters, with multiple penalty rates. You can try to muddle through IRS Form 2210 on your own. If you’re using tax software, it will also take a stab at finding the right amount.
The most accurate way to calculate your penalty is to get help from an accountant or the tax professionals at Heard. However, at the end of the day, it is the IRS that determines the final penalty amount.
Not only will they help you figure out how much you owe, they may be able to advise you on creating a budget that takes into account the penalty and helps you pay your tax bill ASAP.
What to do when you can’t pay your quarterly taxes
Even with the most careful budgeting, unforeseen circumstances may cause you to come up short when it’s time to pay your estimated taxes.
When it comes to your entire tax bill for the year, the IRS offers a number of options for paying in installments or even negotiating a lower fee. You can learn more from our article on IRS penalties for therapists.
But when it comes to quarterly installments, these options aren’t available. All you can really do is pay as much of what you owe as possible, as soon as possible.
Not only will doing so reduce the amount you owe in penalties, but it will send a message to the IRS that you are doing your best to comply with their requirements, even if your financial situation is preventing you from doing so completely.
This may weigh in your benefit during feature dealings with the IRS—for instance, if you need to negotiate an installment plan to pay your taxes later on.
How you may avoid paying quarterly estimated tax penalties
Penalties for late or underpaid quarterly taxes are waived if, by the end of the year, you have paid:
- 90% of the total taxes (before credits) you owe
- 100% of what you paid in taxes last year (before credits)
How to make sure you can pay quarterly taxes for your therapy practice
If you’ve run into problems making your quarterly tax payments, here are some steps you can take to make sure it doesn’t happen again.
Build a better budget
Effective budgeting means taking a comprehensive, realistic look at how your therapy practice can expect to spend and earn money in the future. That means you’re less likely to suffer unexpected shortfalls of cash.
Learn more from Heard’s article on how to build a budget for your therapy practice.
Set up a bookkeeping system that works
When you have a functional, up-to-date bookkeeping system—whether one you handle yourself, or one you outsource to a bookkeeper—you always have accurate data on how your business is performing. You also get access to financial statements that help you estimate and plan your quarterly taxes.
Learn how to choose accounting software for your therapy practice.
Get help from an accountant
Hiring an accountant or working with the professionals at Heard guarantees you get input about your finances from an informed, sympathetic third party. An accountant can help you plan strategies to budget for your tax bill and withhold income to cover your quarterly taxes.
Check out our guide to hiring an accountant for your therapy practice.
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Looking for a refresher on quarterly tax payments? Our article on quarterly estimated tax payments for therapists has you covered.
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.
Mizanur Rahman is a Senior Accountant at Heard, where he helps therapists with accounting, bookkeeping, and taxes.
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Transparent plans for your practice
We offer two annual plan options for solo and group practices, billed monthly or annually.
- Talk to an accountant who knows your practice
- Track your practice's financial health
- Get your federal and state income taxes done right
- Tax-deductible and pays for itself within months
- Quarterly and yearly reviews with a CPA
Solo Practice
Group Practice
$199
/mo
$169
/mo
$299
/mo
$255
/mo
BILLED MONTHLY
BILLED ANNUALLY
That’s
$360
$528
in annual savings
*Up to 10 therapists