Tax write-offs for therapists: An ultimate checklist

Wondering about all the tax write-offs for therapists? And curious to find out about the self-employed therapist tax deductions you may qualify for?

Tax season can be a stressful time for anyone. And, as a therapist running a private practice, you might find yourself overwhelmed at the prospect of filing your taxes. 

Fortunately, there are a number of tax write-offs for therapists and clinicians in private practice that you may qualify for. 

Understanding which expenses are deductible on your taxes can help you save money, streamline your filing process, and free up more time to focus on what matters most to you.

In this article, we’ll walk you through some of the most common (and sometimes overlooked) tax write-offs for therapists and mental health clinicians. 

Additionally, we’ve created a self-employed therapist tax deductions checklist to use when filing your taxes this year. 

So, if you’re wondering what is tax deductible as a therapist, let’s dive into the deductions you might be eligible for along with tips on how to maximize them.

Essential technology and practice management deductions

When you work as a therapist in private practice, your digital infrastructure is fully deductible. This includes practice management software, electronic health records (EHR) systems, and credit card processing fees.

The cost of SimplePractice’s EHR solution is fully tax deductible. You may enter the SimplePractice EHR under 27a “Other Expenses” on form 1040 Schedule C. Then, in Part V, under “Other Expenses,” create your own description and enter the amount and total on line 48.

Bank fees for your business account are often overlooked tax write-offs for therapists as well. If you're using a telehealth platform or maintaining a professional website, these expenses are also tax deductible for therapists and clinicians.

The deduction for “Other Expenses” can also include things like:

• Video conferencing software (Zoom, Doxy.me, etc.)

• Audio/visual equipment (webcams, microphones, speakers)

• Internet fees (if used for business purposes)

• Security and privacy software

Home office deductions

If you conduct therapy sessions from home or manage your private practice business from your residence, you might be able to claim the home office deduction. 

This deduction allows you to write off a portion of your home expenses based on the percentage of your home used exclusively for business purposes.

Eligible expenses for those using the home office deduction may include:

• Rent or mortgage interest

• Utilities (electricity, water, internet)

• Home insurance

• Property taxes

• Repairs and maintenance

• Cleaning services and supplies

• Soundproofing or privacy measures

• Security systems

Note on furniture & equipment: Office furniture and equipment (desks, chairs, therapy couches, computers, etc.) should be tracked separately from your home office percentage. For 2025, these items may qualify for an immediate 100% deduction under Section 179 (up to a $2.5 million limit) or through 100% Bonus Depreciation, rather than being depreciated over several years.

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Professional development and training costs

Continuing education is key to maintaining your licensure and enhancing your skills as a mental health clinician. The IRS allows you to deduct costs related to professional development.

Eligible tax write-offs for therapists include:

• Conference fees and related travel expenses

• Workshop and seminar fees

• Online courses and certifications

• Continuing education courses and materials

• Subscriptions to professional books and journals

• Professional association memberships

• Clinical supervision costs

As long as the training directly relates to your therapy practice, you can deduct these expenses, whether they occur in-person or online. Just be sure to keep receipts and records.

Note: Education expenses are only deductible if they maintain or improve skills in your current profession after you're already licensed—you can't deduct the cost of your initial degree, licensing requirements, or training that qualifies you for a completely new field.

Qualified business income (QBI) deduction

One of the most valuable tax breaks for self-employed therapists is the Qualified Business Income (QBI) deduction, also known as the Section 199A deduction. This allows eligible therapists to deduct up to 20% of their qualified business income, significantly reducing their taxable income.

How it works: If you operate your therapy practice as a sole proprietor, single-member LLC, partnership, or S-corporation, you may be able to deduct 20% of your business income on your personal tax return.

Income thresholds for 2025: Therapy is classified as a "Specified Service Trade or Business" (SSTB), which means the deduction phases out at higher income levels:

• Single filers: Full deduction available if taxable income is below $197,300

• Married filing jointly: Full deduction available if taxable income is below $394,600

• Phase-out range: The deduction gradually phases out over the next $50,000 (single) or $100,000 (married) of income above these thresholds

For example, if you're a single therapist with $150,000 in qualified business income and your taxable income is below $197,300, you could deduct $30,000 (20% of $150,000) from your taxable income.

Important note: The QBI deduction calculation can be complex, especially if you're near the phase-out thresholds or have multiple income sources. Consider working with a tax professional to ensure you're maximizing this deduction.

Licensing fees and insurance

When considering all the tax write-off for therapists, keep in mind that the costs related to renewing and maintaining your license are typically deductible. You can also deduct any insurance related to your practice, such as liability insurance, business insurance, or disability insurance premiums if they are business-related.

Other related fees that are typically deductible include:

• State licensure renewal fees (note: initial licensing fees are treated as startup costs)

• Malpractice/professional liability insurance

• Business overhead insurance

• Legal consultation fees

• Accounting and bookkeeping services

• Business coaching

• IT support services

Note on "first-time" costs: While annual renewals are regular expenses, your initial licensing fees, business registration, and pre-opening legal fees are treated as startup costs. For 2025, the IRS allows you to deduct up to $5,000 of these startup costs in your first year of business.

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Client care and office supplies

If you rent or own office space, the costs related to your physical practice space are deductible. This includes both direct rent payments and expenses related to equipment or furniture you use in your office.

Eligible expenses include:

• Rent or lease payments for office space

• Office furniture (desks, chairs, filing cabinets)

• Technology (computers, phones, printers)

Note on furniture and equipment: For 2025, you can now deduct the full cost of office furniture and equipment in the first year, rather than depreciating over several years. Under Section 179 (up to $2.5 million) or 100% Bonus Depreciation (for purchases after January 19, 2025), you can immediately expense items like desks, therapy couches, computers, and other office equipment.

Don't overlook the smaller self-employed therapist tax deduction expenses that support your practice:

• Basic office supplies (paper, pens, folders)

• Printing and copying costs

• Client comfort items (tissues, water service)

• Reference materials and workbooks

• Sanitizing supplies and safety equipment

Advertising and marketing

Other tax write-offs for therapists you may be overlooking are the marketing and advertising costs for your practice. 

Promoting your private practice can cost you money, but you can deduct marketing-related expenses when filing taxes for private practice therapists.

For example, eligible expenses include:

• Website hosting and design

• Business cards, flyers, and brochures

• Google or social media advertising

• Marketing consulting fees

• Directory listings (like Psychology Today)

• Networking event costs

• Professional photography for marketing materials

The key here is that the expenses must be directly related to your practice. If you’re advertising your services to potential clients, they’re likely deductible.

Travel and mileage

If you drive to meet clients or attend work-related events, you may be able to deduct your vehicle and travel expenses. For instance, if you provide home visits or travel to conferences, you can deduct the miles driven or public transportation expenses.

Note: You must choose between two methods for your vehicle: the Standard Mileage Rate or Actual Expenses (gas, repairs, insurance). You cannot claim both.

Eligible expenses include:

• Mileage for business-related travel: You can use the IRS standard mileage rate for the current year.

  • For 2025 (filing in 2026), the rate is 70 cents per mile. For trips taken in 2026, the rate is 72.5 cents per mile.

• Actual vehicle expenses: If you don't use the mileage rate, you can deduct the business percentage of gas, maintenance, tires, and insurance.

• Public transportation costs: Train, bus fares, and rideshares like Uber/Lyft.

• Airfare, lodging, and meals: For business-related trips and conferences.

• Parking and tolls: These are deductible even if you use the Standard Mileage Rate.

Be sure to maintain a log of your mileage or travel expenses, and consider using apps like MileIQ or Everlance to simplify tracking.

Client-related expenses

There are some expenses you incur directly in relation to client care that are deductible. 

These could include:

• Costs for therapy-related materials, like books, worksheets, clinical assessment tools, and other therapeutic resources

• Payment for a consultation with another therapist or professional (e.g., for supervision or collaboration)

• Fees paid for background checks or drug screenings, if relevant to your practice

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Employee and contractor payments

If you hire employees or contractors for your private practice, you can deduct their wages and related expenses. 

This includes payments for:

• Office staff (administrative assistants, receptionists)

• Contractors (e.g., billing specialists or other therapists)

Make sure to keep records of wages paid and any other expenses related to employees or independent contractors.

Miscellaneous business expenses

Other miscellaneous expenses that are related to running your practice can also be deducted. 

These may include:

• Business-related books or subscriptions

• Telephone expenses for a business phone line

• Bank fees related to your business account

• Professional legal and accounting fees

• Cleaning and janitorial services for your office

Download the self-employed therapist tax deductions checklist at the top of this article and use it to stay organized and save time during tax season. 

Consider reviewing it with a tax professional to ensure you're maximizing all available deductions for your specific situation.

Conclusion

By keeping detailed records of your expenses and regularly reviewing your finances, you can maximize your tax savings and keep more money in your pocket.

Every therapist’s situation is unique, so if you’re ever unsure about the tax write-offs for therapists you can claim or if you have specific questions about your private practice’s tax situation, it’s always a good idea to consult with an accountant or tax professional who specializes in working with mental health professionals.

Investing time in understanding and properly documenting your deductions isn't just about tax savings—it's about building a financially healthy practice that can sustainably serve your clients for years to come.

How SimplePractice streamlines running your practice

SimplePractice is HIPAA-compliant practice management software with everything you need to run your practice built into the platform—from booking and scheduling to insurance and client billing.

If you’ve been considering switching to an EHR system, SimplePractice empowers you to streamline appointment bookings, reminders, and rescheduling and simplify the billing and coding process—so you get more time for the things that matter most to you.

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