You hold space for clients. We hold the line on your taxes. CE conferences, malpractice, multi-state telehealth licensure, and S-Corp timing handled so you keep what you earn.
Mental health is a Specified Service Trade or Business under §199A. You miss the home office, the EHR subscription, the licensure renewals, and the right entity timing. We don't.
EMDR training, CBT workshops, ICEEFT, APA conferences, group supervision, consultation groups. Books, journals, online CEU subscriptions. Fully deductible to maintain your license. We track and categorize so the IRS sees the through-line to your practice.
IRC §162(a); Treas. Reg. §1.162-5HPSO, CPH, Trust Insurance, ProAssurance malpractice premiums fully deductible. Cyber liability for telehealth practice. Business interruption. Owner disability is NOT deductible (so benefits stay tax-free); group DI for W-2 employees IS. We structure the mix.
IRC §162(a); §104(a)(3); §106PSYPACT, Counseling Compact, Social Work Compact fees, individual state license renewals, jurisprudence exams. Deductible as ordinary business expense. State income tax filings can pile up too. We coordinate which states need a non-resident return.
IRC §162(a); state §183 hobby-loss safe harborOnce you net $120K from your practice, S-Corp election usually beats Schedule C. We benchmark reasonable comp using BLS clinical psychologist / LCSW data plus your state and patient load, then take the rest as distribution free of self-employment tax. Saves $4K-$10K/yr.
IRC §1402(a); Rev. Rul. 59-221Dedicated office for telehealth sessions qualifies under §280A if used regularly and exclusively. Webcam, ring light, soundproofing, noise machine, separate phone line. Simplified method ($5/sqft up to 300) or actual expenses. We pick the bigger number.
IRC §280A(c)(1); Rev. Proc. 2013-13SimplePractice, TheraNest, TherapyNotes, Headway/Alma/Grow billing fees, Spruce HIPAA texting, Zoom Healthcare. SaaS subscriptions are deductible per §162. Off-the-shelf software §179 expensable. We log it monthly so nothing slips off the P&L.
IRC §162(a); §179(d)(1)(A)(ii)Solo LMFT, 4 years private practice, $180K net 2024, PSYPACT in 3 states. We S-Corp elected, set up a Solo 401(k), separated home office expenses, and aggregated EMDR + ICEEFT training.
$12,000 savedFederal + FICA savings on reasonable comp split plus $19K Solo 401(k) shelter at 24% bracket. State savings on top.