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10 key tax deductions for self-employed therapists and psychiatrists

While some deductions seem obvious, you may be missing important ones.

January 24, 2025

11 min read

Any business owner should be aware of expenses that can be deducted from your taxes. Essentially, these expenses reduce your taxable income, which means you may owe less when it’s time to pay taxes. While some deductions may seem obvious, you may be missing important ones. “There are a lot of therapists who don’t know they can deduct as business expenses,” says CPA Felicia Seton, owner of The CPA for Therapists.

That said: it’s also important to be careful with your taxes, because mistakes can be costly. There’s no exact science, but the IRS can flag deductions that aren’t actually used for your business and require you to provide more information (which can be time-consuming). Hiring a dedicated CPA is a great way to maximize deductions while ensuring you provide all the necessary information required when filing your taxes, says Seton. 

Below, find 10 tax deductions self-employed therapists and psychiatrists should know about.

Continuing education

CEUs can be expensive to keep up with, but Seton says continuing education courses are one of one of the most common deductions for therapists. This includes online or in-person courses, conferences, and seminars that help you learn and implement practices that help you better support your clients. Even subscriptions to trade magazines are tax-deductible, as long as they’re related to psychotherapy. One note: You can’t deduct the cost of education used to meet minimum requirements of your profession.

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Membership fees

Similarly, you can also deduct membership fees for professional organizations you’re part of — for example, the American Psychological Association or the American Association for Marriage and Family Therapy. Professional groups like these are a great way to build your network for professional referrals and gain support in the field.

Books and therapeutic aids

Books about therapeutic modalities, or subscriptions to online resources (such as the Wiley Treatment Planner), can also be a tax write-off as long as they’re related to your therapy practice. Keep your receipts! Therapeutic aids you use in practice, such as therapeutic toys or games or weighted blankets or pillows for your office, are deductible as well.

Office rent

The space in which you practice therapy is also tax deductible, whether it’s an office you rent or a dedicated room in your home. If you work from home, Seton recommends asking your tax accountant to help you calculate the correct tax deductible amount, as it also includes mortgage or renters’ insurance. Utilities in your office space, such as your energy and internet bill, are also tax deductible. 

Office supplies

Supplies that help you do your job — like printer ink, paper, pens, notebooks, stationery, and even small furniture — are also typically tax deductible for self-employed therapists. Keep track of your spending in this area so you can report it on your tax return.

Therapy software

Booking, billing, and electronic health record (EHR) software are integral to your therapy practice, and they can be costly. Luckily, these commonly used programs are also tax deductible, says Seton.

Marketing

From business cards and networking event fees to the cost of your website domain, social media marketing, and online directories, anything you use to market your services and practice can be deducted from your income.

Insurance

Liability insurance for your practice is a business expense, so you can write it off when you file your taxes. You should also deduct your homeowner’s or renter’s insurance payments, depending on where you practice therapy.

Contractors and employees

Payments to other professionals for the services they provide, including your attorney, web designer, accountant, and administrative or bookkeeping help, are typically tax-deductible. If you own your own group practice, then payments to contractors or employees are deductible, too.

Retirement contributions

Self-employed therapists, Seton says, can (and should!) contribute to a self-employed retirement fund (often called a SEP IRA). If you’re registered as a corporation, then you can deduct your  contribution from your business income. Contributing as a sole proprietor reduces the overall amount of your personal taxes. A tax accountant can help you determine the best amount to contribute based on your business.

Not sure if you’re on the right track? Consider enlisting the help of an experienced professional — ideally, an accountant with experience working with self-employed therapists. While working with an accountant is an investment, hiring an expert can ultimately help you save both time and money. “Plus, the expense of paying your tax accountant is tax-deductible,” says Seton.

Practice in-network with confidence

Simplify insurance and save time on your entire workflow — from compliance and billing to credentialing and admin.

Talk to a practice consultant

This content is for general informational and educational purposes only and does not constitute clinical, legal, financial, or professional advice. All decisions should be made at the discretion of the individual or organization, in consultation with qualified clinical, legal, or other appropriate professionals.

© 2026 Therapymatch, Inc. dba Headway. All rights reserved. No part of this publication may be reproduced without permission.

Starting a practice