You're a business now — act like one
The moment client fees and insurance reimbursements lands on a 1099, the IRS puts you in the same category as any small business owner. That means self-employment tax, quarterly estimated payments — and the upside: you can deduct ordinary and necessary business expenses against what you earn.
Most therapists don't think of themselves as businesses, so they don't keep business records. Between sessions, notes, and client care, the costs pile up quietly — and the ones that never get recorded never get deducted.
The deductions most therapists can claim
1. Office rent
Session space — usually the biggest fixed cost and fully deductible.
2. Liability insurance
Malpractice and professional liability coverage.
3. CE credits and licensure
Continuing education and license renewals required to practice.
4. EHR, billing, and telehealth
Practice software, telehealth platforms, and processing fees.
5. Professional dues
APA, NASW, and association memberships.
6. Office furnishing
Furniture and supplies for the client-facing space.
7. Supervision and consultation
Fees for required supervision and case consultation.
What the IRS actually wants to see
Deductions aren't denied because they weren't real — they're denied because they weren't documented. The standard: a receipt or bank record for expenses, a mileage log with business purpose, and records made close to when the expense happened. A mileage log kept as it happens is worth far more than one reconstructed in April — the IRS knows the difference.
That's the workflow DeductionDog was built around: capture receipts by photo or by scanning your email, log drives automatically, then export the year as an accountant-ready package — every item mapped to its Schedule C line.
Related videos
5 Deductions Every 1099 Worker Forgets
Video — the write-offs that slip through the cracks, and how to catch them.
Watch3 Tax Myths 1099 Workers Believe
Video — commute miles, the $600 rule, and what actually counts as income.
WatchThe 1099 Problem
Video — why gig workers overpay, and what poor records actually cost.
DeductionDog provides record-keeping software, not tax advice. Deduction eligibility depends on your specific facts — when in doubt, talk to a qualified tax professional.