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Private Practice Taxes: What should you know?

Whether it's your first year in the office or you're running a multi-location group practice, the tax filing process can be a nightmare for many. As a therapist, there are many things to consider when it comes to tax preparation. What tax credits can you claim? Can a home office be claimed? How much should you pay in estimated taxes throughout the year? Is your business setup in the most cost effective way? These are all questions to consider before we reach end of year.

Estimated Taxes vs. Year End Taxes

As if end-of-year taxes aren't stressful enough, there's a good chance you should be paying estimated taxes on a quarterly basis throughout the year. What are estimated taxes? They are an estimation of your annual taxes - divided in bite-sized chunks - to pay the IRS at certain intervals during the year. The worst part is that if you don't make these payments, chances are you could receive a penalty fee come April 15th. It's important to speak to an accountant as soon as possible if you aren't yet paying estimated taxes as a private practice therapist.

We Specialize in Private Practice Taxes

Why is that important?

We understand the business structure

There are three common ways to structure a private practice: LLC, PLLC & S Corp. Which is best for your business? We scan your financials to figure out the most tax effective way to structure your private practice.

We know tax deductions like the back of our hand

There are various tax deductions you can make depending on the structure of your practice. Do you use a home office? Do you commute to work? How much do you spend on office supplies? These are all things to take into consideration that may not be top of a mind for a general accountant.

Tax laws are constantly changing

Tax laws around deductions, credits & reimbursements are constantly changing. It's important to work with an accountant that knows the ins and outs of your industry in order to stay full across all benefits & tax advantages for each year's return.

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