Tax Preparation and S-Corp Services for Therapists
Wellness Fi provides tax preparation for therapists, counselors, psychologists, and group practice owners. Your returns are prepared by a dedicated tax advisor who works only with mental health practices. And because the same team keeps your books every month, your advisor already knows your numbers before tax season starts.
300+ Practices Served
300+ Private Practices Served Across the US
CPA’s & EA’s
CPAs and IRS Enrolled Agents on staff
Done-For-You
Accounting done for you. Not another software you have to manage.
Services
What is tax preparation for therapists?
Tax preparation for therapists is preparing and filing a therapy practice’s business return and the owner’s personal return. Done well, it also covers what general preparers often miss: S-corp payroll rules, quarterly estimates, licenses in more than one state, and deductions like supervision, CEUs, and malpractice insurance.
Why private practice therapist taxes are different
From the outside, a therapy practice looks simple: one service, a few expenses. But private practice therapist taxes have a few traps that catch most owners at least once. Here is what we watch for.
No one is withholding for you
When you work for yourself, you pay your own taxes during the year, usually four times. If those payments are off, you find out in April, sometimes with a penalty. We figure out your federal and state estimates every quarter and give you a clear number to set aside each month.
Self-employment tax adds up
On top of income tax, self-employed therapist taxes include Social Security and Medicare on your practice profit. As your income grows, this is usually the biggest reason the S-corp question comes up.
Insurance income rarely lines up
Insurance panels pay late, in batches, and sometimes short, and the income forms they send don’t always match what landed in your bank. We check those forms against your books before anything is filed.
Licenses
Licenses in more than one state. Telehealth makes it easy to see clients across state lines. It can also mean you owe returns in more than one state.
practice expenses
Your expenses are specific to your work. Clinical supervision, CEUs, licensing fees, malpractice insurance, and practice software all need to be recorded correctly to count at tax time. For details, see the full list of therapist deductions
Our tax preparation for therapists includes:
Our tax preparation for therapists takes the stress off of filing multiple tax returns. Our in-house licensed CPAs and Enrolled Agents prepare and file federal and state tax returns for the business & the individual.
01
Business Tax Return
Form 1120-S for S-corps, or Form 1065 for partnerships and multi-owner LLCs.
02
Personal Tax Return
Form 1040, prepared together with your business return so the two match. If you’re a sole proprietor or single-member LLC, your practice is reported right on your personal return.
03
State Returns
Your home state & other states where you’re licensed or see clients.
04
Tax Estimates
Quarterly federal and state tax estimates, so you pay the right amount during the year.
03
Tax Advisor
A dedicated tax advisor who prepares your return and answers your questions between tax seasons.
06
IRS Help
Help with IRS letters and notices on Full Service and CFO plans.
Want more support?
Add a dedicated tax advisor, year-round tax strategy, and two planning meetings a year. Or add a monthly CFO partner for cash flow, hiring, and growth decisions. We also handle tax preparation and S-corp help when you are ready.
How bookkeeping and taxes work together
Most tax headaches start with the books. When your preparer only sees your numbers once a year, they’re working from a box of statements and their best guess.
Your bookkeeper updates your books each month. Your tax advisor uses those numbers to plan ahead, set quarterly estimates, and prepare your return. One team, one set of books.
Tax filing is part of your monthly plan because a reliable return starts with accurate books. Keep everything connected throughout the year with our bookkeeping services for therapists.
S-corp for therapists: election, setup and compliance
Whether to become an S-corp is the question we hear most often. Here’s how we help, from the first “should I?” to running one correctly.
When it’s worth a look
For many therapists, an S-corp starts to make sense somewhere between $50,000 and $100,000 a year in profit. Below that, the extra payroll and filing work can cost more than it saves. We run the numbers with your real profit before you decide. For the full comparison, read should your practice be an S-corp.
S-corp setup and election ($1,500, one time). Once the numbers say yes, we handle the setup:
- Preparing and submitting your S-corp election
- Advice on setting a reasonable salary for yourself
- Payroll setup with a provider like Gusto (you pay the provider directly)
- Accountable plan documents, so the practice can repay you for business costs like a home office
- General S-corp advice, plus up to three hours of support in your first year
Staying compliant after you elect
An S-corp comes with extra work every year: payroll, a separate business return, and a March 15 filing deadline for most S-corps. Our S-corp compliance service keeps an eye on all of it, so nothing slips. See our guide to S-corp and partnership tax deadlines.
Missed the election deadline?
You may still have options. The IRS offers relief for late S-corp elections in many cases. We’ll check whether you qualify and file it for you.
Our Pricing
Flexible pricing & service options.
Quarterly bookkeepings
Quarterly reports
Quarterly tax estimates
For low-volume practices
Most Popular
Monthly bookkeeping
Monthly reports
Dedicated tax advisor
Bi-Annual tax strategy meetings
Everything in full service +
Cash flow planning
Hiring & compensation modeling
Monthly CFO consults
Our Services For Wellness Practices
Our goal with every client: save you twice what our service costs each year.
Bookkeeping
A dedicated bookkeeper reconciles your accounts monthly or quarterly and sends you clear reports. Your books stay tax-ready all year.
Tax Preparation
Business and personal returns, federal and state. We file 1120-S, PLLC, partnership, and individual returns, including multi-state returns for telehealth practices.
S-Corp Setup
We run the numbers to see if an S-corp saves you money. If it does, we file the election, set your reasonable salary, and put an accountable plan in place.
Advisory
A dedicated tax advisor who plans with you all year: deductions, quarterly estimates, your S-corp salary, and two strategy meetings a year. Included in Full Service and CFO plans.
Meet Our Licensed Team
At Wellness Fi, you’re working with a team of licensed professionals that know your business, you & the accounting & tax compliance that matters most.
nicole Brame, ea
IRS Enrolled Agent and Senior Advisor. 7+ years advising practice owners on tax savings.
Sarah Al Haffar, CPA
15+ years in accounting, tax preparation, and tax advisory.
Kathy Presto, EA
IRS Enrolled Agent. 9+ years in tax. Our California tax specialist.
Frequently asked questions about tax preparation for therapists
Find answers to commonly asked questions about our bookkeeping services for psychologists.
Not always. A simple first-year practice can be filed by any good preparer. A specialist helps most once you have insurance income, an S-corp, licenses in more than one state, or a growing practice. Someone who works only with therapists already knows the deductions, deadlines, and payroll rules that apply to you.
Not necessarily. What matters most is that your preparer knows therapy practices, works from accurate books, and plans with you during the year. Our tax advisors work only with mental health practices. If your situation ever calls for a specialist, such as audit representation, we’ll tell you and help you find one.
With us, tax preparation for therapists is $60 per month for a personal return and $75 per month for a business return, billed as part of your monthly plan. Additional state returns are $150 each, and S-corp setup is $1,500 one time. Monthly plans start at $250 per month. We’ll give you an exact number on a free consult.
Common write-offs include CEUs and licensing fees, clinical supervision, malpractice insurance, practice software, office rent or a qualifying home office, and business mileage. Each one has rules that matter, so see the full list of therapist deductions in our deductions guide.
For many therapists, an S-corp is worth a look once yearly profit reaches somewhere between $50,000 and $100,000. Below that, the extra payroll and filing costs can outweigh the savings. We run the numbers with your real profit before you elect, and if the timing isn’t right, we’ll tell you.
Often, yes. The IRS offers relief for late S-corp elections in many cases. We’ll check whether you qualify and prepare the election for you.
If you’re licensed in more than one state or see clients in another state, you may need more than one state return. We work out which states you need to file in and prepare each return, at $150 for each additional state. If a situation is unusually complex, we’ll tell you up front.
Your bookkeeper keeps your books current every month, and your tax advisor uses those same books to set your quarterly estimates, plan with you, and prepare your return. It’s one team with one set of numbers, so you’re never coordinating between two firms.
We can help with unfiled returns, amended returns, and IRS notices. Bring what you have to a free consult, and we’ll tell you what it will take to get current. There’s no judgment. Many of our clients came to us behind.