![]() Here’s where you calculate your income after taking into account refunds you made.Ĥ. This box is for reporting any refunds you made to customers over the course of the year.ģ. This is where you list everything your therapy practice earned during the year, not counting expenses.Ģ. Since you’re self-employed, and reporting income from your own business, you likely won’t be checking off the box here. ![]() In this section, you’ll report your revenue before taking into account any deductible expenses.ġ. And, if you feel like you’re in the dark when it comes to Form 1099, learn about your responsibilities when you hire an independent contractor for your therapy practice. Answer “yes” here if you answered yes for I. If you paid an independent contractor $600 during the course of the year, the answer here is “Yes.” In that case, you should be prepared to file a Form 1099 for them. If this is your first year in business, check this box. If you work at your own therapy practice (as most therapists do), you materially participate-so the answer here is “Yes.” ![]() ![]() cash basis accounting for therapists may also help. If you’re not sure what accounting method you use, check with your bookkeeper. Otherwise, list the address of your office.į. If you work from home, use your home address here. If you have an employer ID number (EIN) for your private practice, enter it here. Only fill this out if you’ve registered a DBA.ĭ. Here you’ll list your business name, or “doing business as” (DBA). For most therapists, the code to use is 621330 (“Offices of mental health practitioners (except physicians.”)Ĭ. The IRS has a list of business types, each one with a corresponding six digit code. Only enter your SSN if you don’t already have an EIN. The first chunk of Schedule C is where you’ll provide the IRS with your personal info, and key information about your therapy practice. Schedule C for therapists: a broad overviewįeast your eyes upon the glory of IRS Form 1040 Schedule C: Learn more about how to hire an accountant for your therapy practice. They can also help you understand what is and isn't deductible based on IRS tax laws. You’re less likely to make a mistake (potentially incurring IRS penalties), and more likely to benefit from expense deductions or smart tax moves that save your business money. When you work with an accountant-or the team of tax professionals at Heard-they give you personal guidance filling out Schedule C. The fastest, easiest way to file Schedule C for your therapy practiceīefore we get neck deep in a line-by-line breakdown of Schedule C, a quick disclaimer: This is a good time to look at hiring an accountant. Luckily, by the time you’re done reading this article, you’ll know the core essentials you need to complete Schedule C. Since Schedule C is the main factor differentiating your business tax return from your personal tax return, it can be a major stumbling block for therapists new to running their own practices. Schedule C is where you report the self-employment income you’ve earned running your therapy practice, and the deductible expenses you’ve incurred. You need to know how to fill out Schedule C of IRS Form 1040 if your therapy practice is a sole proprietorship or a single-member LLC.
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