Are You Feeling Sick as April 15 Approaches?

Tax season… this too shall pass. It might pass like a kidney stone, but it will pass.

No one, ever in the history of the world, has said "Omg! I love paying my taxes!" (Maybe that's a bit dramatic. I am sure there is at least one person, but it's definitely not me.)

For the average person, tax season is incredibly stressful.

But as therapists in private practice, multiply that stress by 4,592!

Even if you've planned, there's still a huge cloud of doom hanging over you feeling terrified: “How much money will I owe?" or "What if I don't have enough money to pay?"

Abigail Keegan/Unsplash/used with permission

I'm going to be honest. I don’t have a clue about how to do my taxes... but my accountant does.

He says jump, I say how high? (or more realistically he says pay X on these four dates and I follow his directions.)

It's totally normal to feel anxious about the potential of owing money, especially if you haven't planned for it.

Let's find a system that works for you to be thoughtful and mindful and prepared so you can write your checks to Uncle Sam with less angst. You don't have to like it... but this also does not need to be the most stressful thing on your plate.

Did you know that as a private practice owner, you can deduct a ton of stuff?

Here are a few ideas to help you prepare when you do your taxes.

Take advantage of every single deduction you can

The goal is to leave the most money in your pockets! Talk to your accountant for a more detailed list, but here are some things you may not have even thought of that can be a deduction:

• Clinical supervision
• Costs of your virtual platforms
• Continuing education
• Office furnishings
• Your tech (computers, phones, etc)

Save for your taxes every month. Don’t let the end of the year surprise and potentially hurt you.

• Find out what percentage you should put aside based on your tax bracket.
• Look at your income for each month and use your percentage to decide how much needs to be put aside. (Personally, I like to put my tax money in a separate account so there is no confusion about what that money is for.)
• ​This worksheet from the IRS may be a helpful place to start.

There are very few things I'm going to tell you that you must do… but here I go.

You have to know about your practice’s money in and money out and have a system to keep track of your practice’s finances.

• Using a separate credit card and bank account helps to make things a lot easier to review when it comes time to do your taxes.
• Keeping home and practice accounts jumbled together can be one of the biggest reasons therapists struggle to do their taxes. The mishmash of finances is an overwhelming mess.

If you love doing your taxes, you are awesome. But if you don't that's ok too. It's overwhelming to have to do something you don't know how to do.

If this feels stressful and is in your financial means, consider hiring an accountant who can help you and set you up for success. Spending money to make sure it's done right will be money well spent (also a deduction).
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Once you have a basic understanding and start to implement a system that works for you to keep track of your finances, you will feel more in control, more empowered and less anxious come tax time.