CPA Services for Therapists and Mental Health Professionals in North Jersey

Therapists and counselors in private practice face unique financial challenges. Between managing insurance reimbursements, tracking CE expenses, and navigating NJ’s tax rules, the financial side of practice can be overwhelming.

Common Tax Deductions for Therapists

Office rent or home office (exclusive use required), continuing education and licensure fees, professional liability insurance, supervision costs, EHR and practice management software, and professional memberships.

Entity Structure

Many NJ therapists start as sole proprietors. As income grows, an LLC with S-Corp election can reduce self-employment tax significantly. The threshold is typically $80,000+ in net income.

Bookkeeping for Private Practice

Track insurance reimbursements separately from self-pay income. Maintain clear records of client sessions for revenue reconciliation. Track CE expenses throughout the year rather than scrambling at tax time.

NJ-Specific Considerations

NJ therapists must maintain professional licensure through the State Board of Marriage and Family Therapy Examiners or the Board of Psychological Examiners. Licensure renewal fees, CE courses, and supervision costs are all deductible business expenses.