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Level 1
posted Apr 24, 2024 9:08:35 AM

Tax Write-Off

I am a 1099 contracted mental health therapist. I pay a company 35% of all my therapy session fees. In exchange they provide office space, support staff, billing specialists and more. Am I able to write this 35% off on my taxes?

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1 Best answer
Expert Alumni
Apr 24, 2024 9:28:17 AM

Yes, since your income is reported on a 1099, you are considered a self-employed individual.  You will use Schedule C Business Income and Expenses as part of your tax return.

 

You would claim all of the income that you received, and then claim a business expense for the 35% that you pay the company for their services.  That way, your taxable income will be the remaining portion of the amount reported on the 1099.  You can also take other business expenses into account when you file your Schedule C.

 

See the following TurboTax help article to learn more:

 

What Is a Schedule C IRS form?
 

1 Replies
Expert Alumni
Apr 24, 2024 9:28:17 AM

Yes, since your income is reported on a 1099, you are considered a self-employed individual.  You will use Schedule C Business Income and Expenses as part of your tax return.

 

You would claim all of the income that you received, and then claim a business expense for the 35% that you pay the company for their services.  That way, your taxable income will be the remaining portion of the amount reported on the 1099.  You can also take other business expenses into account when you file your Schedule C.

 

See the following TurboTax help article to learn more:

 

What Is a Schedule C IRS form?