CPA for Therapists in NYC | Private Practice Taxes

The first year in private practice is where the surprises happen

When you leave an agency job, nobody withholds tax from your session income anymore. Platforms like Headway and Alma pay you the full amount and send a 1099 in January. That income carries federal, New York State and, if you live in the city, New York City income tax, plus about 15.3% self-employment tax. Most new practice owners find out in April, along with an underpayment penalty for skipping the quarterly payments.

We work out what to set aside from each payment and give you a schedule for the four estimate deadlines: April 15, June 15, September 15 and January 15.

What we handle for therapists

Schedule C for your practice: session income from every platform and private-pay client matched to your 1099s, plus the deductions therapists often miss: licensing and CE, supervision, liability insurance, EHR and telehealth software, a home office used only for sessions, and office rent.
Quarterly estimates: federal, NY State and NYC amounts worked out from your real caseload, updated if your caseload changes.
NYC Unincorporated Business Tax: a solo practice in the city must file the UBT return once its gross income tops $95,000. A small-business credit often wipes out most or all of the tax, but the return still has to be filed.
Bookkeeping: monthly books that tie out to your platform payouts and bank account.

Sole proprietor, PLLC or S corporation?

Licensed professionals in New York cannot form an ordinary LLC; they form a PLLC (or a professional corporation). A PLLC by itself does not change your tax. Electing S corporation status can, once your profit is high enough that paying yourself a reasonable salary saves more in self-employment tax than the extra payroll, returns and NYC corporate tax cost. We run the numbers on your actual income before you decide.

Our posted prices

Personal return with your practice's Schedule C	starting at $600
Quarterly estimated tax plan (federal, NY State, NYC)	starting at $200 a year
NYC Unincorporated Business Tax return (if required)	starting at $200
Monthly bookkeeping	starting at $300/mo
PLLC formation + S corp election	$1,500 one time
S corp owner payroll	$275/mo

Returns and bookkeeping are "from" prices. You get an exact quote in writing before any work starts. Full price list

Common questions

I see clients through Headway. Do I need to pay quarterly estimated taxes?

Usually yes. Headway and similar platforms do not withhold tax, so if you expect to owe $1,000 or more in federal tax for the year, quarterly payments avoid an underpayment penalty. New York's threshold is $300. We work out the four amounts for you.

Should my therapy practice be an S corporation?

Not automatically. In New York you would first form a PLLC, then elect S status. It tends to pay off only once profit is well above a reasonable salary for your work, because payroll, a business return and NYC corporate tax add cost. We compare both ways using your numbers.

Do therapists in NYC owe the Unincorporated Business Tax?

A sole-proprietor practice doing business in New York City has to file the UBT return once its gross income is more than $95,000. The small-business credit reduces or eliminates the tax for many solo practices, but the filing is still required.

What does it cost?

A personal return with your practice's Schedule C starts at $600, quarterly estimates start at $200 a year, and a UBT return, if needed, starts at $200. You get a written quote first.

Accountant for Therapists in Private Practice