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Summary of January Accounting Workshop

Business Types

  1. Sole Proprietorship

  2. Partnership

  3. “S” Corporation

  4. Corporation

Qualified Income Business Income Deduction (QBID)

The Qualified Business Income Deduction (QBID) is a significant tax benefit for therapists who are self-employed or own their own practice. This deduction allows eligible therapists to reduce their taxable income by up to 20% of their qualified business income (QBI).

Eligibility for therapists

Therapists can generally claim the QBID if they operate as a pass-through entity, such as:

While therapy practices are technically considered Specified Service Trades or Businesses (SSTBs), which are usually excluded from the QBID, there are important exceptions that benefit most therapists:

Income Thresholds and Limitations

For the 2025 tax year:

  • Full deduction: Therapists with taxable income below $197,300 (single) or $394,600 (married filing jointly) can claim the full 20% deduction.

  • Partial deduction: Those with income between $197,300 and $247,300 (single) or $394,600 and $494,600 (married filing jointly) may claim a partial deduction.

Pass-Thru Entity Tax

  1. Implemented to replace SALT (State and Local Tax Deductions) limitations

  2. Business must be a pass-thru entity

  3. Tax deduction calculated at 6.85% of business taxable income

  4. Savings calculated by reducing federal taxable income

Beneficial Ownership Reporting (BOI)

  1. Still a political football with injunction after injunction

  2. If passed into law, (most experts think extremely likely) penalties set at $592 per day of non-compliance

Tax Deductions & Planning

  1. Be aware of all deductions that are used in our field: conferences, meals, home office and retirement funding

  2. Tax planning by a qualified professional can help make history, not just record in subsequent year.  Very minimum, eliminates large tax bill surprises

Bookkeeping/Why Use Quickbooks Online for Your Practice?

Tim’s Quickbooks Online - "QBO" Highlights

-QBO is an all in one online bookkeeping software developed by a company called Intuit, and they have created a great accounting and bookkeeping solution for many business owners.

-The best feature of QBO is the ability of not only you as the business owner, but your accountant and CPA having real-time access to your bookkeeping.

-QBO allows you to link their software to your business bank and credit card accounts.

-QBO uses artificial intelligence to attempt to correctly categorize your transactions into the appropriate accounts.

-You can create certain "rules" for how various transactions are posted and QBO even has the ability to "auto-post" recurring transactions without any user input whatsoever.

-QBO can also run your payroll for you should you choose to hire your own employees in your business.

-QBO will handle filing your W-2s + 1099s and issuing employee's their own copies by regular mail and also by e-mail.

-Let QBO handle everything for you once you have submitted your payroll and be ensured that everything will be handled correctly with a dedicated support team on your side.

-QBO also has the ability to generate financial reports for you in real-time to review yourself and with your accountant.

-The endless customization of reporting is great for every business owner, and you can fine-tune your financial reports to however you see fit for how you have structured your business.