How to estimate your quarterly estimated tax payments as a therapist
Running your private practice is already a full-time job — the last thing you want is surprise tax bills or IRS penalties. That’s where quarterly estimated tax payments come in.
If you’ve ever wondered:
How much should I pay the IRS each quarter?
Do therapists really need to do this?
What happens if I get it wrong?
…then this post is for you. Let’s take the stress out of therapist taxes and break it down step by step.
Why Therapists Pay Quarterly Taxes
When you’re employed at a clinic or hospital, taxes are taken out of each paycheck automatically. But as a private practice owner, you’re considered self-employed. That means the IRS (and often your state) expects you to make tax payments four times a year:
April 15
June 15
September 15
January 15 (of the next year)
Skipping these deadlines or underpaying could mean late fees and penalties.
Step 1: Estimate Your Income
Look at your practice income for the year:
If you’ve been in business before, use last year’s numbers as a guide.
If you’re newer, estimate based on your caseload and average session fees.
Tip: Track your monthly income so your estimates stay accurate.
Step 2: Factor in Taxes
As a therapist in private practice, here’s what you need to cover:
Income tax (based on your total income and filing status)
Self-employment tax (15.3% for Social Security + Medicare)
A good rule of thumb: Save 25–30% of your net income (income after expenses).
Step 3: Divide Into Quarters
Take your estimated tax for the year and split it into four payments.
Example: If your estimated taxes total $12,000, you’ll pay about $3,000 each quarter.
Step 4: Adjust As You Go
Your income may shift throughout the year — more clients, a lighter caseload, or a fee increase. Check in each quarter and adjust your payment if needed.
Step 5: Make Your Payment
You can pay online (fast & easy!):
IRS Direct Pay
EFTPS (Electronic Federal Tax Payment System)
Don’t forget: most states also require quarterly estimated tax payments. Be sure to check your state’s website.
Take the Guesswork Out of Taxes
Quarterly taxes don’t have to be stressful. With the right plan, you’ll always know what to set aside and avoid those last-minute panics.
That’s exactly what I help therapists do at Open Books Accounting — bring calm to your money so you can focus on your clients, not the IRS.
👉 Schedule your free 20-minute discovery call and let’s make quarterly taxes simple. Wherever you are right now—I’ll meet you there.
