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:
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April 15
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June 15
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September 15
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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:
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If you’ve been in business before, use last year’s numbers as a guide.
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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:
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Income tax (based on your total income and filing status)
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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!):
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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.
🖤
Lorin
Founder, Open Books Accounting for Therapists
