08/31/2026
Your business card is not a magic tax wand.
Opening an LLC? Great.
Opening a separate business bank account? Also great. Please do that.
But buying something with your business debit or credit card does not automatically turn it into a tax deduction.
I wish it worked that way. My Target receipts would have some explaining to do.
For a business expense to generally be deductible, it needs to meet the tax rules — including being ordinary and necessary for your business.
For a therapist, that might include things like:
• your EHR or practice management software
• professional liability insurance
• continuing education
• licensing fees
• office supplies
• certain marketing expenses
• professional services like bookkeeping and tax preparation
Then we have expenses where the answer gets more annoying: it depends.
Meals. Vehicles. Travel. Home offices. Cell phones. Expenses that have both a personal and business component.
Those are the ones where the details matter, documentation matters, and sometimes only a portion is deductible.
And no, labeling a transaction “BUSINESS EXPENSE” in QuickBooks does not intimidate the IRS into agreeing with you.
This is also where having an actual human looking at your books can make a difference.
Software and AI are great tools — I use technology in my own work. But tax strategy requires context. I want to know what you bought, why you bought it, how you use it in your practice, and what the tax law actually allows.
Because the goal isn’t to be afraid of deductions.
The goal is to take every legitimate deduction you’re entitled to and have the records to support it.
That’s a much better strategy than “I put it on the business card.”
Save this one before your next bookkeeping day.
And if your current method of determining deductions is mostly vibes and a business debit card, we should probably talk.
