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12 pages

Money

What the practice pays you, and what you can keep.

California
Last checked6 August 2026All updates →
Figures checked, narrative not re-read

The numbers are current. The argument around them has not been reviewed since it was written.

Four decisions sit under everything here. What to charge and how full a week to run. Whether to stay a sole proprietor or put the practice inside a California professional corporation. How much of the profit to defer into a retirement account instead of sending it to the IRS. And how to get the quarterly installments right so June does not arrive short. The tools on this page take your own rate, caseload and running costs and carry them all the way to a net figure, on 2026 federal and California rates, with every step traceable to the rule it came from.

What the site can settle: the arithmetic. A $217,350 profit carries about $18,244 of tax that is optional rather than owed. A corporation costs $800 a year before you see a client, and California's 1.3% SDI has no wage cap, so the S-corp saving is smaller than the usual pitch. California's estimated installments run 30, 40, 0 and 30, not four equal quarters. What it cannot settle: whether your specific salary figure is reasonable compensation, whether your old SEP balance should be rolled before a Roth conversion, or anything that depends on facts only your accountant has.

12 pages, in 3 sections: What the practice pays you · Sole proprietor, or a corporation · Tax you can defer, and tax you must send. Every figure below is computed or cited, and links to the page that carries it.

Key insights

$24,500 more, deferred

Solo 401(k), SEP or SIMPLE, worked at three real profit levels

$24,500more, deferred
What you should know about this figure

This figure comes from Which retirement plan should I actually open?, on 2026 federal and California rates, for a California resident, with no other household income. Your own number will differ — the page shows the working and, where there is a calculator, runs it on your figures.

$18,244 optional on a $217,350 profit

Your own profit priced against every deferral account, and the entity choice

$18,244optional on a $217,350 profit
What you should know about this figure

This figure comes from How much of my tax bill is optional?, on 2026 federal and California rates, for a California resident, with no other household income. Your own number will differ — the page shows the working and, where there is a calculator, runs it on your figures.

$5 a square foot, or more

Both methods worked, plus the commuting rule it unlocks

$5a square foot, or more
What you should know about this figure

This figure comes from Can I deduct the room I do telehealth from?, on 2026 federal and California rates, for a California resident, with no other household income. Your own number will differ — the page shows the working and, where there is a calculator, runs it on your figures.

Money tools

Sole proprietor, or a corporation

Tax you can defer, and tax you must send

The other four areas

Everything on the site → · Every question →

Cite this pageTherapist Support, “Money”, checked 8 August 2026, therapistsupport.org/money/

Free to reuse with attribution. If you are a program or a professional association linking to a figure, link to the page that carries it rather than copying the number — it will change.