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Are session write offs tax deductible

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5 comments

  • Gillian

    Hi, Matthew! This is a great question - and one that might be best answered by an accountant. I'm not an accountant, but I can tell you that in most cases, session write-offs are not tax deductible. For tax purposes, you pay tax on income received. If in your book-keeping you report your full fee, you can "write off" the unpaid amount, therefore deducting it from the full fee for tax purposes and paying tax only on the final amount received. Otherwise, you'll just report the final fee received, and pay taxes on that. 

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  • Katherine Heeg

    According to my accountant, you can't declare income you never received, so no.  There's also a tax lawyer and accountant in the group.  But check with your own tax and legal advisors.

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  • Joel Davison

    I was told that because you agreed to the amount of payment between you and the insurance company, you cannot write this off.  

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  • Wendy Holder

    What about writing off fees that are never collected from self pay clients or that never paid their copay?  

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  • Teresea Higham

    YES WENDY, I HAVE THAT QUESTION TOO. HOW DO WE DEFRENTIATE BETWEEN THE TWO WRITE OFFS?

     

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