Is Therapy / Mental Health Tax Deductible for Your Business?

No, therapy / mental health is generally not tax deductible as a business expense. The IRS considers this a personal expense, even if it has some connection to your work activities. However, there may be limited exceptions in specific circumstances.

Key Rules for Deducting Therapy / Mental Health

Therapy is a MEDICAL expense deductible on Schedule A (Itemized Deductions) subject to the 7.5% AGI floor. It is NOT a Schedule C business deduction, even for 'work-related stress.'

Requirements to Claim This Deduction

• NOT a business deduction
• May be deductible as medical expense on Schedule A
• Subject to 7.5% AGI floor

How to Document Therapy / Mental Health for Tax Purposes

Proper documentation is critical for any business deduction. For therapy / mental health, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 502. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.