Deducting Therapy on Your Taxes
For many clients, therapy is a meaningful investment — and depending on your financial situation, some or all of that investment may be tax-deductible. Here’s what to know:
Therapy as a medical expense
The IRS allows taxpayers to deduct unreimbursed medical expenses, including mental health treatment, if they itemize deductions on their tax return. Therapy sessions, assessments, and related mental health care generally qualify as medical expenses under IRS guidelines.
The 7.5% threshold
You can only deduct the portion of your total medical expenses that exceeds 7.5% of your Adjusted Gross Income (AGI) for the year. For example, if your AGI is $60,000, the first $4,500 of medical expenses isn’t deductible — only costs beyond that amount count toward your deduction.
This means therapy deductions tend to make the most difference for people with lower incomes relative to their medical spending, or those with significant combined medical costs in a given year (therapy plus other treatment, procedures, medications, etc.).
Worked examples
Example 1: Standard weekly sessions
Say your AGI for the year is $60,000, and over the course of the year you paid:
• $3,900 in therapy fees (weekly sessions at $75/session)
• $600 in other unreimbursed medical expenses (dental work, prescriptions, etc.)
Your total medical expenses: $4,500
7.5% of your AGI ($60,000 × 0.075): $4,500
In this example, your expenses exactly meet the threshold, so there would be nothing left to deduct. If your therapy costs had instead been $5,900 (say, twice-weekly sessions), your total medical expenses would be $6,500, and you’d be able to deduct $2,000 — the amount exceeding the $4,500 threshold.
Example 2: Higher-fee weekly sessions
Say your AGI for the year is $65,000, and over the course of the year you paid:
• $10,400 in therapy fees (weekly sessions at $200/session, 52 weeks)
• $500 in other unreimbursed medical expenses (dental work, prescriptions, etc.)
Your total medical expenses: $10,900
7.5% of your AGI ($65,000 × 0.075): $4,875
Since your total expenses ($10,900) exceed the threshold ($4,875), you’d be able to deduct the difference: $6,025
Both examples are simplified for illustration. Your actual numbers, filing status, and eligible expenses will vary — and if you missed sessions, took breaks, or your fee changed partway through the year, your actual total may be different from a flat weekly estimate.
Itemizing vs. the standard deduction
This deduction only helps if you itemize your deductions rather than taking the standard deduction. Many taxpayers find the standard deduction is still larger overall, in which case itemizing medical expenses wouldn’t reduce your tax bill further. A tax professional can help you determine which approach benefits you.
If you self-file (TurboTax, H&R Block, FreeTaxUSA, etc.)
If you’re filing on your own using self-filing software, here’s generally where this deduction fits in:
• Look for a section labeled “Deductions & Credits,” “Medical Expenses,” or similar — most major platforms have a dedicated interview flow for this.
• The software will typically ask you to enter your total unreimbursed medical expenses for the year (therapy, assessments, other medical costs). It will usually calculate the 7.5% AGI threshold automatically and tell you whether itemizing makes sense compared to your standard deduction.
• You do not need to submit your Super Bills or receipts with your return, but keep them in your records in case of an audit — self-filing software will prompt you to keep documentation rather than upload it.
• Some platforms will ask if these were mental health specific — enter therapy costs as a mental health/medical expense category if given the option, though it typically doesn’t need to be broken out separately from other medical costs.
• If you’re unsure whether itemizing benefits you, most self-filing software will show you a real-time comparison between the standard deduction and itemizing as you enter information — let the software guide that decision rather than assuming either way.
If your tax situation involves more than straightforward W-2 income, or you’re combining several types of deductions, it may be worth a quick consultation with a tax professional even if you plan to file the rest on your own.
What you’ll need
To claim this deduction, keep records of what you’ve paid for therapy throughout the year. Our Super Bills — receipts of service we provide upon request — include the information typically needed to document these expenses, whether you’re using them for insurance reimbursement, HRA reimbursement, or your taxes.
A note on FSA/HSA funds
If you’ve paid for sessions using FSA or HSA funds, those amounts have already received tax-advantaged treatment and generally cannot also be claimed as an itemized deduction. Keep this in mind when calculating your total eligible expenses for the year.
This isn’t tax advice
Every financial situation is different, and tax law changes over time. We strongly encourage you to talk with a licensed tax professional or accountant about your specific circumstances before filing. This page is meant to introduce the general concept — not to replace personalized guidance.