How Chiropractors Can Save Thousands in Taxes: 4 Proven Strategies for Practice Owners

Running a chiropractic practice demands your full attention—from delivering excellent patient care to managing your team and staying compliant with regulations. But there’s one area that quietly impacts your profitability more than most realize:

Overpaying in taxes—not because you’re doing anything wrong, but because no one has shown you the strategies designed for practice owners like you.

If you’re a chiropractor running your own business, there are tax moves available to you that can significantly reduce your burden, support long-term growth, and increase what you actually keep.

Here are four proven tax strategies tailored to chiropractic and health practice owners—each one simple to understand, powerful in effect, and often underutilized.

1. Leverage a SEP IRA to Reduce Taxable Income and Build Retirement Savings

A Simplified Employee Pension (SEP) IRA is one of the most tax-efficient retirement tools available to sole proprietors and small practice owners.

Here’s how it works:

  • Contribute up to 25% of your net income (subject to annual limits)
  • Contributions are tax-deductible, reducing your taxable business income
  • You retain full flexibility—contribute more in good years, less in lean ones
  • No annual filing requirement like other retirement plans

This allows you to reduce your tax liability while saving for your own future on your own terms.

Bonus: You can wait until your extended tax filing deadline (September 15) to make contributions—giving you time to evaluate your year before committing.

2. Hire Family Members—Legitimately and Strategically

If your spouse or teenage child helps in your office—answering phones, managing supplies, handling social media—consider making it official.

When handled properly:

  • Their wages become a business deduction
  • You may shift income to a lower tax bracket
  • Children earning income can qualify to contribute to Roth IRAs, or support education savings

To use this strategy, pay reasonable wages, track time, and document the work performed. When done right, it’s a win for both your tax return and your family’s financial future.

3. Evaluate Whether an S-Corp Structure Is Right for Your Practice

Many chiropractors begin as sole proprietors or LLCs. But once your income reaches a certain level, shifting to an S Corporation could result in real tax savings.

With an S Corp:

  • You pay yourself a reasonable salary
  • Additional profits can be taken as distributions, which aren’t subject to self-employment tax
  • You may save thousands annually depending on your profit margins

This move requires a strategic evaluation of your income, payroll setup, and compliance requirements—but for many practice owners, it’s a tax-smart next step.

4. Track and Reimburse Business Expenses Properly

Out-of-pocket expenses—whether for continuing education, mileage, software subscriptions, or clinic supplies—are often overlooked when they should be reimbursed by the business.

Why this matters:

  • Proper reimbursement = deduction for the business
  • Failure to track these = missed tax savings
  • Poor documentation = audit exposure

Implement a clear internal reimbursement policy, keep records, and review expenses monthly. Even in a solo practice, this can result in meaningful year-end savings.

Final Thoughts

Tax planning doesn’t need to be complicated—it needs to be strategic, timely, and aligned with the reality of running a healthcare practice.

These four strategies:

  • Require minimal disruption to your operations
  • Are fully compliant with IRS guidelines
  • Can significantly improve both your current tax outlook and your long-term financial picture

If you’re unsure whether you’re using the right structure, maximizing deductions, or preparing for the future in the smartest way—now is the time to revisit your plan.