Tax considerations in occupational therapy: Employment and business structures

Occupational therapy practitioners (OTPs) routinely incur professional expenses for licensure, continuing education, and clinical resources. The structure through which they practice—whether as W-2 employees, independent contractors, or business owners—determines how these costs are managed, as well as their level of autonomy and administrative responsibility. W-2 employees benefit from stable income and reduced administrative responsibilities but may have limited ability to deduct expenses. In contrast, self-employed practitioners gain flexibility but assume increased responsibility for financial management and tax compliance.