Tax Deductions for Chiropractors in California

Practice Expenses

California chiropractors running their own practice can deduct all ordinary and necessary business expenses: office rent, staff salaries and benefits, medical supplies, billing software, EHR systems, continuing education, and professional association dues (California Chiropractic Association, ACA). Front desk staff, billing staff, and chiropractic assistants' wages are fully deductible. Payroll taxes on employee wages are also deductible.

Marketing expenses — website, Google Ads, social media advertising, patient newsletters, and referral programs — are fully deductible. Patient education materials and waiting room amenities used for business purposes are deductible. Business telephone and internet service are deductible.

Equipment & Depreciation

Chiropractic equipment — adjustment tables, X-ray equipment, ultrasound machines, electrical stimulation units, traction equipment — is depreciable business property. Under Section 179, you can expense up to $1,220,000 of qualifying equipment in the year purchased. Federal bonus depreciation (100%, restored permanently by the OBBBA) allows immediate expensing of most equipment. Note: California does not conform to federal bonus depreciation — California equipment deductions must use Section 179 or regular MACRS depreciation.

Malpractice & Business Insurance

Professional liability (malpractice) insurance is fully deductible. California chiropractors typically carry $1 million/$3 million malpractice coverage — premiums of $2,000–$8,000 per year are fully deductible. General liability, property insurance, workers' compensation, and business interruption insurance premiums are also fully deductible.

Retirement Plans

A chiropractic practice with employees can establish a 401(k) plan — employee contributions reduce their taxable income, and employer matching contributions are deductible business expenses. A solo chiropractor can contribute up to $70,000 per year to a Solo 401(k) or SEP-IRA. A defined benefit plan can allow contributions of $150,000–$300,000+ per year for chiropractors over 50 with high income. KDA designs retirement plans for chiropractic practices that maximize deductible contributions.

California-Specific Rules

California does not conform to the federal QBI deduction — chiropractors operating as pass-through entities do not get the 20% federal QBI deduction on their California return. Healthcare professionals are specifically excluded from the QBI deduction at higher income levels federally as well. California's PTET election is available to chiropractic S corps and partnerships and can save significant federal taxes.