New Midwifery Practice Buyer's Guide: What to Look For
A practical guide for new midwifery practices on choosing tax software, with comparisons, costs, and steps to take this week.
Starting a midwifery practice brings clinical focus, but you also need to handle taxes. The right tax software saves time, reduces errors, and keeps you compliant. This guide compares top options for new midwifery practices, with realistic 2026 pricing and features that matter for your business.
What to Look for in Tax Software for a Midwifery Practice
As a midwifery practice, you have unique needs: managing 1099 contractors (like backup midwives), tracking supplies, handling health savings account (HSA) payments, and possibly filing as an S-corp or LLC. Look for software that:
- Supports your business structure (sole proprietorship, LLC, S-corp)
- Handles contractor 1099s and employee payroll (if you hire staff)
- Tracks mileage for home visits and hospital rounds
- Integrates with your accounting software (QuickBooks, Xero)
- Offers audit support and error checking
- Provides year-round tax planning tools, not just filing
Comparison of Tax Software Options for 2026
Here is a side-by-side comparison of popular tax software for new midwifery practices. Prices are monthly or per-filing, based on 2026 rates.
| Software | Best For | Starting Price (2026) | Key Features | Limitations |
|---|---|---|---|---|
| TurboTax Self-Employed | Sole proprietors | $89 per federal filing | Deduction finder, mileage tracking, audit support | No payroll, limited for S-corps |
| H&R Block Premium | Simple returns | $85 per federal filing | Free expert review, deduction maximizer | No payroll, no year-round planning |
| QuickBooks Self-Employed + TurboTax | Freelancers with bookkeeping | $30-$40/month (with tax filing add-on) | Mileage tracking, invoicing, tax estimates | Tax filing is separate, costs extra |
| TaxAct Self-Employed | Budget-friendly | $55 per federal filing | Deduction guidance, e-file | Less intuitive, no payroll |
| Drake Tax | Professional tax preparers | $1,500-$2,500/year | Full-featured, multi-state, payroll add-on | Overkill for most new practices |
| TaxSlayer Pro | Small practices with clients | $300-$500/year | Affordable, supports 1099s | Steep learning curve |
For most new midwifery practices, TurboTax Self-Employed or H&R Block are sufficient if you have a simple return. If you want year-round bookkeeping, QuickBooks Self-Employed is a strong choice. For S-corps or practices with employees, consider professional software or a CPA.
Practical Steps to Take This Week
- Estimate your business structure: Decide if you are a sole proprietor, LLC, or S-corp. This determines which software you need. If you are unsure, consult a CPA or use a service like LegalZoom (starting at $99 plus state fees).
- Gather your financial records: Collect income statements, expense receipts, mileage logs, and contractor payments. You will need these to set up the software.
- Choose a software and set up an account: Based on the table, pick one that fits your budget and needs. Sign up and enter your basic business info.
- Set up quarterly estimated tax payments: Most midwives are self-employed and must pay estimated taxes. Use the software’s calculator to determine your quarterly payments (due April 15, June 15, Sept 15, Jan 15).
- Track mileage from day one: Use the app’s mileage tracker for all home visits and hospital trips. This can save you hundreds in deductions.
- Schedule a check-in with a CPA: Even if you use software, a CPA can review your setup and ensure you are not missing deductions. Many offer a one-time consultation for $150-$300.
Key Tax Deductions for Midwifery Practices
- Supplies and equipment: Gloves, birth kits, dopplers, and other medical supplies are deductible.
- Professional liability insurance: Premiums are fully deductible.
- Continuing education: Courses, conferences, and certifications are deductible.
- Home office: If you have a dedicated space for admin work, you can deduct a portion of rent, utilities, and internet.
- Mileage: Track miles for home visits, hospital rounds, and supply runs. The 2026 IRS rate is likely around $0.67 per mile (check IRS.gov).
- Marketing and website: Costs for your website, business cards, and online ads are deductible.
- Health insurance premiums: If you are self-employed, you may deduct premiums for yourself and your family.
FAQ
Q: Can I use free tax software for my midwifery practice? A: Free versions (like TurboTax Free or Cash App Taxes) are for simple returns, but they often miss business deductions. For a practice, invest in a paid version or use a professional. The cost is worth the savings.
Q: What if I hire employees or contractors? A: If you hire contractors (like backup midwives), you need to issue 1099-NEC forms. Most paid tax software includes this. If you have employees, you need payroll services like Gusto or ADP, which integrate with tax software.
Q: How do I handle quarterly estimated taxes? A: Use the software’s estimated tax calculator. It will tell you how much to pay each quarter. Set reminders for April 15, June 15, Sept 15, and Jan 15. Missing these can result in penalties.
Q: Should I hire a CPA instead of using software? A: For the first year, a CPA can be invaluable. They can help you set up your books, identify deductions, and plan for taxes. Many new practices use software for day-to-day tracking and a CPA for annual filing. Expect to pay $300-$800 for a simple return.
The Bottom Line
Choosing tax software for your new midwifery practice is a decision that affects your cash flow and compliance. Start with a reliable option like TurboTax Self-Employed or QuickBooks Self-Employed, and upgrade if your practice grows. Take action this week: estimate your structure, gather records, and set up a system. A little effort now saves you stress and money at tax time. If you are unsure, spend a few hundred dollars on a CPA consultation. It is an investment that pays off.