Tax Write-Offs for New Midwifery Practices: The Complete List

2026-08-21

A practical guide to deductible expenses for new midwifery practices, including startup costs, equipment, home office, and more, with realistic 2026 figures.

Starting a midwifery practice comes with significant upfront costs, but many of those expenses can reduce your tax bill. This guide covers the complete list of tax write-offs available to new midwifery practices, with realistic 2026 figures and actionable steps you can take this week.

Startup Costs (Up to $5,000 Deduction)

The IRS allows you to deduct up to $5,000 in startup costs in your first year of business, with the remaining costs amortized over 180 months. Eligible startup costs include:

Market research and feasibility studies
Advertising and marketing before opening
Training for staff (but not your own training)
Legal and accounting fees for setup
Licenses and permits (e.g., state midwifery license, business license)

Practical step: Track every pre-opening expense in a separate spreadsheet or accounting category. If your startup costs exceed $50,000, the $5,000 deduction phases out dollar-for-dollar, so plan accordingly.

Equipment and Supplies

You can deduct the full cost of equipment and supplies used in your practice, either through Section 179 or bonus depreciation. For 2026, Section 179 allows up to $1,160,000 in equipment purchases, and bonus depreciation is 80% for new assets.

Common write-offs include:

Fetal monitors ($500-$2,000)
Doppler devices ($100-$300)
Examination tables ($1,000-$3,000)
Birthing tubs or pools ($200-$500)
Medical supplies (gloves, gauze, sterilizers)
Office furniture (desks, chairs, shelves)

Practical step: Use Section 179 to deduct the full cost of equipment in the year you place it in service, rather than depreciating over time. Keep receipts and note the date each item was first used.

Home Office Deduction

If you see clients at home or use a dedicated space for administrative work, you may qualify for the home office deduction. The space must be used regularly and exclusively for business.

Two methods are available:

Simplified method: Deduct $5 per square foot, up to 300 square feet, for a maximum of $1,500.
Regular method: Deduct actual expenses (mortgage interest, rent, utilities, insurance) based on the percentage of your home used for business. For example, if your office is 200 square feet in a 2,000-square-foot home, you can deduct 10% of those costs.

Practical step: Measure your home office space and calculate both methods. The regular method often yields a larger deduction if your home expenses are high, but the simplified method is easier to document.

Professional Fees and Insurance

Your practice requires professional services and insurance, all deductible:

Malpractice insurance ($3,000-$8,000/year for midwives)
General liability insurance ($500-$1,500/year)
Accounting and bookkeeping fees ($150-$400/month)
Legal fees for contracts or entity formation
Continuing education courses and conferences ($200-$1,000/year)
Professional association dues (e.g., American College of Nurse-Midwives, $300-$500/year)

Practical step: Review your insurance policies and professional memberships. Ensure all are in the name of your practice or yourself as a business owner, and pay them from your business account.

Marketing and Advertising

Marketing costs are fully deductible, including:

Website design and hosting ($500-$2,000 initial, $20-$50/month)
Social media advertising (Facebook, Instagram)
Print materials (brochures, business cards)
Client referral programs
Local event sponsorships

Practical step: Set up a separate marketing budget and track all expenses. If you use a digital marketing service, keep invoices showing the business purpose.

Vehicle and Travel Expenses

If you travel to clients’ homes, hospitals, or birth centers, you can deduct vehicle expenses using either the standard mileage rate (67 cents per mile in 2026) or actual expenses (gas, maintenance, insurance, depreciation).

Also deductible:

Parking and tolls
Airfare and hotels for conferences (if primarily for business)
Meals during business travel (50% deductible)

Practical step: Keep a mileage log in your car or use a mileage-tracking app. Record every trip’s date, purpose, and miles. The standard mileage rate is often simpler and more beneficial.

Employee and Contractor Costs

If you hire staff, their wages are deductible, as are:

Payroll taxes (employer portion)
Workers’ compensation insurance
Employee benefits (health insurance, retirement contributions)
Independent contractor payments (e.g., doulas, lactation consultants)

Practical step: Classify workers correctly as employees or contractors to avoid penalties. Issue Form 1099-NEC to contractors who earn $600 or more.

Software and Technology

Software subscriptions and technology are deductible, including:

Electronic health records (EHR) systems ($50-$300/month)
Practice management software ($50-$200/month)
Scheduling apps (e.g., Calendly, $10-$20/month)
Accounting software (e.g., QuickBooks, $30-$100/month)
Telehealth platforms ($30-$100/month)
Cloud storage and email (e.g., Google Workspace, $6-$18/user/month)

Practical step: List all your software subscriptions and their annual costs. Cancel any that are not essential, and ensure you are using the business tier for tax purposes.

Education and Training

Your own education is generally not deductible, but training for employees is. However, you can deduct:

Continuing education required to maintain your license
Conferences and workshops (registration, travel, lodging)
Professional books and journals
Online courses that improve your business skills (e.g., billing, marketing)

Practical step: Keep a folder for each conference or course, including receipts and a note on how it relates to your practice.

Utilities and Phone

If you have a dedicated office space, you can deduct a portion of utilities. For a home office, use the percentage from the home office calculation. Your business phone line is fully deductible, but if you use your personal phone, deduct a reasonable percentage based on business use.

Practical step: Track your phone usage for one week to estimate the business percentage. Apply that percentage to your monthly bill.

FAQ

Can I deduct expenses before my practice officially opens? Yes, startup costs incurred before opening are deductible, up to $5,000 in the first year, with the rest amortized.

What if I use my car for both personal and business use? You can only deduct the business portion. Keep a detailed mileage log to support your deduction.

Are birthing supplies like tubs and kits deductible? Yes, they are medical supplies used in your practice, fully deductible as ordinary business expenses.

Do I need to file quarterly estimated taxes? If you expect to owe more than $1,000 in taxes, yes. Consult your accountant to calculate estimated payments and avoid penalties.

The Bottom Line

Tax write-offs can significantly reduce your startup burden, but they require accurate records. Start by tracking every expense from day one, use accounting software, and consult a CPA who works with healthcare practices. The money you save on taxes can be reinvested in your practice, so take full advantage of every deduction you qualify for.

This week, set up a dedicated business bank account, create expense categories in your accounting software, and begin logging all business-related purchases. Your future self will thank you at tax time.