- 7,790
Kyle and John P, the health insurance does not have to be in the business name, but the premiums do have to be paid by the self-employed person in order to legally take the deduction.
Uh, no . . .
The comment on giving tax advice was directed at Kyle, not you.
Offering clients tax advice, or legal advice, or medical advice, no matter how knowledgeable one is, can land you in a heap of trouble.
Now how about getting rid of that bug up your ass?
- 7,790
Well, somarco. you should have addressed it to Kyle. Anyway, I am going to make an appointment in the morning with my gastroenterologist (they used to be called proctologist) to see if she can do anything about that bug that is up my ass.
P.S. An excellent website on this topic is: www.wwwebtax.com/adjustments/self_emp_health.htm
THERE ENDETH THE READING!
P.S. An excellent website on this topic is: www.wwwebtax.com/adjustments/self_emp_health.htm
THERE ENDETH THE READING!
- Thread starter
- #24
G
Guest
Guest
I knew he was addressing me...thus post #11
Nevertheless, I got exactly what I was looking for...I am going to print this thread and give it to all my clients who ask me about deducting health insurance premiums...that should clear things up nicely
- 7,790
Somarco, I was able to get an emergency appointment with my gastroeneterologist this morning. She found that, indeed, there was a bug up my ass. It must have been surreptitiously implanted there years ago by former employer, the IRS. They must have done it while I was knocked out during a colonoscopy----the devils. Anyway, everything is O.K. now and I am prepared to answer more tax queries.
- 314
Arnguy - I think an IRS agent ranks lower on the list of who people want to speak with than an Insurance Agent! Heck, it's scary to communicate with you knowing that you were one of "them" (lol). I think they should allow IRS agents to be interrogators at Gitmo.
I assume that your sense of humor helped you through that time in your life - good one about the bug.
I assume that your sense of humor helped you through that time in your life - good one about the bug.
- 596
In general, it depends on who the coverage is for, employer or employee, here is a general guide:
Employer: Not tax deductible to the business, but deductible on the individual 1040 tax return as an above the line deduction. He would still pay FICA (15%) on the premiums (not on a group plan).
Employee: Depends if enrolled in a Sect. 125 plan. If no, can take an itemized deduction for total medical expenses above 7.5% of adjusted gross income (not likely to apply often). However, it's easy to set up a Sect. 125 plan, the employees can pre-tax their premium and not pay FICA taxes on it. The owners can't participate on the 125 plan unless the business is a C-Corp.
Employer: Not tax deductible to the business, but deductible on the individual 1040 tax return as an above the line deduction. He would still pay FICA (15%) on the premiums (not on a group plan).
Employee: Depends if enrolled in a Sect. 125 plan. If no, can take an itemized deduction for total medical expenses above 7.5% of adjusted gross income (not likely to apply often). However, it's easy to set up a Sect. 125 plan, the employees can pre-tax their premium and not pay FICA taxes on it. The owners can't participate on the 125 plan unless the business is a C-Corp.
- 7,790
BKroko, it was a lonely existence. Most of the social interplay was with other IRS agents. Other people would shun me when they knew what my job was. Mention my occupation at a cocktail party and it would literally clear the decks. Strike a conversation with someone seated next to you on a trai or plane, they would change seats if possible. I used to string out the answer to "What do you do?" like this:
ME: I work for the government
Oh, city state, federal?
ME:Federal.
What branch?
ME:Treasury.
Which bureau or department?
ME:IRS.
That ended the conversation.
ME: I work for the government
Oh, city state, federal?
ME:Federal.
What branch?
ME:Treasury.
Which bureau or department?
ME:IRS.
That ended the conversation.
- 14,808
You must love the nutbags who claim they don't owe taxes since the law was never ratified:
http://www.thelawthatneverwas.com/new/home.asp
http://www.thelawthatneverwas.com/new/home.asp
- 7,790
Yeah, John, there are a lot of them around. This guy might have been a cellmate of Irwin Schiff who has published a book to justify his theory of why the income tax is illegal. Some dude actually published an article stating that Schiff was "railroaded" by the IRS.
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