Tax Deduction Question

[number9]

I'm told if you are an individual you can deduct your individual insurance plan premiums in 2014. If you are an individual who receives a subsidy, you can not deduct the premiums you pay off your tax return. I can not find any data that substantiates that?

 

[Yagents]

Both are wrong. That's a republican idea that isn't considered an alternative to O'care.
1. Only self employed can tax deduct premium, and that deduction has not been extended for 14'............yet. Look for it in the budget deal this week........that may or may not happen.
2. getting tax credits has nothing to do with your ability to deduct the remaining un-subsidized portion. See #1 above.

 

[mkd1204]

Both are wrong. That's a republican idea that isn't considered an alternative to O'care.
1. Only self employed can tax deduct premium, and that deduction has not been extended for 14'............yet. Look for it in the budget deal this week........that may or may not happen.
2. getting tax credits has nothing to do with your ability to deduct the remaining un-subsidized portion. See #1 above.

Ok bringing this old one back to life..

I have several husband/wife businesses that used to be eligible for group coverage but are not anymore because of the changes in the law. Anyway, If their income is at a level that would get them a credit on the exchange, can they deduct the rest of the premium as a business expense?

Also, what if they don't get a credit? Can they deduct that? I know people can deduct expenses over a certain percentage of income but how about just a normal business deduction?

Not looking for legal tax advice. Just general info or links if you know of any??
Thanks!

 

[Yagents]

Ok bringing this old one back to life..

I have several husband/wife businesses that used to be eligible for group coverage but are not anymore because of the changes in the law. Anyway, If their income is at a level that would get them a credit on the exchange, can they deduct the rest of the premium as a business expense?

Also, what if they don't get a credit? Can they deduct that? I know people can deduct expenses over a certain percentage of income but how about just a normal business deduction?

Not looking for legal tax advice. Just general info or links if you know of any??
Thanks!

The un-subsidized portion can be deducted on line 29 of your 1040 tax form.
You cannot double dip and tax deduct the tax credit portion of your premium.

Who qualifies as self employed is the question.
(read IRS instruction booklet for line 29)

I do know that Sole owners of an S-corp, can pay premiums out of the business, and then include it in their W-2 in addition to the salary (but they are not taxed for medicare/social security portions). While It is taken as W-2 federal taxable income, it is then deducted on personal taxes (line 29), to wash out the federal tax consequence.

Out of pocket expenses is a different story. (deductibles, copays, etc), is best handled by buying a HDHP eligible HSA plan, and fund it to get the deduction on line 25 of 1040 on personal taxes. If no HSA, then it is subject to 10% income threshold, which is a non starter for most.

S-Corp + HSA is best way to deduct the most
This is not legal tax advice, do with it as you wish.

 

[mkd1204]

The un-subsidized portion can be deducted on line 29 of your 1040 tax form.
You cannot double dip and tax deduct the tax credit portion of your premium.

Who qualifies as self employed is the question.
(read IRS instruction booklet for line 29)

I do know that Sole owners of an S-corp, can pay premiums out of the business, and then include it in their W-2 in addition to the salary (but they are not taxed for medicare/social security portions). While It is taken as W-2 federal taxable income, it is then deducted on personal taxes (line 29), to wash out the federal tax consequence.

Out of pocket expenses is a different story. (deductibles, copays, etc), is best handled by buying a HDHP eligible HSA plan, and fund it to get the deduction on line 25 of 1040 on personal taxes. If no HSA, then it is subject to 10% income threshold, which is a non starter for most.

S-Corp + HSA is best way to deduct the most
This is not legal tax advice, do with it as you wish.

Thank you so much! Exactly what I needed. I'll read some more in the instruction booklet.