- 30,573
So, it wouldn't help to lower your salary?
TN Major Medical good insurance?
- Thread starter vic120
- Start date
- Thread starter
- #22
if I lower my salary then the buis profits more isn't like taking the same pie and just cutting the slices different sizes but the pie itself is the same
Unless I am missing something unless my accountant sucks (which may or may not be I probably wouldn't know the difference)
No, I don't think your CPA sucks.
The question is this: when Medicaid is determine income, are they doing it off your personal 1040? Or the combination of the personal 1040 AND the corporation 1040?
If its both, you are screwed.
If its personal, then start paying both of you 25K a year (or whatever) and get under the line so you can get the coverage.
And NO, I do not think this is unethical. What's unethical is that there are no options in Tennessee that offer the ABA therapy for group or individual. The DOI needs to fix that. That's ridiculous. Your child needs the therapy. There is no other way to get it, unless you pay $24K a year out of pocket. That's just wrong. Sad and wrong.
The question is this: when Medicaid is determine income, are they doing it off your personal 1040? Or the combination of the personal 1040 AND the corporation 1040?
If its both, you are screwed.
If its personal, then start paying both of you 25K a year (or whatever) and get under the line so you can get the coverage.
And NO, I do not think this is unethical. What's unethical is that there are no options in Tennessee that offer the ABA therapy for group or individual. The DOI needs to fix that. That's ridiculous. Your child needs the therapy. There is no other way to get it, unless you pay $24K a year out of pocket. That's just wrong. Sad and wrong.
- 7,110
Vic,
Have never understood much about scorp's. Just did a little reading online trying to understand your situation better and I see two things you could put on a list to talk with your accountant about before making any changes.
One: Compensation seems to need to be reasonable compensation. If you have been paying yourself an approximately similar amount each year, and then suddenly want to reduce your compensation after a year of increased earnings, IRS might fuss with you over reasonable compensation issues.
Two: I see reference to something called a pass through deduction which is new for 2018. When you are trying to anticipate 2018 financial picture, you should probably ask if this deduction you have never seen before will have an effect on your 2018 1040 figures.
Have never understood much about scorp's. Just did a little reading online trying to understand your situation better and I see two things you could put on a list to talk with your accountant about before making any changes.
One: Compensation seems to need to be reasonable compensation. If you have been paying yourself an approximately similar amount each year, and then suddenly want to reduce your compensation after a year of increased earnings, IRS might fuss with you over reasonable compensation issues.
Two: I see reference to something called a pass through deduction which is new for 2018. When you are trying to anticipate 2018 financial picture, you should probably ask if this deduction you have never seen before will have an effect on your 2018 1040 figures.
DISCLAIMER: I AM NOT A CPA!!!
The way I understand it, S corps are pass-throughs. Owners pay personal income taxes on the business profits rather than the business paying. So, when I am suggesting making less money, I am suggesting buying lead lists, hiring an assistant (not your wife because TN care does include household income), buying a vehicle that is titled to the business that you drive, etc., Increasing business expenses so there is less "profit" that you are personally taxed on, so you are taxed only on your own wages just like an employee would be. Which you are going to try to keep under the limit. Is paying an assistant 12k a year worth saving the OOP cost of the therapy? You have to look at the numbers. they may help you double your income, then you will be way out of Coverkids range and can afford to pay OOP for the therapy (plus they are an employee, pay for their insurance and you can have a group plan).
AGAIN I AM NOT A CPA AND TALK TO ONE BEFORE YOU DO ANYTHING ABOUT TAX RAMIFICATIONS. I AM NOT CERTAIN ABOUT ANY OF WHAT I WROTE, CHECK WITH YOUR ACCOUNTANT!!
Edited: Have you checked with the school system you are zoned to to see if any resources are available from them? Worth a shot.
The way I understand it, S corps are pass-throughs. Owners pay personal income taxes on the business profits rather than the business paying. So, when I am suggesting making less money, I am suggesting buying lead lists, hiring an assistant (not your wife because TN care does include household income), buying a vehicle that is titled to the business that you drive, etc., Increasing business expenses so there is less "profit" that you are personally taxed on, so you are taxed only on your own wages just like an employee would be. Which you are going to try to keep under the limit. Is paying an assistant 12k a year worth saving the OOP cost of the therapy? You have to look at the numbers. they may help you double your income, then you will be way out of Coverkids range and can afford to pay OOP for the therapy (plus they are an employee, pay for their insurance and you can have a group plan).
AGAIN I AM NOT A CPA AND TALK TO ONE BEFORE YOU DO ANYTHING ABOUT TAX RAMIFICATIONS. I AM NOT CERTAIN ABOUT ANY OF WHAT I WROTE, CHECK WITH YOUR ACCOUNTANT!!
Edited: Have you checked with the school system you are zoned to to see if any resources are available from them? Worth a shot.
S corporations are taxed in a different way from corporations. The shareholders of an S corporation are taxed on their percentage share of the taxable income, passed through to them on their personal tax returns.
Learn About Corporate Tax Rates and How to Calculate What You Owe
S Corporations are a form of corporate structure that allows businesses to pass corporate income, losses, deductions, and credit through to shareholders for federal tax purposes.
Read more: Form 1120S Form 1120S
Follow us: Investopedia on Facebook
Learn About Corporate Tax Rates and How to Calculate What You Owe
S Corporations are a form of corporate structure that allows businesses to pass corporate income, losses, deductions, and credit through to shareholders for federal tax purposes.
Read more: Form 1120S Form 1120S
Follow us: Investopedia on Facebook
- Thread starter
- #27
This is what I am going to try and do, Good thing I found out is they go by monthly So If I can lower my monthly I could get back in. however I am waiting on last few months profit loss to see where I am at and what I can do, Also want to be sure I can keep it up for rest of year before I submit
It's something to work with but may take some time
He already gets services through the school system and has OT and peach therapies covered
However its the ABA therapy that is the only one really making a difference and getting through to him, In fact, all the other therapies combined doesn't have but a fraction of the effect of ABA
- 7,110
Vic,
My heart aches for you just reading your posts.
LD
My heart aches for you just reading your posts.
LD
Jenifer Williams
New Member
Yes it is true as per my knowledge.
- Thread starter
- #30
Great News, I found out from BC they Are covering ABA, It does go towards the deductible, They claim they told ABA office this
Aba office claims BC told them they do not cover but now says they cleared up misinfo, Not the first time I got a story like this from them But the therapist are great so what are you going to do
Either way i am happy to have it covered.
Anyway, I have another issue the kids cov end in 2 days but new coverage apparently could not start except 1st of the month?
I guess an Obamacare change
Is there still short-term plans I can get for an accident from the 15th or 16th to the end of the month or is that gone from Obama care too
Aba office claims BC told them they do not cover but now says they cleared up misinfo, Not the first time I got a story like this from them But the therapist are great so what are you going to do
Either way i am happy to have it covered.
Anyway, I have another issue the kids cov end in 2 days but new coverage apparently could not start except 1st of the month?
I guess an Obamacare change
Is there still short-term plans I can get for an accident from the 15th or 16th to the end of the month or is that gone from Obama care too
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