 Kristi Eckberg |
tax deductions for health insurance premiums Question for all of you that have been in business for awhile.. I read that being self employed I can deduct 100% of my health insurance premium including my family as well. I have been paying out of pocket and would love to take this deduction however it states that the plan must be established under my business. Problem with that is I cannot apply for any business health insurance when it's just me and no employees. So for all of you independant photographers are you taking this deduction under an individual health plan or how do I do this???
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Mark Feldstein |
Greetings Kristi: First, I don't think it's such a hot idea getting tax advice from a bunch of photographers. There are a lot of other sources available from the IRS call center to their web site. Everyone's tax situation is a bit different, ya know. I mean, if you get audited, you could end up having someone like me go with you since I gave you the advice. YIKES !!!! As far as "business health insurance", there are a number of different ways to structure your biz and various ways to do that in order to take advantages of all sorts of deductions. I'd talk with an accountant to see what they recommend. Finally, if you're in fact a full time photographer, you're probably eligible to join any number of professional associations which, in turn, often offer members access to group health plans of one kind or another. My coverage is provided through ASMP and it's very affordable and quite good. Also, a number of insurance companies these days including Blue Cross / Blue-Shield Blue Cross, Aetna and PacifiCare, offer (affordable????) health plans for individuals and families without any requirement of having to be in business. Personally, I don't think that's an issue as far as the deduction goes but check with an accountant. OR talk it over with your insurance rep. They may be able to provide you with a couple of policies tied together that not only include the health insurance with major medical, but also business liability and property damage insurance. Again, see what some of the associations offer too.
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Jon Close |
Look into setting up a Health Savings Account. It functions like an IRA, contributions to the HSA are tax-deductible. The funds in the HSA can be used to pay medical expenses and the premiums to the companion health insurance plan without being taxed. You do not necessarily have to be an employer or a business to set up an HSA.
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Kristi Eckberg |
Thanks for the advice. I totally understand what you are saying Mark. I'am not yet doing my photography full time. Slowly building up my business. I have gone through the IRS website along with other sites that all say about the same things but all worded a bit different. So my hope was that I would just run across someone here that is a CPA and wouldn't mind giving advice. Which I have had responses before from a CPA that gave some very helpful info. and I think that is great that someone is willing to help others that way. At some point when I'am making more money I will hire my own but at this time I cannot so any advice here is extremly helpful and I fully understand that what ever advice I do get is just that.. advice and I would never say that "oh well this photographer told me this" and use it for my tax purposes. The point is to just get whatever helpful info or links that I can to do more reading on or to see what other photographer just starting out like me do. I find that the IRS website info. is just not as clear as it really should be. Thanks again
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Justin G. |
From PPA.com 'Advantages of Membership: "Insurance
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