How to Write-off Health Insurance | Mark J Kohler | Tax & Legal Tip


Hi Mark Kohler here with another two-minute tax on legal tip Let’s talk about deducting your health insurance premiums now for millions of Americans that have a day job Where their health insurance is paid for them? They don’t need to worry about this There’s a lot of us out there that pay for our own health insurance And we’ve got to figure out the best way to write it off and not screw it up on our tax return where we have a potential for an audit Number one, let’s assume you don’t have an S. Corporation or LLC you’re just a sole proprietorship that’s probably the easiest way to write off your health insurance because You really can’t mess up the process pay for it personally pay for it out of your sole proprietorship. It’s fine It’s a hundred percent deductible and no matter how you pay for it You just want to provide your accountant with the total premiums paid during the year And it’ll be a self-employed health insurance deduction 100% on the front page of your 1040 EZ sneezing Now the trickiest situation is if you’re an S Corporation because I want you to get that self-employed health insurance deduction and you’ve got to follow specific protocol First and foremost the easiest method to make sure you’re in safe harbor provisions And you’re okay has let the S corporation pay the premium directly for your health insurance That’s the best now if you pay for it personally you may not be entitled to that health insurance Deduction so you have to let the S corporation reimburse you remember Europe employee of the S corporation? Therefore the S corporations got to pay for your benefit You’ve got to follow that protocol even if you’re the 100% owner of the S corporation Now the final step is to make sure if the health insurance premium is indicated and listed Specifically on your w-2 form maybe you say mark. I’m a small business owner. I’ve got an S. Corporation It’s really that important. Yes. If you don’t follow this technical rule you are disallowed that health insurance premium deduction It’s got to be paid for by the S. Corp reimbursed by the S corp and then Indicated on the w2 that how much was paid by the S corporation on your behalf as an employee Then you’re allowed the deduction your accountant can work the magic It’s gonna pop back in on the 1040, but it’s got to be listed on the W in summer You can see that this isn’t the easiest situation to deal with just another reason to make sure you’re talking to your Tax preparer your account your CPA and making sure they’re on top of this type of thing and that they’re asking you for your health insurance Premium milk if they’re not asking you may have the wrong preparer so be careful get some good advice and get with the right type Of advisor thanks so much and keep living that American dream Thanks for listening, and I hope that information is helpful and let me speak from the heart here I’ve been talking about topics like this for 10 15 years I’m a CPA attorney best-selling author radio show host and I am passionate about Helping small business owners save taxes build wealth and protect it Please check out the link right here download my free ebook on 10 common mistakes small business owners make into tax and legal arena Also, check out my social media links here I’ve got daily tips a weekly blog Radio show every week this information is free and I’d love to help you click below find out more about me and thanks for listening You

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