Do you operate your business as an S corporation?
If you do, you should be aware of a nasty catch-22 rule that the IRS has cooked up:
Your S corporation may not deduct the cost of your health insurance as a fringe benefit… AND… if you pay for health insurance personally, you can’t deduct the cost as a self-employed individual!
But don’t despair. There is a clever workaround and we’ll tell you what it is when you read my new article titled Tax Tips: S Corporation? Beware of Ugly Tax Rules on Your Health Insurance.
Three ways our fact-filled article can help you:
- We’ll paint the “big picture” for you. If you know what you’re doing (and we do!), you can get a money-saving, above-the-line deduction as an owner/employee. We’ll provide an overview of the problem and the solution when you read the full article.
- We’ll list the five steps you need to take to create your deduction. If you follow my directions, you can save yourself a ton of money. It really isn’t all that hard as you’ll see when you read the full article.
- We’ll explain your health insurance coverage options. Yes. If you like, your employees can get health insurance as a tax free benefit. But you won’t get this benefit! However, if you choose not to cover them, your cost of insurance shows up on your W-2 as a wage, subject to FICA and Medicare taxes. We’ll help you solve this dilemma when you read the full article.