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Let’s start with a definition.
A “statutory employee” is an independent contractor who is treated as an employee by statute for the purposes of tax withholding.
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Are you a “statutory” employee?
Then you should know that, if you’re qualified, you can create a Section 105 medical reimbursement plan and come out a big winner.
You see, with a medical reimbursement plan in place, you can turn all your family’s medical expenses into business deductions!
Want to find out how to take advantage of these money-saving opportunities?
Read my new article titled Tax Tips: Section 105 Medical Expense Deduction Plan for Statutory Employee.
- We’ll tell you how to create the best Section 105 deductions. When you create a Section 105 medical plan (as mentioned), you’ll be able to deduct 100-percent of your family’s medical expenses. But that’s not all. You’ll also be able to deduct co-pays, deductibles, and the entire cost of the health insurance your client company may be taking from your income, (commissions for example). You’ll get the whole story when you read the full article.
- You’ll learn when you have to file two Schedule Cs. This is important. You must file one for your W-2 statutory income and another for your 1099 income (such as securities income for the life insurance professional). You’ll get all the details when you read the full article.
- I’ll explain why being married is critical to this plan. It’s very possible that your spouse is helping you in both your statutory employee and 1099 businesses. This requires some type of allocation of expenses. Gross income is the most common allocation, as we’ll explain when you read the full article.