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Tax Deductions: 4 Health Care Tax Strategies for your Business
Using your Health Care to Maximize your Tax Deductions
Health Care is one of the most powerful tax strategies available to maximize the tax savings for your business. As a business owner, you have more options to save on healthcare and insurance costs:
- S-Corp shareholders with 2% or more, can either receive a reimbursement for health insurance premiums or the S-Corp can pay the health insurance premiums directly.
- The S-Corp can deduct the cost under either method. The W-2 earnings for the shareholder must include the amount paid for health premium, and then the shareholder uses 1040 to deduct the premiums as self-employed health insurance deduction.
- Partners may also elect the same treatment for insurance premiums; since partners shouldn’t be paid wages or salary from a partnership they own, premiums should be included as Guaranteed Payments .
- Sole-proprietors can pay for and deduct insurance premiums using their 1040 as a self-employed health insurance deduction.
Filing taxes to maximize your health care savings can be a frustrating task. I’d be happy to help you with your tax preparation:
Sick And Tired of Losing money due to Tax Overpayment?
We can increase your cash flow through tax savings by defining where in the records your profit is hiding within. Schedule a free zoom call with one of our tax specialists today, we’d love to help you!
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