If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet to figure the amount you can deduct. However use IRS Publication 535 instead if any of the following applies. You had more than one source of income subject to self-employment tax. You file Form 2555 or 2555-EZ. You are using amounts paid for qualified long-term…Details
The small employer health insurance credit is applied for on IRS Form 8941. The credit itself is based on the non-shareholder staff, their hours worked, wages and the premiums paid for them. The hours worked, wages and health insurance premiums of shareholders are not taken into account for purposes of the credit under §45R(e)(1)(A).
The Tax Credit for Employee Health Insurance Expenses of Small Employers is part of the Patient Protection and Affordable Care Act which was signed into law in March of 2010. The Act makes a credit available to small employers who pay at least 50% of the cost of qualifying health care coverage for their employees.…Details
When signing up for a health insurance plan registered under your business, the business may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents if you are one of the following: A self-employed individual with a net profit reported on Schedule C…Details
For tax year 2010, a self-employed taxpayer will be eligible to claim a self-employed health insurance deduction on Line 29 of Form 1040. Additionally taxpayers also receive a corresponding deduction when calculating self-employment taxes. When calculating self-employment tax, taxpayers can claim a self-employed health insurance deduction, but only for tax years beginning in 2010 [§162(l)(4)].…Details
A tax payer is the 100% owner/employee of an S corporation that she started in 2010. She only wants to take $2,000 in wages for the first year. In addition, she would like the S corporation to pay for her health insurance, which costs about $4,800 per year. Her friend told her that if the…Details