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Do you guys pay for your familys health ins. out of your business checking, or personal checking? I understand that health ins. for the self employed is a write off, so I want to make sure that I'm paying it correctly.

Right now I have health ins. for my family as part of my projected annual overhead. My salary is also part of my projected overhead. So I was wondering if I should take the heath ins. cost out of my overhead, and put it in my personal budget since it will be my salary, which is also in overhead that I pay my health premiums with.

However it's done I want to make sure to reap the tax benefits at the end of the year. Color me confused. Thanks in advance for the replies.
 

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donb1959 said:
Do you guys pay for your familys health ins. out of your business checking, or personal checking? I understand that health ins. for the self employed is a write off, so I want to make sure that I'm paying it correctly.

Right now I have health ins. for my family as part of my projected annual overhead. My salary is also part of my projected overhead. So I was wondering if I should take the heath ins. cost out of my overhead, and put it in my personal budget since it will be my salary, which is also in overhead that I pay my health premiums with.

However it's done I want to make sure to reap the tax benefits at the end of the year. Color me confused. Thanks in advance for the replies.
How many employees do you have? If you have none you can hire your wife, and provide health insurance to her which covers your family. The entire amount you spend on the insurance is deductible.

However providing insurance is usually a non discriminatory benefit. If you give it to your wife you OFTEN must offer it to all of your other employees.
 

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"Buy Quality, Cry Once"
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Discussion Starter · #3 ·
CogentRES said:
How many employees do you have? If you have none you can hire your wife, and provide health insurance to her which covers your family. The entire amount you spend on the insurance is deductible.

However providing insurance is usually a non discriminatory benefit. If you give it to your wife you OFTEN must offer it to all of your other employees.
There's just she and I right now. Thanks for the advice, anyone else want to comment, I really need to get this part right. Thanks again.
 

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"However providing insurance is usually a non discriminatory benefit."

This depends.... I know in Illinois if you don't buy a group plan, but a collection of individual plans - it is not a nondiscriminatory benefit.

Tim
 

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Meet with a tax lawyer and have him draft you a Self Insured Medical Reimbursement Plan. They can cost from $300-600 and they must only be created once. I could not find a complete, concise desription of one of these plans online, but it sounds like you could benefit from having one.

It allows you to deduct all medical expenses that your insurance does not cover.

But:
" Based on new IRS policy, all wages plus the potential payout from the Self insured medical plan must be reasonable in amount. It is thus crucial to meet with your accountant about this."-Sandy Botkin
 

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Many Chambers of Commerce offer ins. You have to be a member to qualify, you get group rates that can cover family and employees. If you are Inc., make the wife and kids stockholders and all is covered as a business ded.
 
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