Self-employment is a great option for a lot of individuals. This type of income allows you to be the one in control. It gives you the option to pick the hours that you would like to work. You can work at almost any location that you would like and even pick the clients that you like the most. In many cases, you can even pick how much you would like to make each year based on the amount that you charge and how many clients you work with.
Even though being self-employed is a great option for many people, there are also a lot of expenses that come with this kind of work. Not only do you have to handle all the regular expenses that come with a business, but you are responsible for your own taxes, as well as the self-employment tax. Without the right kind of financial planning, you will find that your tax bill can be pretty high when tax season comes again. TH Tax Services is here to help you find out all of the deductions that you can claim in order to reduce your overall tax bill, including the self-employed health insurance deduction.
What is this deduction?
This deduction is a great relief to many people who work on their own at home or without an employer. For many taxpayers, this is not going to be a deduction they can qualify for. The taxpayers will receive their medical insurance from their employer and often the costs are split between the two. In some cases, the employer will pay for all of it, but usually the employee will pay for at least some of the premium. But when you are self-employed, you are responsible for the whole bill.
TH Tax Services will be able to help you out with some of the costs of your medical insurance premiums if you are self-employed. These costs can get expensive over time if you have to take care of them all by yourself. This deduction helps to take back some of these costs and saves you some money when it comes time to file your taxes.
It is important to note that you are not going to be able to claim the whole amount of your medical insurance premiums. Trying to do this can get you in some trouble when it is time to file your taxes. There are some formulas that you can follow that will help you to figure out the exact amount that you are able to take out of your premiums so that you are able to get as much back as possible at the end of the year.
Figuring out your self-employed medical expense deduction can be a challenge. Many business owners choose to forego this deduction because it is too difficult to get organized or they will do the formula wrong. Rather than missing out on money that you deserve or getting in trouble for figuring out the formulas wrongly, make sure to contact the professionals at TH Tax Services to get this all done right.
Who can Claim the Deduction?
Individuals who own their own business or are self-employed are able to claim the self-employed medical insurance deduction. You will be able to claim this deduction on not only yourself but also on your spouse and any dependents. This deduction is going to help you to reduce the amount of income that the IRS will tax at the end of the year and can help to cover the costs of your premium and put more money back in your pocket. If you work from home or are otherwise self-employed and pay for medical insurance, make sure to apply for this deduction.
What all is Covered?
Many of your medical and dental health insurance costs can be covered under this deduction. As a business owner or a self-employed person, you will be responsible for the full cost of your health insurance on your own. While others may receive partial or full help from their employers, this is not an option for you. But with yourself, a spouse, and a few children, it is usually not a good idea to go without health insurance. With the right kind of tax return, you will be able to get several things covered to reduce your taxable income at the end of the year.
The first thing that is covered is your medical insurance. This is the first thing that people will apply to this deduction. This would include the insurance that covers emergencies as well as regular doctor bills. You can deduct this insurance whether you purchase through a private company or you go through the healthcare marketplace. It is also possible to cover the cost of dental insurance, which is often included in your medical insurance, and any long term care insurance that you pay premiums on.
If you are unsure about whether you are able to claim a certain kind of insurance under this deduction, make sure to talk to the professionals at TH Tax services. Our professionals will be able to look at your policy and determine if this medical insurance will qualify you for the deduction.
If you are self-employed and need some assistance with your tax return, make sure to contact Tanya Hernandez from TH Tax Services in Panorama City, CA. They are able to assist you with all your tax needs, including getting your self-employed health insurance deduction. Contact TH Tax Services today to get started.
