Zane Benefits Publishes New Information on Tax Exclusions, Tax Deductions and Tax Credits in Healthcare

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Tax Subsidies for Healthcare Costs Are Embedded in the Current Structure of the Individual Income Tax

Today, Zane Benefits, Inc. published new information on tax exclusions, tax deductions, and tax credits in healthcare. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement accounts.

According to the Zane Benefits’ website, several types of tax subsidies for health care costs are embedded in the current structure of the individual income tax. Tax subsidies can take the form of exclusions, deductions, or credits, each of which has a different structure and different effects on individual income tax liabilities. The website outlines the three types of tax subsidies.

First, according to Zane Benefits, a tax exclusion reduces the amount that a tax filer reports as their total, or gross, income. Some types of income are excluded because they are difficult to measure. Other types of income are excluded to reflect policy choices to encourage taxpayers to engage in a particular activity.

Second, according to Zane Benefits, a tax deduction is an expense that is subtracted from total income when calculating taxable income. It reduces tax liability in proportion to an individual’s tax bracket. All taxpayers may subtract certain types of income or expenses, commonly referred to as above-the-line deductions, from total income to derive their adjusted gross income. Those deductions may try to adjust for differences among taxpayers in terms of family or other personal characteristics or to meet other goals of tax and social policy.

Third, according to Zane Benefits, a tax credit is the direct dollar-for-dollar reduction of an individual’s tax liability. If the tax credit is refundable, individuals can receive its full amount even if they do not have any income tax to offset. An important distinction between tax credits, on the one hand, and exclusions and deductions, on the other, is that a tax credit can be designed so that its dollar value does not depend on one’s tax bracket.

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About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangement (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit

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Ryan Knapp
Zane Benefits
800-391-9209 6709
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