Park City, Utah (PRWEB) March 15, 2013
Today, Zane Benefits, Inc. published new information on health insurance taxes. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement arrangements.
According to Zane Benefits’ website, this year’s tax season is a good time for consumers to familiarize themselves with the possible tax consequences of health reform provisions scheduled to come into effect in January of 2014. Here are 7 health insurance tax tips from eHealth for this past tax year.
Health Insurance Tax Tip #1 - Itemize medical expenses while you can
According to Zane Benefits’ website, not everyone has medical expenses high enough to deduct them on their federal tax returns, but even fewer will be able to do so next year. 2012 is the last year you'll be able to itemize and deduct medical expenses in excess of 7.5% of your adjusted gross income. As a result of health reform, that threshold is being raised to 10% for the 2013 tax year. So, if you itemize on your federal tax return, do the math. Qualifying medical expenses in excess of 7.5% of your adjusted gross income for 2012 may be itemized. You can refer to IRS Publication 502 for more information about qualifying medical expenses, but these may include monthly premiums you pay for coverage (including some Medicare premiums), co-payments, deductibles, dental expenses, and costs for some services not covered by your insurance plan. You may even deduct mileage accrued while driving to and from regular appointments. This deduction isn't for everyone, but if you (or one of your dependents) were seriously ill or hospitalized last year, you may qualify.
Health Insurance Tax Tip #2 - Expenses for the care for an aging parent
According to Zane Benefits’ website, if your elderly parent earned less than $3,800 in 2012 (excluding Social Security in most cases) and you provided more than half of his or her financial support, you may be able to claim your parent as a dependent. This earns you an additional dependent exemption, even if your parent doesn't live with you. And if you've paid for the medical or nursing care of a dependent parent, you may also be able to itemize your costs as qualified medical expenses.
Health Insurance Tax Tip #3 - Medicare premiums and medical home improvements
According to Zane Benefits’ website, if you're a retired senior, you may have an easier time meeting the 7.5% adjusted gross income threshold to deduct itemized medical expenses on your federal return. In addition to your out-of-pocket expenses for medical, dental or vision care, you may also be able to include capital expenses for the installation of home medical equipment or improvements of your property for wheel-chair access. In addition, premiums taken from your Social Security check to pay for Medicare Part B may qualify as deductible, as well as premiums you paid for Medicare Part D (Prescription Drug) coverage or a Medicare Supplemental plan.
Health Insurance Tax Tip #4 - Deducting health insurance premiums as a business expense
According to Zane Benefits’ website, if you had self-employment income in 2012, you may be able to deduct health insurance premiums you paid for yourself and your dependents as an 'above the line' business expense (that is, without itemizing) on your federal tax return. Be aware, however, that you may not deduct premiums (including Medicare premiums) paid for any month in which you were eligible to participate in an employer-sponsored health insurance plan, and the amount you deduct cannot be greater than your net self-employment income for the year. Also, keep in mind that you cannot include what you paid toward your monthly premiums as an 'above the line' expense and also itemize it. Talk to a tax professional to learn more about the different types of self-employment status and the tax implications of each in your state.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. 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 http://www.zanebenefits.com.