Group Health Insurance
Gross income of an employee does not include employer-provided health coverage. It's also a business expense for the EmployER (IRC Section § 105 §106 Business Expenses Publication 535 Employer's Tax Guide to Fringe Benefits Publication 15-B)
S Corps
Individual & Family
Medical expenses are not deductible unless they are more that 7 1/2 % of adjusted gross income. IRS publication 502 html pdf
Tax advantaged savings account to pay medical expenses not covered by Insurance
FAQ's
Can an employer offer an Individual Plan to a couple of employees and everyone else take the Group Plan?
What if the plan only covers some employees, owners and not everyone, is it still deductible?
Employees who decline coverage may not be given back cash. Letting employees choose between insurance and cash makes all insurance contributions taxable, unless you have established a Section 125 cafeteria plan.
Technical Links
Is disability income subject to income tax?
Working Families Tax Relief Act of 2004 Offshore Press Site
Nolo Press
Deduct It! Lower Your Small Business Taxes
Tax Facts on Life Insurance goes into very detailed explanations. It can be purchased for $99 or check their website for a trial subscription
Notice 2004-79 Effect of the Working Families Tax Relief Act of 2004 on Employer-Provided Accident or Health Plans - IRS Site
Free Advice.com Income Tax Law
Metro Bus/Light Rail Trip Planner
Medical Expense Reimbursement Section 105
Uncle Fed - Tax Help - Not a Government Agency
Travel, Entertainment, Meals - IRS Publication 463 for 2003 56 Pages
Simplified version on Uncle Fed's site (not Sam - not a Government Site)
Where's my tax refund?
California and the Federal Government have passed a lot of laws that regulate how Insurance is written, who gets coverage, when a policy can be cancelled, what coverage's have to be included, how it's taxed and so on. We've attempted to have the most important ones explained on this site and links to all reference materials to find anything that's relevant.
Use our search engine or Site Map, to find laws on specific products.
us tax court.gov Opinions Search
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