IRS Website on Small Biz Tax Credit
3 step worksheet
Blue Cross FAQ'sGross income of an employee does not include employer-provided health coverage
For more details check these links IRC Section § 105 §106 Business Expenses Publication 535 Employer's Tax Guide to Fringe Benefits Publication 15-B
Self Employed Deduction Group Health Deduction $106
Can an employer offer an Individual Plan to a couple of employees and everyone else take the Group Plan?
Similarly Situated Individuals - Protections
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.
HSA - Health Savings Accounts - Taxation
Medical expenses are not deductible unless they are more that 7 1/2 % of adjusted gross income. See IRS publication 502 for details & explanation. Check out HSA's for a way to have a tax advantaged savings account to pay medical expenses not covered by Insurance
The federal Health Coverage Tax Credit was created by the Trade Act of 2002 to help certain displaced workers and certain retirees pay for health insurance.
Generally, those eligible to claim the credit fall into one of two categories:
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About half are trade-impacted workers who have lost their jobs because of increased imports or a shift in production to another country and are classified as Trade Adjustment Assistance (TAA) or Alternative Trade Adjustment Assistance (ATAA) eligible.
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The other half are individuals whose pensions are being paid by the Pension Benefit Guaranty Corporation (PBGC), are at least 55 years of age and not entitled to Medicare.
The credit covers 65 percent of the cost of qualified health insurance for eligible individuals and their qualified family members. To receive the HCTC an individual must be enrolled in a qualified health insurance plan. Some individuals may already be enrolled in a form of insurance that is automatically qualified such as COBRA continuation coverage, certain spousal coverage or individual (non-group) health insurance coverage that began at least 30 days prior to separation from employment. Additional qualified individual plans may be available depending on the state where the eligible individual lives. Information about state qualified health plans is available on IRS.gov, enter keyword HCTC.
IRS.Gov
Health Coverage Tax Credit Overview
Treasury Press Release on The Health Coverage Tax Credit
Eligibility
CA Kaiser is the only one qualified IRS.Gov
They do not use Brokers for this program. Please call them DIRECTLY @ 1-800-464-4000
Health Insurance Info. Net
Links
They will also create a new Small Business Health Tax Credit to provide small businesses with a refundable tax credit of up to 50 percent on premiums paid by small businesses on behalf of their employees.
Health Savings Accounts
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
IRS Publication 502 HTML, What are Medical and Dental Expenses?
Free Advice.com Income Tax Law
IRS Publication 502 Deducting Medical Expenses
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.
Similarly Situated Employees
us tax court.gov Opinions Search
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