HEALTH INSURANCE AND TAX CREDITS
I think of two types of tax credits when I am talking about health insurance with a potential client. A tax credit for a marketplace (ACA) plan if you choose to go that way. Or if you are a small business owner or self-employed, according to which type of health policy you have, you can get up to a 100% tax credit. I want to clarify that I am a licensed health agent since Apr 2013, not a CPA so verify the tax credit information based on your tax circumstance.
When it comes to the relationship between health insurance and tax credits, it boils down to your household family income. You’re eligible for tax credits if your household family income falls between 133% and 400% of the federal poverty level (FPL). If your income is below 133% of the FPL, you’re eligible to enroll in your state’s Medicaid program, which is a form of low-cost health insurance.
Regardless of your position on healthcare politics, know this… knowing yourself, your family dynamics, and having a personal healthcare practice (i.e. physical fitness and diet) is what you CAN control. Working with someone passionate about making sure you have what you need, and someone who is there to help you wade through the healthcare industry’s menus is powerful. That’s who I am…
There is only one option for the business owner and the self-employed. As far as your IRS status, you are a sole proprietor, LLC, LLP, C-corp, or S-corp. If you have a marketplace health policy or on your spouses’ health plan, both will classify you as having an Individual (family) health plan.
When you report the annual amount you paid for the year, you get a 30 or 35% tax credit. That leaves 65 to 60% of the premium you will require tax payment. Private PPO policies qualify for publication 15B; this allows you to write-off 100% of the yearly premium. Book a call with me TODAY!! Whether you buy from me or not, my programs and services will help you optimize your healthcare!