Home Page link  

Individual healthinsurance

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Individual healthinsurance Taps 12-31-2006
Posted by Taps on December 31, 2006, 11:50 pm
Please log in for more thread options
 Last year I decided to go with the individual
healthinsurance plan from BlueCross. Prior to that I was
with my employer's medical plan (cafeteria plan) - where I
was getting the pre-tax dollar benefit. But with the
individual plan that I am in, I wanted to ask if I am
eligible for a similar pre-tax dollar benefit - what can be
done rather than pay a higher tax. I am on a W2. Do not
have any company / corp. under my name.

Thanks.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on January 2, 2007, 4:07 am
Please log in for more thread options
 Taps wrote:

> Last year I decided to go with the individual
> healthinsurance plan from BlueCross. Prior to that I was
> with my employer's medical plan (cafeteria plan) - where I
> was getting the pre-tax dollar benefit. But with the
> individual plan that I am in, I wanted to ask if I am
> eligible for a similar pre-tax dollar benefit - what can be
> done rather than pay a higher tax. I am on a W2. Do not
> have any company / corp. under my name.

The premiums for your employer's medical insurance plan are
paid with pre-tax funds, under a plan established by the
employer. Your BlueCross premiums are paid with after-tax
funds, but are deductible on Schedule A (subject to the 7.5%
of AGI limitation). Your pre-tax premiums (company plan)
cannot be deducted on Schedule A.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on January 3, 2007, 10:49 pm
Please log in for more thread options
> Taps wrote:

>> Last year I decided to go with the individual
>> healthinsurance plan from BlueCross. Prior to that I was
>> with my employer's medical plan (cafeteria plan) - where I
>> was getting the pre-tax dollar benefit. But with the
>> individual plan that I am in, I wanted to ask if I am
>> eligible for a similar pre-tax dollar benefit - what can be
>> done rather than pay a higher tax. I am on a W2. Do not
>> have any company / corp. under my name.

> The premiums for your employer's medical insurance plan are
> paid with pre-tax funds, under a plan established by the
> employer. Your BlueCross premiums are paid with after-tax
> funds, but are deductible on Schedule A (subject to the 7.5%
> of AGI limitation). Your pre-tax premiums (company plan)
> cannot be deducted on Schedule A.

What if he qualifies for a health care savings account. Can
the insurance premiums be paid from that account?

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bob Sandler on January 2, 2007, 4:07 am
Please log in for more thread options
> Last year I decided to go with the individual
> healthinsurance plan from BlueCross. Prior to that I was
> with my employer's medical plan (cafeteria plan) - where I
> was getting the pre-tax dollar benefit. But with the
> individual plan that I am in, I wanted to ask if I am
> eligible for a similar pre-tax dollar benefit - what can be
> done rather than pay a higher tax. I am on a W2. Do not
> have any company / corp. under my name.

You can add the insurance premiums to any other deductible
medical expenses that you claim on Schedule A. Total medical
expenses are reduced by 7.5% of AGI to determine the actual
deductible amount. If your total medical expenses, including
the insurance premiums, are less than 7.5% of AGI, then you
have no deduction.

Bob Sandler

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by BeanTownSteve on January 4, 2007, 8:54 pm
Please log in for more thread options
> Last year I decided to go with the individual
> healthinsurance plan from BlueCross. Prior to that I was
> with my employer's medical plan (cafeteria plan) - where I
> was getting the pre-tax dollar benefit. But with the
> individual plan that I am in, I wanted to ask if I am
> eligible for a similar pre-tax dollar benefit - what can be
> done rather than pay a higher tax. I am on a W2. Do not
> have any company / corp. under my name.

I am certainly NOT sure but......
If his employer has a Flexible Spending Account (which are
usually funded with pre-tax dollars) can he use his premiums
as reimbursable items under the FSA??

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Individual 401(k) February 13, 2007, 1:49 am
individual 401(k) in partnership February 6, 2007, 9:58 pm
Individual 401k for W-2 contractor December 15, 2007, 11:11 pm
Fed. Gov. TSP & Individual 401 Contribution Limits January 3, 2008, 3:23 pm
TDF 90-22.1Joint and Individual accounts June 4, 2006, 1:13 am
Is an individual liable to pay corporate taxes? December 13, 2006, 10:38 pm
Value of Individual Purchased Items For Large Lot Purchase September 27, 2008, 1:22 am
Interest on a loan from a private individual to fund education December 22, 2006, 1:34 am
401K for W-2 job, plus "individual" 401K for 1099 income ? March 17, 2008, 8:28 pm
Solo 401K (aka Individual 401K) same as Super-Simplified 401K? December 3, 2007, 12:49 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap