Need help with trying to get tax deduction or savings from my healthcare premium
Hi everyone, I am hoping someone can help or guide my brother and me on any options we might have to get some savings from our healthcare premium through personal or our small business – it is getting very costly for us and unfortunately we do not make that much. In addition, I have talked to several accountants and getting conflicting advice. Here are the details of our plans and additional information if someone can help:
My brother and I pay roughly $18,000 each for our health care plan yearly which is our own individual self paid plan. But our healthcare plan is not from the Healthcare exchange. We have an old healthcare PPO plan from Blue Cross that was grandfathered in when the Affordable Care Act passed. Additionally, this is a very good PPO plan we have that we will not be able to get if we go through the Healthcare exchange marketplace. So we are not eligible for any healthcare rebates since we did not get our plan from the Healthcare exchange.
After talking to several accountants, I was told that we cannot deduct our premium under our personal taxes, only medical expenses that our not the premium. I’m not sure if this is correct?
Another option my brother and I were thinking is the following:
We have a very small family business and we work for our father. It is just the three of us. My father gets his health insurance plan through Medicare. My brother and I have equity of 16% each of the company. And our company is a C corp and tax bracket is 20%.
I was told by one accountant that we can our healthcare premiums in our W2 payroll we get from our company under section 12DD. And then by doing so we can deduct the healthcare insurance premium in our corporate taxes and get 20% back. But then I spoke to another accountant that said the only way to put our healthcare insurance premium cost in our W2 payroll is that it has to be a company owned group policy. So I’m not sure if this is a viable option?
As you can see this is quite frustrating to figure out if there is anyway to get savings from our healthcare premiums, especially since it is very costly and we cannot afford it anymore. I would hate to give up our healthcare plan and hoping someone can help me with an idea or option? Thanks so much for your time and help!!!
