The ACA changes are rather confusing, and I just learned on friday that I will be able to switch my insurance to Kaiser (which my family is on), and also that I could add my family to my work insurance (but would have to pay for them). My wife is self employed, and I'm trying to figure out if she'll still be able to get the tax deduction if I buy insurance for her and the kids through my work?Thanks much!
It maybe a moot point. Are your health insurance premiums paid pre-tax?
Yes, mine are included in my compensation.
That's not the question.The technical question is: Are the premiums you are paying through your employer for your family part of a Section 125 plan? Sometimes called a flex plan?If so, your employer will reduce your taxable wages by the amount you are paying for the insurance. So you are already getting a tax deduction, and don't need to deduct them separately on your 1040.--Peter
Ah, I see. I did ask if my family insurance would be paid pre tax and was told no, only mine. This is the first I've heard the terms section 125 or flex plan.
Also, we're not paying premiums through my work yet, but rather are debating whether it makes sense to do so.
This is the first I've heard the terms section 125 or flex plan. That's why I don't prepare my own tax returns, and feel comfortable entrusting their preparation to a CPA. Peter does a decent job in his profession, and doesn't break me on fees he has charged - Very professional, and certainly worth the modest fee charged.Bob
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