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Author: dohru One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Health insurance, wife self employed Date: 3/30/2014 11:29 AM
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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!
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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120627 of 121095
Subject: Re: Health insurance, wife self employed Date: 3/30/2014 3:52 PM
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It maybe a moot point. Are your health insurance premiums paid pre-tax?

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Author: dohru One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120628 of 121095
Subject: Re: Health insurance, wife self employed Date: 3/30/2014 6:25 PM
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Yes, mine are included in my compensation.

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120629 of 121095
Subject: Re: Health insurance, wife self employed Date: 3/30/2014 8:23 PM
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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

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Author: dohru One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120630 of 121095
Subject: Re: Health insurance, wife self employed Date: 3/30/2014 9:27 PM
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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.

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Author: dohru One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120635 of 121095
Subject: Re: Health insurance, wife self employed Date: 3/31/2014 2:38 PM
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Also, we're not paying premiums through my work yet, but rather are debating whether it makes sense to do so.

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120636 of 121095
Subject: Re: Health insurance, wife self employed Date: 4/1/2014 2:55 AM
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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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