Self-Employed: Take A Tax Deduction On Health Costs

Monday, March 1, 2010

(NAPSA)—There could be big news for the nation’s smallest businessesin this country and the people who work for them. The Small Business Jobs and Credit Act provides an important tax break for the over 23 million self-employed Americans who represent 78 percent of all small businesses in the U.S., according to the National Association for the Self-Employed (NASE). Until now, the self-employed couldn’t get the same tax benefit for health insurance expenses that others enjoy. Other companies can fully deduct the cost of health coverage as a business expense, saving a significant amount in payroll taxes. Now, the self-employed can take a one-year tax deduction for health costs in determining their payroll tax (self-employmenttax). Here are some tips on this new deduction: 1. To qualify for this deduction, self-employed business owners must meetthe following threecriteria: eFile an IRS Form 1040, Schedule C tax form or Schedule E with earned income—this includes sole proprietors, single member LLCs and sole owner S Corporations; and Pay self-employment taxes via IRS Form 1040 Schedule SE; and exit 8" a a ~. e ) wa 5 “PO ga see OSL wees oe , pec SN arene t ye B& a >

--- PHOTOS ---

File: 20190816-142752-20190816-142750-79938.pdf.jpg

--- FILES ---

File: 20190816-142750-79938.pdf