Yes it is that time of year again when we get to wait for the inevitable countdown to “TAX DAY!”
In some of us it instills fear, and in some of us let’s just say we are glad it is finally here because now we get to take advantage of all those wonderful “TAX” write-offs! With the “Affordable Care Act Tax Provisions” that are now in place, here are some ideas that will help you with that dreaded day.
1. Take a look at HSA’S. That stands for Health Savings Accounts. The benefits that have always been there have only gotten better. The general idea is that there is a One Deductible that either you meet singly or as a family. What is nice about this concept is that with the HSA plan you are allowed to take your money and deposit it into a bank account that will be connected to your HSA insurance plan. The money that is deposited in that account each year is used for all sorts of medical necessities. The annual HSA contribution limits will be $3100 for self-only coverage and $6250 for family coverage.
2. Some ideas of what you can use those dollars for are; home improvements, or special equipment installed in your home provided their main purpose is medical care. Your HSA funds can be used to pay for special equipment installed in a car for use by a person with disabilities. You can pay for a visit to the Chiropractor, or to get your contact lenses or eye surgery and eyeglasses as well as the cost of the eye exam is something you can pay also. In a pinch you HSA funds can only be used to pay insurance premiums for long-term care coverage, health coverage while you receive unemployment benefits and health continuation coverage received under federal law (such as COBRA)
3. Small Business Health Care Tax Credit; this new credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low and moderate income workers. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.
4. Adoption Credit; The affordable Care Act raises the maximum adoption credit to $13,360 per child, up from the $13,170 in 2010 and $12,150 in 2009. The adoption tax credit is refundable for the tax year 2011 meaning that eligible taxpayers can get it even if they owe no tax for that year.
So remember that with this type of an insurance plan an HSA will give you a “tax deduction” on the money you put in your HSA your dollars can grow “tax-deferred.” If you are interested in more control over how your health care dollars are spent, if you are interested in a one-calendar-year deductible per person or family and if you are interested in trading low deductible health insurance for a higher deductible plan to save money on monthly premiums and taxes then this TAX DAY be glad that you have an HSA!