Tag Archives: employer health care

Obamacare, oh my….New changes in Medical Tax Deductions

Beginning this tax year, 2014, the only medical expenses that you can deduct are those in excess of 10% of your adjusted gross income (AGI), up from the previous 7.5% AGI limitation. The limitation remains at 7.5% for taxpayers age 65 and over through 2016, unless they are subject to the alternative minimum tax, in which case it is 10% for them as well. For joint return filers not subject to the AMT, if either spouse is age 65 or older, the 7.5% of AGI limitation applies to their joint medical expenses.

 

If you don’t itemize your deductions or are nowhere near exceeding the AGI limitation, you need not concern yourself with this deduction. On the other hand, if you do itemize and think you might meet the AGI limitation, then it may be worth your time to summarize your medical expenses for the year. Use the following checklist to help you accumulate your deductible medical expenses. The list is by no means all-inclusive, and some of the deductions listed may have additional restrictions not included here.¬†

 

  • ¬†Ambulance
  • ¬†Artificial Limb
  • Artificial Teeth
  • Birth Control Pills
  • ¬†Braille Books and Magazines
  • ¬†Abortion, Legal
  • ¬†Acupuncture
  • ¬†Alcoholism Treatment
  • ¬†Chiropractor
  • ¬†Christian Science Practitioner
  • ¬†Contact Lenses
  • ¬†Crutches
  • ¬†Dental Treatment
  • ¬†Drug Addiction Treatment
  • ¬†Drugs (Prescription)
  • ¬†Eyeglasses
  • ¬†Fertility Enhancement
  • ¬†Guide Dog
  • ¬†Hearing Aids
  • ¬†Hospital Services
  • ¬†Impairment-Related Expenses
  • ¬†Insurance Premiums
  • ¬†Laboratory Fees
  • ¬†Laser Eye Surgery
  • ¬†Lead-based Paint Removal
  • ¬†Learning Disability Treatment Ôā∑ Medicare B & D Premiums
  • ¬†Medical Services
  • ¬†Medicines, Prescribed
  • ¬†Mentally Retarded, Special Home for
  • ¬†Nursing Home
  • ¬†Nursing Services
  • ¬†Operations
  • ¬†Optometrist
  • ¬†Organ Donors
  • ¬†Osteopath
  • ¬†Oxygen
  • ¬†Prosthesis
  • ¬†Psychiatric Care
  • ¬†Psychoanalysis
  • ¬†Psychologist
  • ¬†Special Schools and Education
  • ¬†Sterilization
  • ¬†Stop Smoking Programs
  • ¬†Surgery
  • ¬†Therapy
  • ¬†Vasectomy
  • ¬†Weight-loss Program
  • ¬†Wig (Cancer Patient)

 

Remember that just because your insurance will not cover a particular expense does not mean you can not take a tax deduction for it.

 

If you have questions related to your medical tax deductions please us a call.

 

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Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

Taking advantage of employer tax benefits in your business

As a business owner in New Hampshire, make sure you’re getting these employer tax benefits benefits:

 

1) Dependent Care Benefits‚ÄĒIf you incur childcare expenses so that you can work, you should check to see if your employer has a dependent care program. If dependent care benefits are provided by your employer under a qualified plan, you may be able to exclude up to $5,000 of child care expenses from your wages.¬†

 

2) Employer health care plans allow you to exclude the cost of insurance for you and your family from your wages.

 

3) If your NH employer has a 401(k) plan, you can elect to defer (pre-tax) a maximum of $17,500 for 2013. If you are 50 years or older, the maximum is increased to $23,000. These plans are especially beneficial when the employer provides a matching contribution. 

 

3) Flexible Spending Accounts‚ÄĒSome employers provide flexible spending accounts, which allow an employee to make contributions on a pre-tax salary reduction basis to provide coverage for up to $2,500 of medical and dental expenses.¬†

 

4) Tax-Free (income excludable) Employee Fringe Benefits‚ÄĒIf the employer provides them, the law allows an exclusion from the employee‚Äôs taxable income for the following benefits:
 

(1) The cost of up to $50,000 of group-term life insurance.
 

(2) $245 (in 2013) per month for qualified parking.

 

(3) $245 (in 2013) per month for transit passes and commuter transportation.

 

(4) $20 per month for bicycle commuting expenses.

 

Are you getting all the tax free benefits you can out of your NH business? To learn more, check out Appletree Business Services’ Business Financial Confidence Map.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.