Tax Benefits of Health Savings Accounts

Brian SingletonBlog, Watch Your Wallet

While similar to FSAs (Flexible Savings Plans) in that both allow pre-tax contributions, Health Savings Accounts or HSAs offer taxpayers several additional tax benefits such as contributions that roll over from year to year (i.e., no “use it or lose it”), tax-free interest on earnings, and when used for qualified medical expenses, tax-free distributions. What is a Health Savings Account? A Health Savings Account is a type of savings account that allows you to set aside money pre-tax to pay … Read More

Health Flexible Spending Arrangements in 2016

Brian SingletonBlog, Watch Your Wallet

Eligible employees should begin planning now to take full advantage of their employer's health flexible spending arrangement (FSA) during 2016. FSAsĀ provide employees a way to use tax-free dollars to pay medical expenses not covered by other health plans. Because eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, many employers this fall are offering their employees the option to participate during the 2016 plan year. Interested employees wishing to contribute during the ... Read More

Tax Tips for Starting a Business

Brian SingletonBlog, Watch Your Wallet

When you start a business, a key to your success is to know your tax obligations. You may not only need to know about income tax rules but also about payroll tax rules. Here are five tax tips that can help you get your business off to a good start. 1. Business Structure. An early choice you need to make is to decide on the type of structure for your business. The most common types are sole proprietor, partnership and … Read More

It’s Time for a Premium Tax Credit Checkup

Brian SingletonBlog, Watch Your Wallet

If you have insurance through the Health Insurance Marketplace, you may be getting advance payments of the premium tax credit. These are paid directly to your insurance company to lower your monthly premium. Changes in your income or family size may affect your premium tax credit. If your circumstances have changed, now is the time for a checkup to see if you need to adjust the premium assistance you are receiving. You should report changes that have occurred since you … Read More

Tax Facts: Medical and Dental Expenses

Brian SingletonBlog, Watch Your Wallet

If you, your spouse or dependents had significant medical or dental costs in 2015, you may be able to deduct those expenses when you file your tax return. Here are eight things you should know about medical and dental expenses and other benefits. 1. You must itemize. You can only claim medical expenses that you paid for in 2015, and only if you itemize on Schedule A on Form 1040. If you take the standard deduction, you can’t claim these … Read More

Changes Affecting your 2015 Premium Tax Credit

Brian SingletonBlog, Watch Your Wallet

If you have enrolled for health coverage through the Health Insurance Marketplace and receive advance payments of the premium tax credit in 2015, it is important that you report changes in circumstances, such as changes in your income or family size, to your Marketplace. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Marketplace. Having at least some of your credit paid in advance directly to your insurance … Read More