health ins write off?

Discussion in 'Business Operations' started by GarPA, Mar 31, 2004.

  1. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    My accountant left me a message yesterday asking what my total health ins premiums were for '03. Have not called him back yet but he seems to be inferring that I can write off this as an 'expense'. Duh...I've never included this premium as a write off this a write off I can take?

    this year we're getting the ins from my wifes employer as the rates are better than what I can get thru the business
  2. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    100% of it Gary.
  3. raintreelawns

    raintreelawns LawnSite Member
    Messages: 10

    You betcha! I've owned my own business for over 7 years now and have taken it off every year. It is a HUGE deduction for me.
  4. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    thanks I just thought that this was a personal expense that we all just have to this is a pleasant surprise...hey Rod....can you say Cha-Ching!!
  5. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    For 2002 it was a 70% writeoff. For 2003 and after it is a 100% writeoff.

    If you didn't do this in the past you may want to talk with the accountant about possibly re-filing the previous returns. It could make some $$ differences. Happens all the time.
  6. WAGS LandL

    WAGS LandL LawnSite Member
    Messages: 82

    The tax law changed in 04 and you can deduct 100% of your
    premium payments. As long as you paid for them from your
    business. In other words if the benefits come from your wife's
    employer, the premium is not deductible.
  7. missytheaccountant

    missytheaccountant LawnSite Member
    from Bama
    Messages: 45

    Yes you can take it as a deduction....100% is correct. I will come off to figure your adjusted gross income.
  8. GreenQuest Lawn

    GreenQuest Lawn LawnSite Senior Member
    Messages: 822

    The other thing I found out is if the total of all medical (prescription co pay, doctor copay, eyeglasses,contacts, dental, ect ect, other than your insurance premiums, if they account for 7.5% of your yearly income that is a deduction as well.

    My dad first informed me of this one, then I heard it on the radio as well. I did not have that last year but with the baby bills this year I surely will.

    We have started saving recipts, and I will get reprints next time I go to the doc, the dentist, just in case I am missing any.
  9. missytheaccountant

    missytheaccountant LawnSite Member
    from Bama
    Messages: 45

    You can also deduct mileage for trips to and from the doctor....this year is it 12 cents per mile
  10. specialtylc

    specialtylc LawnSite Bronze Member
    Messages: 1,656

    Also if you have life insurance its also deductible.

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