Plans For Self Employed Health Insurance
Good news that might elate you is since the year 2003, self employed health insurance premiums are 100% tax deductible. Such tax deductions are available whether you are itemized or not.
You must, however, bear in mind that such 100% tax deduction is only applicable to your income tax payables. Such deduction does not automatically reduce your income limits. In result you will not be eligible for any social security tax deductions. Therefore you will have to pay the 15.3% self employment tax provided under the taxation laws in USA.
In such cases, the use of section 105 plans could prove to be beneficial for you. When you take recourse to this plan, neither the employer nor the employee has to pay the social security taxes any more. On the other hand you become eligible for the additional 15.3% tax deductions as well.
You will have to further remember that health insurance for the people who are self employed is not the same as the corporations. Therefore, you have to take care that the plans provided are neither inadequate nor give you the minimal coverage. What you are required to avoid are companies that charge you high premiums for minimal services.
Dishonest insurers also lay carefully designed booby traps for you. In result you will find that despite the very attractive price that induced you to buy the insurance policy you are carrying, your benefits are less and you have to pay more for any additional benefits. This will never be a welcome situation for you.
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