Health care and taxes

by Guest » Mon Oct 28, 2013 09:03 pm
Guest

Will our healthcare premiums still be tax deferred under the exchange, or will our premiums just go up and we lose the tax shelter also? This is two person household with income over 62,000.

Total Comments: 1

Posted: Fri Nov 01, 2013 12:46 pm Post Subject:

Will our healthcare premiums still be tax deferred, or will . . . we lose the tax shelter also?


Health insurance premiums have never been "tax deferred" or tax-sheltered" so I really don't know what you are asking about. Are you a business owner?

What tax shelter are you asking about? Are you putting money into a Health Savings Account (HSA) and purchasing a High Deductible Health Plan (HDHP)? HSA contributions cannot be used to pay insurance premiums, only actual qualified medical expenses. Self-employed business owners may still deduct 100% of the cost health insurance premiums as an expense against business profits.

A two-person household with income of $62,000 is not eligible for premium tax credits under the PPACA, and a husband and wife do not qualify as a two-employee group for SHOP eligibility either.

HSAa and HDHPs have not been eliminated, and may still be used as before. But don't expect to pay the same or less for an HDHP in 2014 than in 2013.

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