Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Maximize Your Healthcare Tax Deductions Before Year-End! #ProfitablePainter

Name: Painting Biz Owners: Maximize Your Healthcare Tax Deductions Before Year-End! #ProfitablePainter
Uploaded: 2024-12-19T14:15:02+00:00
Duration: 54 s
Channel: Daniel Honan
Description: In this segment, the speaker outlines practical tax‑saving actions for self‑employed painting business owners as the year closes. They explain how to…

19 Dec 2024 · 1 min

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In this segment, the speaker outlines practical tax‑saving actions for self‑employed painting business owners as the year closes. They explain how to fully utilize a Flexible Spending Account (FSA) by scheduling pending medical procedures before year‑end, stress the importance of contributing the maximum $8,300 to a Health Savings Account (HSA) for tax‑free medical expense coverage, suggest considering a Health Reimbursement Arrangement (HRA) for larger health costs despite its setup complexity, and remind self‑employed individuals—especially those operating through an S‑corp—to claim the self‑employed health‑insurance deduction and correctly report insurance premiums on their W‑2 to qualify.

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If you work for a company that has a flexible spending account, you can put up to $3,200. It is use it or lose it. If you've got that money, now's a great time to say, what medical procedures have I been putting off that I need to have done before the end of the year so I can have my FSA pay for it and not have to lose that money? After the FSA, we've got HSA, which we touched on. Make sure you're getting your full $8,300 into that because that money can come out tax-free. To pay for medical costs. If you've got serious medical expenses and it's more than can be covered by an HSA, maybe doing a health reimbursement account for your business. There is some complexity in getting that set up. At the very least, if you are self-employed, make sure you're getting the self-employed health insurance deduction on your personal tax return. If you have an S corp, you're gonna have to make sure your insurance premiums are reported on your W-2 in order to take advantage of that.