Painting business owners can deduct health insurance premiums on their personal tax return. Self-employed painters save the full premium amount; S-corp owners get roughly 14% extra savings because health benefits skip FICA taxes.
If you're a painting business owner that is a sole proprietor or S corp owner and you pay for health insurance, this tax strategy is for you. Now, if you're self-employed and you pay for your own health insurance premiums, you can take advantage of the self-employed health insurance deduction. This allows you to deduct the cost of your premiums on your personal tax return, helping you save on taxes. If you're an S corp— if your S corp company pays your health insurance premiums, you'll need to add that amount to your W-2 as taxable income since you're the S corp as an officer owner. But don't worry, you can deduct the same amount from your taxes, effectively canceling out that additional income. And now here's a bonus tip: health insurance benefits are not subject to FICA taxes. So when you deduct your health insurance premiums, you're also saving around 14% on the cost of your health insurance. A great opportunity to keep more money in your pocket. Deducting health insurance premiums as a self-employed individual or S corp owner can provide significant tax savings. So make sure you take advantage of this deduction and enjoy the extra savings on your health insurance.
What’s REALLY Holding Your Painting Business Back? (Find Your Bottleneck in 5 Minutes)
