Self employed folks; healthcare?

[Ohio Snake]

I'm getting 1099'd by my employer, as an individual, should I incorporate myself to take advantage of the premium removal for sole proprietors?

As a self employed sole proprietor, you may deduct the premiums on your schedule C. No need to incorporate. The only healthcare benefit you dan get as an S Corp is the possible opportunity to get group coverage with better benefits such as a PPO network. It is important to look at your state healthcare guidelines to see if group benefits are available for your business size and the exact additional benefits over individual plans. I know Ohio very well as that is my resident state. Each state is different for coverage options,


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[Ohio Snake]

I don't think you need to, just as long as you have self employed income to deduct from on your 1040. Sole proprietors aren't incorporated.

Axe an accountant, unless we have one in this thread, but I was able to deduct some health insurance with some drips and drabs of self employment income I had last year (I'm mostly retired)

You are correct. You can deduct the premiums if your a business owner. I think the deduction is schedule C.


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[Ohio Snake]

I'm getting 1099'd by my employer, as an individual, should I incorporate myself to take advantage of the premium removal for sole proprietors?

I have two companies. One is a C corp with less than 10 employees. I do not offer healthcare offer healthcare coverage.

i have another company which is a sole proprietorship. Most of my cash flow comes from the sole proprietorship as per government regulations for my industry. My healthcare premiums are deducted as a business expense and I receive compensation for premiums paid..l sold my policy to myself.

If I could change from a sole proprietorship to an S Corp, I would in a heart beat to reduce my FICA tax.


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[Ohio Snake]

I have two companies. One is a C corp with less than 10 employees. I do not offer healthcare coverage to employees.

i have another company which is a sole proprietorship. Most of my cash flow comes from the sole proprietorship as per government regulations for my industry. My healthcare premiums are deducted as a business expense and I receive compensation for premiums paid..l sold my policy to myself.

If I could change from a sole proprietorship to an S Corp, I would in a heart beat to reduce my FICA tax.


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[OETKB]

If I could change from a sole proprietorship to an S Corp, I would in a heart beat to reduce my FICA tax.

It's what I did. Saved a couple of thousand every year, maybe three.

 

[Ohio Snake]

You really never hear anyone complain about their medicare coverage. I mentioned my wife works in a surgeons office. She told me that if they had to accept what .gov pays for ALL their patients, it would be a whole different ballgame.

Absolutely.


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[Ohio Snake]

What's pathetic is a lot the plans being sold/advertised don't even meet the minimum essential coverage necessary and unless you ask you're just pissing money away. BCBS is my only option, premiums are stupid high, and deductible is still 5,000.

Maybe i'll start identifying as African American, but one that works.

All ACA plans must meet the minimum essential coverage benefits.....its a federal mandate. Non ACA policies ( short term coverage ) does not need to meet the mandate.

I dont think African American will get you anything. You may want to identify yourself as native american, amish , incarcerated, or just be poor to get help.

You can roll the stay healthy dice by not obtaining coverage and trying to stay healthy. But then the shared cost responsibility ( tax penalty) would cost you at tax time. But if you read the healthcare.gov website on penalty waivers, you will see a provision for non payment of a utility bill can get you out of that.


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[Ohio Snake]

It's what I did. Saved a couple of thousand every year, maybe three.

I think the breakeven point for S Corp benefit of fica is $50k.


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[OETKB]

I think the breakeven point for S Corp benefit of fica is $50k.


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I was pretty conservative in terms of the ratio between W2 income and distribution.

 

[P49Y-CY]

You can roll the stay healthy dice by not obtaining coverage and trying to stay healthy. But then the shared cost responsibility ( tax penalty) would cost you at tax time. But if you read the healthcare.gov website on penalty waivers, you will see a provision for non payment of a utility bill can get you out of that.

Isn't the tax penalty (individual mandate) going away for 2017?

 

[Ohio Snake]

Isn't the tax penalty (individual mandate) going away for 2017?

Republicans are pushing to kill that mandate, however nothing has been done. Each time a proposal is put to the House to vote, there are enough Republicans siding with the Dems over potential repercussions of the proposal.
Even if the House and Senate approve a Republican proposal, the writing is on the wall that the Dems will sue for an injunction and get it.
Trump, through a backdoor approach, tried to shut off the subsidy payments in an attempt to choke the system. I think there was an injunction preventing that to happen.
For now, 2018 will operate as 2017 did except there will be higher premiums, worse coverage, reduced or no PPO networks for individuals...slimmer pickings you will pay more for.



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[Equalbracket]

All ACA plans must meet the minimum essential coverage benefits.....its a federal mandate. Non ACA policies ( short term coverage ) does not need to meet the mandate.

I dont think African American will get you anything. You may want to identify yourself as native american, amish , incarcerated, or just be poor to get help.

You can roll the stay healthy dice by not obtaining coverage and trying to stay healthy. But then the shared cost responsibility ( tax penalty) would cost you at tax time. But if you read the healthcare.gov website on penalty waivers, you will see a provision for non payment of a utility bill can get you out of that.


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You're right, good point. But only after just looking at healthcare.gov out of curiosity, I received what seemed like hundreds of calls over 6 weeks time trying to sell me a plan that did not meet the federal mandate.

BCBS has me by the balls, it is what it is. Rather have it and not need it then need it and not have it. But how about a refund every year of your premium's minus what was used.

 

[Ohio Snake]

You're right, good point. But only after just looking at healthcare.gov out of curiosity, I received what seemed like hundreds of calls over 6 weeks time trying to sell me a plan that did not meet the federal mandate.

BCBS has me by the balls, it is what it is. Rather have it and not need it then need it and not have it. But how about a refund every year of your premium's minus what was used.

Your almost talking about the ACA 80/20 rule. This rule was placed to add accountability to carriers whereas the carriers must utilize at least 80% of all premiums received for actual healthcare cost ( confirmed by third party auditing). If less than 80% was used, a refund must be issued to premium payers. This happened one time in 2014 from Anthem BCBS.

Unfortunately, paying an unused premium on a case by case basis would destroy and strap any healthcare system. Carriers are required to maintain cash reserves for paying covered healthcare cost. Carriers must balance premium and interest inflows, cash reserve requirements and ability to meet claim payments.

I really think a Bipartisan approach is the best way to address this national crisis.


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[598]

I think if we had a bipartisan approach in the first place, this wouldn't be a national crisis. This system was designed to fail from day one to create a national crisis so the socialist side of our government could get its single payer system. We are now at that democrat created national crisis, and if Hill would have gotten elected, we would be just watching the single payer shit show that was designed to be put in place once this "surprise crisis" hit.

 

[P49Y-CY]

LOL @ what you wrote on the checks.
Doesn't the new tax bill that just passed remove the Obamacare mandate &, in turn, remove the yearly penalty for not having insurance?

i guess i was wrong...

see post #71

 

[Never_Enough]

i guess i was wrong...

see post #71

Once again, we are screwed.

 

[Ohio Snake]

Once again, we are screwed.

Yes, most Americans will get the shaft. And to add salt to the wound: if Trump could shut off subsidy payments to the carriers, everyone on subsidies (millions) would see their premium responsibility skyrocket immediately. Those without subsidies will see another big increase the following year.

If the ACA is modified, it needs to be done right the first time by both parties.




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[GM Nitemare]

Not to stray too far off topic, but I have a question, and this is not a challenge. My wife works in a busy surgical practice in an admin role, and she has a co-worker from Canada, whose parent still live there. She said her dad died waiting to be treated. I don't recall how long he had to wait. Is this a problem in the current system?

It has happened in the past. But those incidents are few and far between.

 

[cj428mach]

Republicans share blame for not presenting a solution to repeal healthcare AND solve the inherent issues that plague the system. It would not be wise just to repeal the system and most Republicans recognize a full out repeal would destroy the credibility of the the Party if people are denied coverage.

I think you're wrong on this. Yes some people would feel bad for others without coverage but when the bulk of the American population is getting killed by premiums I feel little would care. From what I've seen most responses in regards to the ACA its people complaining about skyrocketing premiums to pay for "free loaders."

The only way to stop this insanity is a full repeal. At first I thought a full repeal and then the govt setting up an insurance pool for "high risk" people that were subsidized was the way to get out of this mess but I know the democrats too well. First it will be a high risk pool for people that can't afford the unrealistic premiums related to their health. Then quickly it will become subsidized health insurance for everyone....aka...single payer or medicare for all.

 

[Ohio Snake]

I think you're wrong on this. Yes some people would feel bad for others without coverage but when the bulk of the American population is getting killed by premiums I feel little would care. From what I've seen most responses in regards to the ACA its people complaining about skyrocketing premiums to pay for "free loaders."

The only way to stop this insanity is a full repeal. At first I thought a full repeal and then the govt setting up an insurance pool for "high risk" people that were subsidized was the way to get out of this mess but I know the democrats too well. First it will be a high risk pool for people that can't afford the unrealistic premiums related to their health. Then quickly it will become subsidized health insurance for everyone....aka...single payer or medicare for all.

“Free loaders” are just part of the problem and applies to those with non-group coverage. Doing a full repeal will send premiums skyrocketing for everyone as those not wanting healthcare fall off the grid reducing the premium pool to spread the risk.

Also, carriers have spent billions to conform to the ACA only to loose billions on the non-group program. Those carriers already said screw it, we’re done and exited the individual side ( Aetna, United and some state BCBS plans are done).

Talk about a huge public backlash for full repeal when people are denied coverage and premiums skyrocket. If I were a republican (or democratic) lawmaker, I would not want that backlash on my party especially with the mid- term elections. Hence the reason some republicans are fighting within their party to not repeal the ACA with what has been presented.

Those that want just a full repeal, may not realize how that may compound the problem. In my opinion, the lawmakers need take a step back to assess the issues from all angles including providers and carriers and then either 1.) repeal the ACA WITH new better balanced immediate plan or 2.) amend the current ACA plan.


BTW-There was a high risk pool for those uninsurable before ACA. Most could not afford it and it was indirectly subsidized by the carriers in each state.

Again, there is no easy answer. This is not just about premiums. Personally , I think the part of the answer lies with containing cost by standardizing what providers charge for services. Your comment on medicare kind of leads down this pathway.


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