J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

CHAPTER 19

Medical Coverage

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

Medical coverage is an expensive personal expense for most people. So, for many, a job that provides medical coverage offers an important benefit. For the small business owner there is often a need to obtain personal coverage. It may also be imperative to offer medical coverage as a benefit to attract and keep good employees. A deduction of all or a portion of the cost of medical coverage is a significant cost-saving feature of providing such coverage.

On March 23, 2010, the historic Patient Protection and Affordable Care Act was signed into law; the following week the Health Care and Education Reconciliation Act became law. Essentially, these acts mandate that every individual in the United States have health coverage, and that certain employers provide affordable coverage or pay a penalty starting in 2014. On June 28, 2012, the U.S. Supreme Court upheld the constitutionality of the individual mandate. Some of the revenue provisions of the law apply in 2012; many others are staged in over a number of years. The impact of this law on small business owners remains to be seen.

In this chapter you will learn about:

• Deducting medical insurance
• Deducting health insurance for self-employed ...