Paying your taxes isn’t something that is optional, but one area where you do have a choice is how you decide to approach your tax deductions. After determining your total income, adding up all the sources of income and subtracting any adjustments to income, you will need to decide which deduction option to choose.
The Tax Cuts and Jobs Act of 2017 represents a major overhaul of the tax code. As a business owner, your accountant should be advising you about the upcoming changes to the tax code and how to best use it in order to keep more of your income. Here are five important changes about which your accountant should be informing you that just came out in the new tax law:
With all this talk about the future of healthcare and the medical industry, it can be hard to determine what’s fake news and what’s not. Regardless of your political stance, it’s important that you understand exactly what happens when new health care related tax laws are added, and how you can leverage the available opportunities to write off medical expenses.
The Bad News
When new tax laws are added (like the Affordable Care Act) the government doesn’t care too much if there are any redundancies or conflicts with the existing code, they just pile the new code on top. Sounds like a nightmare, right?
The Good News
Many people thought the Affordable Care Act would take away their opportunities or their ability to write off medical expenses. That isn’t exactly true. There are still PLENTY of ways for you to write off glasses, braces, massages, acupuncture, and other medical related expenses.
In Fact, Here Are Four Legal Ways to Write off Medical Expenses:
- 1. Flex Plans – Use it or lose it
- 2. Health Savings Accounts (HSA’s) – Like an IRA, but better, for medical stuff.
- 3. A Medical Expense Reimbursement Plan or MERP – This is my favorite, but you can’t always use it. For example, you can’t use one of the MERP types in an S Corp.
- 4. An HRA (Health Reimbursement Account) is another commonly used MERP.
Though there are other ways to write off medical expenses, these are the most widely known. If you want to learn more about how you can save thousands of dollars a year by writing off your family’s medical expenses, download our free eBook here.
*image by Nathan Anderson
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