The IRS Deductions Blog

Archive for August, 2010

Question: What does ‘No Charge after $5000 maternity deductible’ mean?

I am looking for suitable insurance plans for my wife, and one thing that is important is pregnancy coverage. What does ‘No Charge after $5000 maternity deductible’ mean? This was next to the words for ‘Pre & Postnatal Office Visit”s.
Does this mean we have to pay $5,000 out of pocket for those visits? Does this mean we have to pay that first before insurance kicks in?

Answer: A $5000 deductible means that you pay the first $5000 out of pocket. (Deductible comes first.)

“no charge after” means that the insurer picks up 100% of the cost for covered services, after the deductible is met.

In other words, you pay the first $5000 and pay nothing for covered services after that.

(You’d still be liable for “non-covered services” though…whether its convenience items like television, long distance phone calls, etc or anything else that isn’t covered by your policy.)

Items on Amazon Right Now for After Deductible:

KRIKORIAN: Daschbach to brave freezing waters for charity

If you didn’t know better, you would think Rooney Daschbach is a perfectly normal individual who lives a perfectly normal life in a perfectly normal setting.

Insurance Tips & Facts : How Do Deductibles Work on Health Insurance?

Question: Deducting Health Insurance Premiums?

I am self employed but my husband is employed by someone. He is able to get insurance for himself from his employer but to add myself and our daughter on it would be an additional $15,000 a year – I’m not exaggerating,it’s really ridiculous. So, we have purchased health insurance elsewhere for the 2 of us. Now, my question is, are these premiums deductible (since I am self employed) even though we could get it through his work? No one in their right mind is getting it there for their family. Thanks for any help!

Answer: If the $15,000 plan is “subsidized”, then you do not qualify for the deduction that is specifically for self-employed persons. The rules for that deduction specifically state that anyone who is eligible for health insurance subsized by either their own employer or their spouse’s employer is absolutely prohibited from claiming that deduction. Because you are eligible for the $15,000 plan, you are ineligible for the deduction that is only available to self-employed persons.

Also, the deduction that is only for self-employed persons applies only to a plan that is organized under your business. If the health insurance for which you are paying is not part of a plan organized under your business, then you are ineligible for the deduction that is only available to self-employed persons.

However, like a person who is not self-employed, you can claim a Schedule A deduction for the amount by which the total of all your medical and dental expenses, including the health insurance premiums, exceeds a certain percentage of your AGI. However, this is $0 in most cases.

Items on Amazon Right Now for Health Insurance Premium Deductible:

Health Insurance: Some Imperfect Options for Those with Pre-existing Conditions

Several years ago my mother tripped on a tour of Italy and wound up in the emergency room. On the way out she stopped to pay and was met with a baffled look. Under Italy’s health-care system, there would be no charge, she was told. Mom pointed out she was an American tourist and hadn’t paid anything into the Italian system. Doesn’t matter, the hospital folks said, her care was free. In the U.S …

Lowering Premiums by Increasing Deductibles (Step 4)

Question: I already have a Blue Advantage health care plan from Blue Cross Blue Shield of NC, how can I open a HSA?

My wife and I are interested in opening a health savings account in conjunction with our Blue advantage high deductible plan. I was told at signup that this was included, but cannot find information anywhere. Does anyone know how I can sign up for a HSA?

Answer: You have to sign up separately for the actual HSA. It’s offered by most banks and investment companies.

I opened my HSA about 4-years ago. At that time, my broker found a low-cost HSA through American Chartered Bank in IL. When I set it up there was only a $10 fee.

http://www.americanchartered.com/

You don’t have to be anywhere near the bank. I’m in Calif and do all my transactions via snail male.

Items on Amazon Right Now for High Deductible Hsa Plan:

Ditching Traditional Health Insurance for a Health Savings Account Plan [Healthcare]

# healthcare If you’re fed up with your health care provider and think you could manage your medical bills better yourself, a health savings account might be a better option for you and your family. More »

High Deductible Health Plan (HDHP) + Aggregate Wrap Stop Loss Insurance

Question: With Itemized Deductions, is there a daily credit for temporary work?

A tax preparer informed me that since i work temporary short term construction jos, I can claim $30 a day for this in unreimbursed employee expenses. Is this correct information?

Answer: I have never heard of such a thing. Have him point it out to you on the IRS web site. The only reference for $30 a day is travel expenses and that would be travel to another city.

Items on Amazon Right Now for Construction Tax Deductions:

Pogue Construction founder faces sentencing in late August

The former president and found a major McKinney construction company will face sentencing for his federal tax charges later this month.

Tax Planning Houston & Houston Tax Accounting for Construction Contractors

Question: a tax filing question?

I am filing married this year-should I file jointly or separately since my spouse is in the military and I was in college and we lived apart the entire year? Also, so far on turbo tax it is telling me I get no state refunds and a very low federal–is this correct and is it because I am now married whereas before I always got a higher federal refund and state refunds?? How come it will not let me enter in educational deductions just because I am married filing seperately?

Answer: You will almost always pay less tax by filing a joint return with your husband. You do NOT need to live together to file a joint return.

If you file separate returns, not only are the tax rates higher but you lose out on many deductions and credits that you would qualify for it you file a joint return. Turbo Tax (or any other tax prep software) won’t allow you to claim any of those on separate returns. Earned Income Tax Credit, educational credits and deductions, Child Tax Credit and the Additional Child Tax Credit are all lost when you file separate returns.

Married taxpayers filing separate returns pay the highest taxes, higher than Single taxpayers even. That’s why your refund is smaller if you file separately than if you were still Single.

Items on Amazon Right Now for Educational Tax Deductions:

Women are still paid less than men in state, nation – From the Poughkeepsie Journal

Last year, the gender wage gap was slightly better for women in New York state compared to national averages, according to a recent report from the U.S. Bureau of Labor Statistics.

Recovery: Education Tax Credit-Claim It-Students – Jan 2010