Printer Friendly

Take my wife, please.

If you own a small business and file a Schedule C, you might be able to include health insurance as a business deduction. If your spouse works for the company on a part-time basis, you can pay him or her a nominal salary, with the extra benefit of full family health insurance coverage.

In one step you accomplish two goals: You put your spouse to work, and you get full health insurance--medical and dental, if desired--as a 100% covered benefit. Without spousal employment, you only receive a 70% health insurance credit, for a 30% tax savings, instead of the full write off on Schedule C and lower social security taxes. Spouses actually have to work to earn the nominal salary. A $1,000 token annual salary with a $10,000 health insurance benefit might be reasonable payment for someone who works six hours a week.--Howard Scott is a business writer and small business tax preparer in Pembroke, Mass.

WE WANT TO HEAR FROM YOU!

Got u question about your bottom line? Send e-mail to npatel@hanley-wood.com, or write to Bottom Line, REMODELING, One Thomas Circle, N.W., Suite 600, Washington. D.C. 20005

COPYRIGHT 2003 Hanley-Wood, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Tax Tips
Author:Scott, Howard
Publication:Remodeling
Date:Sep 1, 2003
Words:195
Previous Article:Cutting overhead.
Next Article:Courting architects.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters