Medical Tax Strategies
A medical reimbursement plan for a smaller corporation is one of the best tax strategies there is. The reimbursements are 100% deductible for the corporation and are ZERO income to the employee.
As long as you offer the same plan to all the full-time employees of the company, you can make it as comprehensive as you want.
So, if you only have a one-person company, it is an easy choice to make a plan that covers just about everything that is paid out on the human body. And, make it cover the employee's family as well!
Here is a short list of some of the things that have been considered to be medical reimbursable expenses:
- Accident and Health insurance
- Acupuncture
- Adoption
- Air conditioner
- Alcoholism treatment
- Ambulance costs
- Birth control pills
- Blind person's attendant
- Braille person's aids
- Capital expenditures or home modifications for handicapped individuals
- Car or van equipped to accommodate wheelchair passengers
- Childbirth preparation
- Chiropractors
- Christian Science treatment
- Clarinet and lessons to alleviate teeth malocclusion
- Computer data bank for storage of medical records
- Contact lenses
- Contraceptives
- Cosmetic surgery
- Dental fees
- Dentures
- Doctor fees
- Domestic aid
- Drug addiction recovery
- Drugs and prescriptions
- Dyslexia language training
- Electrolysis
- Elevator to alleviate heart condition
- Eye exam and glasses
- Hair transplants
- Health Club dues (prescribed by doctor)
- Hospital care
- Hospital services (outpatient)
- Indian medicine man
- Insulin
- Iron lungs
- Laboratory fees
- Lead paint removal
- Legal expenses
- Mattresses
- Massage
- Nursing homes
- Nursing services
- Obstetrical expenses
- Operations
- Orthopedic shoes
- Osteopaths
- Patterning exercises for handicapped children
- Prosthesis
- Psychiatric care
- Psychologist
- Reclining chairs
- Remedial reading schools
- Sexual dysfunction
- Sterilization operations
- Swimming pool for treatment recommend by a doctor
- Taxicab to doctors office
- Telephones, equipped for deaf persons
- Televisions (close captioned decoder etc)
- Transplants
- Vasectomies
- Vitamins
- Wheels chairs
- Wigs (for alleviation of mental discomfort)
For a complete list of what the IRS says is deductible and how to treat it tax-wise, go to the IRS website.
As you can see there are many things that we all spend money on for ourselves and our families that can be paid for with tax free money.
If you have a corporation and do not know how to put this in place (we include instructions with each new corporate kit that we send), contact us and we will be happy to send you instructions on how to start a medical plan now.
Bookmark Us!
News & Updates
NEWS FLASH: Nevada now requires the Social Security number, date of birth, resident addresses, and telephone numbers of all shareholders, partners, officers, managers and members of all companies formed in Nevada on the state's business license. We bet they did not tell you that.
Wyoming state fees are 87% less than Nevada's. That includes the Nevada "hidden" officer filing fees of $125 that you learn about only after you start your company there, a fee Nevada will hit you within 30 days after you start your company! Oh, and the state business license fee of $200 per year, which was just doubled on July 1st, 2009! We bet they did not tell you about that "after-the-fact" fee either.
Wyoming has no business license fees or officer filing fees. This means we can deliver a quality company package for much less than you would pay in Nevada. And, your Wyoming state renewal fee is $50, in most cases, 84% less than what you will pay in Nevada. And, the nice thing about Wyoming is that is not the only reason to incorporate here.
NEW 2009 study shows Wyoming to be the most business-friendly, lowest tax state, of all 50 states...again.
