Free 2018 Tax Planning2019-01-05T15:05:52+00:00

Free 2018 Tax Planning

Medical expenses

One of the advantages of being a  married taxpayer is the ability to hire your spouse. This gives the business the ability to establish benefits not available to single taxpayers who run s corporations or sole proprietorship.

One such benefit is the qualified small employer health reimbursement arrangement (Qsehra) signed by Obama in December 2016.

Qsehra allows:

  • Reimbursement of medical expenses and premium for up to $5,050 a year for singles and $10,250 a year for families.
  • It is the only plan that allows for reimbursement of premiums and medical expenses.

To qualify the business cannot:

  • Have a traditional group plan
  • Have over 50 employees
  • Have health plans without minimum essential coverage

Qsehra is not available to owners that run businesses as sole proprietors or s corporations (more than 2% owner). However, a business owner running their business as a c corporation can make elect to establish Qsehra.

Considering the fact that most taxpayers will not be able to itemize their deductions in 2018, establishing a Qsehra is one way to get a tax benefit for medical expenses. When the spouse is hired as the employee, she gets reimbursed by the business for family health expenses.

For more information on how to establish a Qsehra plan, please send a message by clicking here.