Health Insurance And Self-Employed People

By: Taylor

Self-employed people with no employees can choose from several options available for insurance coverage. The Affordable Care Act has expanded their options and they can reap its benefits from 2014. Few important things self-employed people should know are discussed below.

In states where self-employed people are allowed to buy small employer health insurance, they have access to similar health insurance options as small business.
In states where self-employed people are not allowed to buy small employer health insurance plans, they have access to individual health insurance plans.
Self-employed people having health insurance may have cost of the health insurance as deductible in federal taxes. They may get premiums paid for medical and dental insurance and qualified long-term care insurance for them, your spouse and dependants, deducted from federal taxes. The insurance covering a child under age of 26 also qualifies for deduction.
Tax credit will available from 2014 for health insurance purchased through the Health Insurance Marketplace. It will be available to self-employed people with income between 100% and 400% of the federal poverty line, who are not qualified for other affordable coverage. 400% of the poverty line was about $43,000 for an individual and $88,000 for a family of four in 2010.
The insurance plan must be established, or considered to be established to get deduction on insurance costs.
Self-employed individuals filing a Schedule C, C-EZ, or F must have a policy either in the name of the business or in the name of the individual and in case of partners a policy must be either in the name of the partnership or in the name of the partner. Premium can be paid by either of the partners.
People having more-than-2% shareholding must have a policy either in the name of the S corporation or in the name of the shareholder. Premium can be paid by shareholder or the S corporation.
Medicare premiums voluntarily paid to get the insurance on oneís name similar to qualifying private health insurance are also liable to deduction.
Non-taxable premiums for health insurance coverage from retirement plan distributions by a retired public safety officer cannot be included to get the deduction.
Creation of Health Insurance Marketplace has made easy access to insurances offered by private companies offering essential health benefits. They cannot deny coverage or charge higher due to an illness or medical condition and gender bias. It will make finding a suitable health plan easier. It will also provide an opportunity to compare plans based on price, benefits, quality, and other features.
One can also avail help regarding different health insurance choices in Health Insurance Marketplace through personal assistance, phone or website.

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