Many within the population of the country are of the belief that the affordable care act that was passed in March 2010 is going to be a debacle that will take a great effort to take apart. Yet, at the same time, there are a few self employed health insurance opportunities that were also written into the initial bill. The specific requirements regarding eligibility to take the deduction are simple and precise, that you as the independent contractor must follow to the letter. Of course, the first and most important aspect to qualify means that you must show proof that you are the sole owner of the business and you are claiming the health insurance deduction.
There are two ways to prove you are the proprietor of the independent business. One way is through the self-employment income that can easily be established through bank statements with your name and the name of the business imprinted. In the case of the shareholder, all wages that are subject to the deduction of payroll taxes must also be included. However, one of the major features deals with anyone who is under the age of twenty-six. All employers holding an affordable health insurance policy with the addition of individuals under the age of twenty-six are eligible to deduct the cost of the additional health insurance annual premiums. This is a major change because this was never permitted before the passage of the affordable care act.
Of course this does not exclude the deduction for your own children. It is new that you can deduct the cost of a self employed health insurance policy when the children under twenty-six that you are claiming are not your own children. This is welcomed throughout the independent contractor community because this will serve as a major savings. However, you must be certain that the individual you are making the deduction is not being deducted by any other part-time employer. At the present time, this is only a one-time deduction and there is no word yet that this benefit is extended into the future years.
Another interesting point to make note is the fact that the rules have been adjusted in the case of the Medicare Part B Annual health insurance policies. This particular part of the affordable care act has not been widely discussed, but that does not mean it does not exist. The Medicare Part B health insurance premiums are now permitted to be counted as a deduction on the tax forms submitted by the independent contractors, small business owner operators and others that can show proof they are the proprietor of the business for more than one year.
Although this will help to make the affordable health insurance policy even more affordable, there are still specific guidelines that need to be followed before the deduction is permitted. The first and most important aspect of deducting the Medicare Part B annual health insurance premium is for the proprietor to show proof they are sixty-five years or older. In the case of a spouse who participates in the business, the annual health insurance deduction doubles.
