Yo, fellow S-Corp ballers! If you’re looking to score big on tax savings, I’ve got the play-by-play on a strategy that’s like hitting a three-pointer at the buzzer. We’re talking about the health insurance “double dip” – a move so smooth, even the IRS gives it a nod. Here’s how you can glide through this strategy and dunk on those tax bills:
1. The Double Dip Swish: Picture this: you’re on the court, and you’ve got a chance to score twice with one shot. That’s what S-Corp owners can do with health insurance premiums – save on income taxes and then again on FICA taxes. Talk about a game-changer!
2. IRS High-Five: This isn’t some sneaky move; it’s straight-up endorsed by the IRS. They’re basically setting you up for an assist, encouraging smart plays with your health insurance costs.
3. W-2 is Your MVP: To make this play, your health insurance premiums need to be part of your W-2 lineup. It’s crucial for making sure your premiums are in the right tax position.
4. FICA Tax Breakaway: By including these premiums in your W-2, you’re breaking away from FICA taxes, which means more savings in your pocket.
5. Steer Clear of Fouls: Missing the mark on how you deduct health insurance premiums can draw the wrong kind of attention from the IRS. Keep it clean to avoid audits.
6. Open to All, But Watch the Playbook: Every S-Corp owner has a shot at this, but there are rules and exceptions to navigate to make sure you’re in bounds.
7. Team Coverage Slam Dunk: This strategy isn’t just for you; it covers your spouse and kids under your plan, multiplying the savings.
8. Benchwarmers: If you’ve got another health insurance play through another employer (like your spouse’s game plan), you might be sitting this one out.
9. Last-Minute Layups: Forgot to include premiums in your payroll? There’s still time for a catch-up adjustment within the tax year, so you don’t miss those savings.
10. Consistent Game Plan: To keep the scoreboard ticking in your favor, include health insurance premiums in each paycheck for accurate W-2 reporting.
Key Takeaways:
- Score dual tax benefits: income tax deductions and FICA tax savings.
- MVP move: accurate W-2 reporting of health insurance premiums.
- Check your eligibility playbook, especially if there’s another health insurance option in play.
- Don’t miss out on retroactive adjustments for a full-court press on savings.
- Keep your premiums in the payroll lineup for maximum tax savings and compliance.
By running with this strategy, S-Corp owners can enjoy major tax wins, making it a key play in your tax planning game. For a personalized game plan and to ensure you’re maximizing those tax victories, consider teaming up with a pro like Chery CPA PLLC. We’re here to coach you through these opportunities and help you slam dunk your financial success.
#SCorpOwners 👔 #HealthInsuranceDeductions 🏥 #FICATaxSavings 💰 #IRSEndorsed ✅ #TaxCompliance 📚
