Health insurance premium question

[darnabeel]

I'm self employed (receive a 1099) and understand my health insurance premiums I pay are deductible on my tax return.

 

My question is the following: Should I pay for my health insurance premiums from the personal side or from my business bank account?

 

Thanks!

[jfoxcpacfp]

darnabeel wrote:

I’m self employed (receive a 1099) and understand my health insurance premiums I pay are deductible on my tax return.

My question is the following: Should I pay for my health insurance premiums from the personal side or from my business bank account?

Thanks!

Click to expand...

It really doesn't matter. Since, presumably, you are keeping a set of books for your business, it will be easier for your CPA to keep up with if you pay from your business account.

[csciora]

Health insurance payments are taken from my personal account and reimbursed from the business. Not my preference, but there was a weird restriction on the business directly paying premiums under Colorado law. Some odd combination of coverage, the plan, entity type (don't remember the details anymore) which prevented the insurance company from automatically debiting the business account. Reimbursements were easier than writing a check every month.

You don't get much of a break on medical / dental expenses on your personal taxes though. I've always had an entity (usually several of them) and specifically converted one to a C corporation to put a MERP (Medical Expense Reimbursement Plan) in place. Pretty much 100% medical, dental and health services for the entire family are fully deductible which is fantastic fringe benefit. We never have to pull money out of the HSA for medical expenses anymore.