Tax savings for health care costs

Beginning in 2007, retired public safety officers, or those who have separated from service due to disability, get a tax break for health care costs. If you are a retired public safety officer,

such as a policeman, fireman, member of a rescue squad or ambulance crew, a member of a volunteer fire department, or a chaplain of a volunteer fire department, you may be eligible to exclude from income distributions from your governmental retirement plan that are used to pay health insurance premiums.

The exclusion is limited to the lesser of your actual health insurance premiums, or $3,000. The payment of the health insurance premiums must be made directly to the provider of the health insurance plan. The exclusion will not apply if the premiums are paid by you then reimbursed by the pension plan. This exclusion applies to distributions from governmental defined benefit plans or defined contribution plans, governmental 403(b) tax-sheltered annuity plans, and governmental 457(b) eligible deferred compensation plans.

Tax Tips Small Business

  • Employers of Tipped Employees Allowed a Tax Credit

    Are you getting the credit you deserve?

    If you are an employer in the food and beverage industry, you may be entitled to a tax credit for the social security and Medicare taxes you pay on your employees' tip income. You must meet both of the following requirements to qualify for the credit:

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Small Business Quick Tip

  • DOT Hours of Service

    Truck drivers and other employees who are subject to the Department of Transportation's "hours of service" rules are allowed to deduct 80 percent of their meals in 2016. In lieu of using actual expenses for meals and incidental expenses, you can deduct the federal rate of $63 per day.
Thursday, 17th January 2019
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Tax Tips Personal

  • Saving for Your Retirement

    Certain taxpayers are eligible for a tax credit

    If your adjusted gross income is less than $50,000, you may be eligible for a nonrefundable credit against your income tax for elective contributions you make to §401 (k) plans,

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Personal Quick Tip

  • Tuition Deduction

    If you paid qualifying tuition and related expenses in 2016, you may be able to deduct up to $4,000 of the costs or qualify for a tax credit.