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

  • Electing to Expense the Cost of Your Business Assets

    Section 179 deduction limits increase

    The IRS allows taxpayers the option of either depreciating some assets over a specified number of years or deducting all or a portion of the cost in one year. The expense election, commonly referred to as the Section 179 deduction, is made in the year the asset is placed in service. The benefit is a large deduction in the current year that is not reduced even if the asset is placed in service late in the tax year.

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Small Business Quick Tip

  • Like Kind Exchange

    If you are disposing of property used in your business, you may want to consider a like-kind exchange to defer the taxable gain on the sale.
Monday, 17th June 2019
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Tax Tips Personal

  • Money for College

    Are scholarships taxable?

    Many college students receive scholarships or fellowships to help pay for their education. If you are in college and received a scholarship or fellowship grant, there are a few key points to keep in mind. Qualified scholarships and fellowships are treated as tax-free and not included in taxable income if all of the following conditions are met:

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Personal Quick Tip

  • Qualified Tuition Plan

    It doesn't appear that a college education will get cheaper any time soon. Look into establishing a qualified tuition plan for your children. The earnings in the account grow tax-free. As long as the funds are spent on qualified education expenses, there are no tax consequences. Plus, there may be an added tax benefit at your state level.