Insurance Tax Deductions

One day left until tax day. Remember that certain business insurance premiums are tax deductible. You can get additional help at the tax guidesite. If you need an extension, the form is online.

The IRS has been targeting the deductibility of health care payments for self-employed individuals. This is an area you may need professional help. According to the IRS, "owners" are not "employees" for many purposes. This includes the deductibility of certain health care payments. For Chapter S corporations, this generally means anyone with greater than a 2% ownership interest is an "owner" and not an "employee." However, their are many differing situations and rulings and you will want to speak with your tax professional.

One last point, remember that there is a tax rebate this year. Generally, it requires earned income and taxes paid in 2007. Long-term disability insurance payments may be considered "earned" income and the employee may be entitled to the rebate. Make sure any employees on long-term disability review their situation with their tax professional to determine if they are eligible.