For small-business owners, properly structured medical plans can be powerful deduction tools. Reviewing your health reimbursement options can help maximize deductions before year-end.
Reimburse Section 105 Expenses before December 31
If you have a Section 105 Health Reimbursement Arrangement (HRA) for your spouse-employee, ensure that all reimbursements are completed before year-end so your family’s medical expenses qualify for a 2025 deduction.Consider a QSEHRA or an ICHRA Health Reimbursement Options
- QSEHRA (Qualified Small Employer HRA): For businesses with fewer than 50 employees, reimburse up to $6,350 (individual) or $12,800 (family) tax-free.
- ICHRA (Individual Coverage HRA): Works for employers of any size, and reimburses employees for individual health insurance coverage.
S Corporation Owners
For you to qualify for the above-the-line deduction on your Form 1040, your S corporation must pay or reimburse your health insurance premiums and include them on your W-2.Small-Employer Health Insurance Credit
If you cover at least half the cost of employee health insurance, you may qualify for a 50 percent tax credit for up to two consecutive years—another reason to review your benefits before December 31.How We Can Help
Sterling Tax and Accounting is here to help your business with tax planning! Our comprehensive approach to tax planning helps reduce your overall tax liability and keep more money in your pocket. If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.
Learn how to proactively save on taxes by scheduling a call with our tax planning specialists. Our tax planning, accounting & business services help you stay on track. Sterling Tax & Accounting will work with you to optimize your business and minimize your taxes. We will work to provide you and your business with the tools and resources you need to build a solid tax and business foundation. We’re a trusted CPA Firm in Sarasota, Florida. We serve clients all over the US, and proactively work to minimize their taxes. Welcome to the Sterling Standard of business! Want to learn more? Schedule a meeting with our tax planning team here: https://www.sterling.cpa/contact-us/