Self-Employed
Who will pay your bills if you have a serious accident
or a major illness? You need to buy health insurance for the same reason you
buy other kinds of insurance, to protect yourself and your family financially.
Although you cannot predict your medical bills, you can be prepared for very
high ones should you become ill or injured.
Tax Advantages to Purchasing Health Insurance
Purchasing health insurance has significant tax
savings for you and your family. Self-employed persons may deduct 100% of the
cost of their health insurance premiums from their adjusted gross income. This
includes:
- Federal income tax savings (at the individual's tax
bracket)
- 15.3% FICA tax savings
- State income tax equivalent to the individual's
state income tax bracket
Finding a Health Plan and Policy That Meet Your
Needs
The process for selecting a health insurance plan can
feel overwhelming. These four steps will help you organize your health
insurance planning, research, and purchasing processes.
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