Subscribe to Entrepreneur for $5
Subscribe

News & Reviews

Health Insurance Hoopla

By
This story appears in the September 1996 issue of Business Start-Ups magazine.

High cost of health insurance got your small-business budget in a bunch? AgriPlan/BizPlan, a tax reduction service based in Adel, Iowa, estimates that in 1995, 40,000 self-employed business owners each saved an additional $1,800 in taxes through a provision in the Internal Revenue tax code.

The deduction, under IRS Tax Code Section 105, applies to married, self-employed taxpayers who formally hire their spouses as employees. If your spouse receives a salary for services performed for your business--even if he or she holds another job elsewhere--you can deduct 100 percent of your family's health-insurance premiums and non-insured medical expenses.

Continue reading this article - and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.

Entrepreneur Editors' Picks