Section 105/Healthcare.gov

[MissAnn]

Not sure if I even know how to ask this question.
With section 105 and being able to deduct medical expenses and insurance as a business expense, we will qualify for the healthcare.gov tax credit. Without it I would say is risky. We might go over on our income.

So, If we qualify for it based on our section 105 deductions....do we still get the tax credit? This is my thinking....with the tax credit, we didn't really pay our insurance (or at least get reimbursed at the end of the year).....so it seems like we shouldn't be able to deduct our premiums but maybe we can deduct our medical expenses.

Does this make sense, because I can't make it make sense in my head.

Tom.....help! And thank you!

[TomCopeland]

Originally Posted by MissAnn

Not sure if I even know how to ask this question.
With section 105 and being able to deduct medical expenses and insurance as a business expense, we will qualify for the healthcare.gov tax credit. Without it I would say is risky. We might go over on our income.

So, If we qualify for it based on our section 105 deductions....do we still get the tax credit? This is my thinking....with the tax credit, we didn't really pay our insurance (or at least get reimbursed at the end of the year).....so it seems like we shouldn't be able to deduct our premiums but maybe we can deduct our medical expenses.

Does this make sense, because I can't make it make sense in my head.

Tom.....help! And thank you!

That's a good question! Does the fact that the tax credit reduces your insurance premiums mean that you can't deduct the full insurance premium through a Section 105 plan? I don't know. Ask the company that carries the Section 105 plan. TASC is the largest company offering such plans and they will know the answer: https://www.tasconline.com/

[MissAnn]

Originally Posted by TomCopeland

That's a good question! Does the fact that the tax credit reduces your insurance premiums mean that you can't deduct the full insurance premium through a Section 105 plan? I don't know. Ask the company that carries the Section 105 plan. TASC is the largest company offering such plans and they will know the answer: https://www.tasconline.com/

Thank you! I am working with tasc so I will call them tomorrow.