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Decoding Flexible Spending Arrangements(FSA) #USTaxation,#EnrolledAgent,#EAAspirant,#EACourse,#TaxUpdates,#TaxLaw LinkedIn Guide to Creating LinkedIn Ads LinkedIn Learning

Remember to empty out your flexible spending account (FSA)! If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. In many cases you have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period). A pre-tax contribution of $3,050 to a health FSA is permitted in 2023. This amount will be increasing to $3,200 in 2024. You save taxes in these accounts because you use pre-tax dollars to pay for medical expenses that might not be deductible. For example, expenses won’t be deductible if you don’t itemize deductions on your tax return. Even if you do itemize, medical expenses must exceed a certain percentage of your adjusted gross income in order to be deductible. Additionally, the amounts that you contribute to a health FSA aren’t subject to FICA taxes. #taxreturns #expenses #acccounting

Handling income tax returns for doctors is best left to tax professionals For medical professionals, it's essential to maintain certain documents: 1. Home Office Expenses: If you have a designated area at home for work, you can deduct some costs like utilities or rent for that space. 2. Health Insurance Costs: Deduct the expenses of health insurance for yourself, your spouse, and dependents. 3. Retirement Contributions: Money put into a retirement plan like an IRA or a solo 401(k) is deductible. 4. Practice Expenses: Deduct costs related to your medical practice, such as equipment, supplies, or professional fees. 5. Vehicle Expenses: Deduct mileage, gas, and other vehicle-related expenses if you use your car for work purposes. 6. Work-Related Travel: Expenses for business trips like conferences or seminars are deductible. 7. Professional Development: Deduct fees for licenses, certifications, or courses that enhance your medical practice. 8. Marketing Expenses: Money spent on promoting your medical practice can be deducted. 9. Interest and Fees: Deduct interest on business loans or fees related to financial transactions. 10. Professional Taxes and Licenses: The fees you pay for professional licenses or certain taxes can be deducted from your taxes. Keeping a record of these expenses can significantly reduce your tax burden, so it's advisable to maintain accurate records throughout the year. We can help you with taxes with our FREE Seminars. Check them out: https://lnkd.in/diaP7SjK #incometax #insurance #finance #personalfinance #doctor #healthcare #primefinancialservices 6119021RG_Nov2

Unlock Tax Savings: Healthcare Insurance Benefits for CA Employers Eligibility Criteria: - Employees: Under 25 full-time equivalents. - Wages: Average below $56,000. - Contribution: Minimum 50% of premium costs. Credit Amount: - Small Businesses: Up to 50% of premiums. - Tax-Exempt Employers: Up to 35%. - Duration: Two consecutive years. Claiming the Credit: - File IRS Form 8941 with your tax return. 2024 Tax Credit Example Assumptions: - 10 FTE employees, $50,000 average wage, $6,000 premium per employee, 50% employer contribution. Steps: - Total Contribution: $30,000 - Tax Credit: $15,000 - Net Cost: $15,000 - ROI: 50% Providing healthcare insurance can cut your net costs in half! Explore the savings for your business. #Taxes #Investing #Money #Entrepreneurship #Education #EnergyCredit

It’s not too late! To be strategic With contributions on certain accounts The 2023 contribution deadline for a Roth IRA is not December 31st, 2023 It’s actually the 2023 tax filing deadline (April 15th in 2024) You can contribute up to $6,500 if you’re under 50 years old in 2023 The amount goes up to $7,500 if you’re 50 or older The same goes for an HSA If you have access to one (through a qualifying high deductible healthcare plan) You have until the tax filing deadline to contribute In 2023, the contribution limit for self-only coverage is $3,850 The contribution limit for family coverage is $7,750 For those 55 and older, you can contribute an additional $1,000 For both the Roth & HSA, the contribution limits can change (both went up for 2024) There is a lot to keep track of with these accounts And this post is just scratching the surface You can either do your research and stay up to date each year Or work with someone like me who nerds out on this stuff and will do the work for you. Happy learning!

As an employer, you're always seeking ways to reduce expenses while still providing quality benefits to your hardworking team. The Essentials Health Plan (EHP) is here to help you accomplish both! By utilizing tax codes introduced by the Affordable Care Act in 2013, the EHP offers a innovative approach to healthcare benefits that can yield substantial tax savings for your organization. When you implement the EHP, you can anticipate: ✅ An average of $900 in FICA payroll tax savings per participating employee annually ✅ Immediate financial improvements to your bottom line ✅ Full ACA compliance, satisfying requirements for offering a Minimum Essential Coverage (MEC) Program These tax savings can swiftly add up. For example, if you have 50 employees enrolled in the EHP, your business could save approximately $45,000 each year on FICA payroll taxes alone! But the financial benefits don't end there. The EHP can also help reduce your Workers Comp costs by up to 30%. All of these cost-saving advantages come without the need to change your current insurance setup or require any investment on your part. Your employees will enjoy comprehensive coverage, including 24/7 Telehealth access, dental & vision, supplemental benefits, and more, without any reductions to their take-home pay. #EmployeeBenefits #TaxSavings #FICASavings #Section125 #AffordableCareAct #EssentialsHealthPlan #EmployeeBenefits #HealthcareBenefits #AffordableHealthcare #WorkforceBenefits #BenefitsPackage #EmployeeWellness #WorkplaceWellness #HealthyEmployees #HealthyWorkforce #EmployerHealthcare #TaxSavings #FICASavings #Section125 #AffordableCareAct #ACACompliance #ReduceHRCosts #CostEffectiveBenefits #InnovativeBenefits #HRSolutions

At PRIME Financial Services, we prioritize financial education and lead by sharing knowledge. We dedicate a lot of our time and resources to conducting financial education seminars at hospitals, universities, private practices, and various groups. My grandfather began this legacy over six decades ago, and the Prime Team is honored to carry it forward. On January 17th, from 5-6 PM EST, we are offering the first in a series of open seminars to all medical practitioners who have questions about finance and taxes. Please help us spread the word. During this seminar, we will cover: 1️⃣ Maximizing Deductions: We'll help you pinpoint deductions that are specifically relevant to doctors and healthcare experts and develop strategies to minimize your taxable income effectively. 2️⃣ Exploring Investment Opportunities: Understand the tax implications of various investment types, from stocks to real estate to retirement accounts, and discuss strategies to reduce taxes and enhance your returns. 3️⃣ Tax-Efficient Practice Management: Learn about the tax implications of hiring staff or growing your medical practice and gain practical advice for managing business expenses in compliance with tax laws. 4️⃣ Benefiting from Tax-Advantaged Savings Accounts: Discover how Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can lower your taxable income while providing benefits for medical expenses. Leaving the registration link in the first comment! #webinar #us #tax #taxes #finance #personalfinance #doctor #healthcare #primefinancialservices

Get in on the discussion about a guide to healthcare systems and controversial tax breaks with your friends at LT INVESTMENTS & CONSULTING via our new blog post. Just click below.

FRA Staff Discuss VA Budget Shortfall with VA DLP John Davis participated in a conference call with Department of Veterans Affairs (VA) budget staff regarding the budget shortfall noted in last week’s Newsbytes. The chief financial officers from the Veterans Benefits Administration (VBA) and Veterans Health Administration (VHA) informed the House Veterans Affairs Committee (HVAC) that they anticipate a $2.88 billion shortfall for the remainder of fiscal year (FY) 2024 related to compensation and pension and readjustment benefit payments, and an $11.97 billion shortfall in FY 2025 primarily related to increased hiring and pharmaceutical costs. This represents by far the largest budget shortfall the VA has experienced. VA staff noted that the shortfall was largely due to more benefits being paid to more veterans than anticipated. The VA staff assured FRA that the VA is in communication with Hill staff and White House staff to provide the VA with supplemental appropriations for the current fiscal year (FY 2024) and FY 2025. Without additional funding, benefits will be delayed as early as October 1, 2024. The VA claims that there has been a 39% increase in claims since FY 2022 and that 1.9 million claims have already been processed in FY 2024. In addition, VA staff has increased by 33% since October 2023. Other contributing factors to the budget shortfall include the implementation of the comprehensive veteran’s toxic exposure law (PACT Act), increased cost of drugs, and the recent U.S. Supreme Court decision (Rudisill v. McDonough) expanding education benefits noted in the May 3, 2024 Newsbytes. Read more @ bit.ly/3LGfXZq

Don’t miss out on any available tax benefits to help you care for your loved one without depleting your own funds. For specifics, we recommend speaking with a tax professional, but here are some points to consider: 1. Claiming Your Loved One as a Dependent: If you've provided more than half of your loved one’s support throughout the year—such as food, lodging, transportation, etc.—you may be able to claim them as a dependent. 2. HSA and FSA: Utilize a health savings account (HSA) or flexible spending account (FSA) through your benefits. These accounts help cover expenses not covered by insurance and are deducted from your gross income, reducing your taxable income. 3. Claiming Allowable Expenses: If your loved one qualifies as a dependent, you might be able to deduct expenses when filing your return. This includes transportation costs like cab fare, mileage, tolls, and parking for medical appointments. For personalized advice, consult a tax professional to ensure you're maximizing your tax benefits as a caregiver. #TaxBenefits #CaregiverTaxTips #FinancialSupport #CaregiverResources #TaxSeason #CaregiverSupport #HomewatchCareGivers