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Health Insurance Questions
Health insurance includes insurance coverage against any kind of loss due to an illness or injury. It covers a person’s medical bills, hospitalization bills; visits to the doctors, etc. People will be required to pay premiums towards the policy depending on the amount that they are covered for. Health policies can either be bought directly by the individual or provided by the employer. One may also list dependants on this insurance policy. There are various kinds of health insurance policies that cover an individual at various degrees. People may have questions about the different kinds of policies and payment options that are available to them. Given below are some of the most commonly asked questions that have been answered by Experts about health insurance policies
Does a person who is listed on their spouse’s insurance policy have to buy Medicaid on reaching the age of 65?
A person who is already listed on their spouse’s insurance may not have to purchase Medicaid when they reach the age of 65. Medicaid is usually meant for people with a low income and is a basic health care program. Although, if the person is already covered by an insurance plan, the individual may not require Medicaid.
Can insurance premiums be deducted when an individual files his/her tax returns?
Most of a person’s insurance premiums may be deductible as medical expenses. These expenses also include the amount that one may pay for doctor and dentist bills, money spent buying glasses or contact lenses, prescription money and hospital bills. However, one may be able to deduct these expenses only if they cross 7.5% of one’s adjusted gross income. A self employed individual may have to show that he/she has made a net profit for the year in order to deduct health insurance premiums from his/her tax returns.
Would long term health care insurance be helpful for people who are above the age of 60?
In most situations, long term health care insurance may be helpful for people who are 60 years or above. This may however, depend on what the cost of the nursing home is. Some insurance policies may even cover help provided at home. If the premium for the policy is unaffordable, the individual may make a few changes to the policy to reduce this amount. In addition to this, if the person has Medicare, then it would cover the first 100 days of the individual’s stay at a nursing home.
An individual’s minor child is covered on his/her health insurance. Would the child’s baby also be covered by this policy at its birth?
In most situations, the insurance cover for the minor’s baby may end at the delivery of the child. Only the mother of the baby, who is the minor daughter, may be covered once the child is born. If the individual wants insurance coverage for the baby as well, he/she may have to plan for this before the baby’s birth and take a separate policy for it.
What would happen if a person wrongly lists their daughter as a dependant on a health policy but she does not qualify as one?
Most of the times if a person lists their daughter wrongly on the insurance policy and the child does not qualify a dependant, the individual’s policy may be cancelled, the individual may be required to pay back the premium that was paid by the employer or he/she may be asked to pay a part of the premium for his/her child and allowed to keep the policy.
Life can be very unpredictable. You will never be able to say when you will be faced with a medical emergency. Most of the times these emergencies result in huge expenses in the form of medical bills and hospitalization charges. At such times, it can be very helpful it you have health insurance coverage. The insurance will cover most of your medical expenses and reduce the financial pressure on you. You may consult an Expert and get any of your queries answered before you take any decision about the policy.
Recent Health Insurance Questions
We have an LTD plan that is 100% employer paid premium for
We have an LTD plan that is 100% employer paid premium for a non-taxable benefit when/if an employee needs LTD benefits.
Is this premium FICA taxable and should it be shown on the W-2 as FICA?med wages??
Based on Pub 15 - fringe benefits, the premium is exempt from FICA/med. Can you confirm this.
Lane. Here is the 2nd question. It involves a health
Hi Lane. Here is the 2nd question. It involves a health savings account. I have an individual who became and shareholder of an S Corp in 2014. They had an HSA in place but when he became more than a 2% shareholder the HSA was no longer offered. Can the
individual have an individual HSA if their health insurance plan is through an S Corp and paid by the S Corp? Thanks again!!
My girlfriend and I live together, but are NOT married. We
My girlfriend and I live together, but are NOT married. We also keep almost all our financials separate, that's worth (i.e. the house is in only one person's name, our bank accounts are separate, etc).
I am currently unemployed after getting displaced from my previous job. My girlfriend is self-employed as a consultant -profit organizations (assisting with media relations, planning, training, etc.) - and operates as a single-entity LLC.
I do not plan on going back to work immediately.
My goal: To have net earnings of approximately $12,000 year, to qualify lowest cost health insurance coverage under Obama-care.
I live in Virginia, which is a state that did NOT expand its Medicaid program. So, if I don't show earnings of at least $11,670 -- I do not qualify of the reduced costs insurance.
I do have some minor sources of income. I'll earn a few thousand from dividends and interest. And I own a single family residence that is a rental property, which will net me another few thousand. But in the end, I'll have a gap to fill of around $4,000 in income to make sure I make it past the $11,670 threshold.
My question: Can my girlfriend pay me $4,000 (or whatever amount) her with her consulting work? She would show it as an expense on her taxes, so she wouldn't pay tax on that amount. But I would show it on my taxes as income, so I would pay whatever taxes were required. I do help her quite frequently, so it's not like the payment wouldn't be justified. And we aren't hiding the income, it would just be reported on my return instead of hers.
To me, this seems completely legit. But are there problems with it?
- Is it somehow illegal?
- Would I actually have to keep the $4,000 (), or could I give it back to her as a tax-free "gift" that seems to be allowed as long as it's under $14,000 per year.
- If this would work, and if it is completely legal, would I simply show the money as "other income" or would I need to include a Schedule C, and show it as Consulting Revenue, or something similar?
- And , would this cause her any additional issues with her taxes? Aside from showing an expense of $4,000 to basically a contract worker -- would she suddenly have any issues like having to pay social security taxes ? I would think not, since I wouldn't be an employee. Just someone that helps out from time to time, like a contract employee.
So bot***** *****ne -- A) Is there anything illegal or wrong about this scenario. If so, the other questions don't really matter. But if not, then B) What additional implications might pop up or cause problems her taxes or mine.
Sorry to be so long-winded, but was trying to provide as much information as possible.
Thank you in advance answer(s).
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