Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

I just transitioned to an agency temp position and will be…

Customer Question
I just transitioned to...

I just transitioned to an agency temp position and will be paying for my ow insurance. Will I be able to claim tax credits for the insurance premiums I will be paying? As for 401k, how can I make pre-tax payments if my employer does not offer the option?

Submitted: 8 months ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Customer reply replied 8 months ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer reply replied 8 months ago
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Answered in 10 minutes by:
10/3/2017
Financial Professional: emc011075, Tax adviser replied 8 months ago
emc011075
emc011075, Tax adviser
Category: Finance
Satisfied Customers: 3,776
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

HI. My name is ***** ***** I will be happy to help you.

As long as you purchase an insurance through insurance marketplace (Obamacare - healthcare.gov or your state marketplace) you can claim the credit. You cannot claim a credit for insurance purchased on the open market.

As for 401K, if your employer does not offer it you cannot contribute to it. 401K is an employer sponsored plan - a fringe benefits. You can contribute up to 5500 (6500 if you are 50+) to traditioanl or Roth IRA.

How are you being compensated? Does the agency take out any Social security or Medicare taxes from your paycheck (employee) or you are getting a straight check (independent contractor)?

Ask Your Own Finance Question
Customer reply replied 8 months ago
I am being compensated hourly by an agency who will be deducting federal and CA taxes. I'm not sure but I believe they should be taking social security and medicare taxes as well.By "claiming the credit", does that mean that my taxable income decreases? Is there a limit?If I contribute to a traditional or Roth IRA post-tax, will I be able to claim the credits when I file taxes?
Financial Professional: emc011075, Tax adviser replied 8 months ago

A credit is not a deduction. A deduction reduces taxable income, a credit reduces tax liability (percentage of tax based on taxable income). The advance premium tax credit reduces your monthly insurance premiums. If you sign up for a qualified plan and qualify for credit, your monthly premiums are reduced by the eligible credit. When you file your taxes you will reconcile the credit on your tax return. You may be due additional credit, or, if you underestimated your income, you may have to repay some of the credit in the form of additional tax. Contributions to traditional IRA reduce your taxable income but Roth IRA contributions are not deductible.

Ask Your Own Finance Question
Customer reply replied 8 months ago
if I understand correctly, health insurance premiums are not deductible, I might only qualify for credits?For traditional IRA, can I claim the deductions when I file taxes even if I had contributed post-tax month-by month?
Customer reply replied 8 months ago
Also, does the same apply if I open my own HSA? If I contribute post-tax now, can I claim deductions when I file taxes?
Financial Professional: emc011075, Tax adviser replied 8 months ago

Insurance premiums are deductible, in theory. Only very small percentage of people can actually deduct the insurance premiums because of the 10% AGI and itemized deduction limit. You would have to be self-employed to take above the line deduction (deduct it directly from your income).

If you have a high deductible insurance plan you can contribute to HSA. By deducting it on your tax return you will make the contribution pretax. The same apply to IRA. Any contributions made with after tax income will become pretax when you deduct it from your taxable income on your tax return.

Ask Your Own Finance Question
Financial Professional: emc011075, Tax adviser replied 8 months ago

High deductible plans have usually lower premiums. Even if the your premiums are more than 10% of your income, you still need more to itemize your deductions. Generally mortgage interest in combination with property taxes and state and local tax deduction will get you there.

Ask Your Own Finance Question
Was this answer helpful?
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2,609
2,609 Satisfied Customers
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Rakhi Vasavada is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
They say I make too much for Obama health insurance. I can't
they say I make too much for Obama health insurance. I can't afford alot. Where do I go for reasonable health ins. benefits? I am self employed… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,235 satisfied customers
I keep getting booted out of my health insurance plans. I
I keep getting booted out of my health insurance plans. I don't understand how this all works but I need to establish a health care plan. Somebody out there who can help me? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I have private health insurance and just had a baby. My
I have private health insurance and just had a baby. My premiums are too high to add her to my private insurance. My newborn did qualify for chips, will the chips be retroactive from the time she was … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Over 50 taxpayer made the following non-deductible IRA
Over 50 taxpayer made the following non-deductible IRA contributions which were immediately converted to Roth's.Mar 2016 $6500.00 for 2015 Contribution converted to ROTH March 2016 Mar 2016 $6500.00 f… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,041 satisfied customers
My health insurance only covers 90% here in california. Is
My health insurance only covers 90% here in california. Is there any "gap" insurance I can purchase? Is there any way to lock in long term health insurance rates to avoid an increase in health insuran… read more
Mr. Wilson
Mr. Wilson
Teacher
Master\u0027s Degree
200 satisfied customers
My mother doesn't have health insurance and can't wait to
My mother doesn't have health insurance and can't wait to apply for obamacare. What are affordable short term options?… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
840 satisfied customers
I have a question about the Health Insurance Premium Tax
I have a question about the Health Insurance Premium Tax Credit. I reported an estimated 40,000 income for 2017 with a total of 4 dependents. I also had an adjustment in October. Our premiums were sti… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,041 satisfied customers
What is the rule for residual health insurance as far who is
What is the rule for residual health insurance as far who is primary and who is secondary???I have BCBS. GA. From Obamacare since Jan 2015 I started a job Sep 2017 who offered insurance I was not able… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,235 satisfied customers
Does nonresidente need to have health insurance? Do they pay
does nonresidente need to have health insurance? Do they pay penalty for not having health insurance for 2017?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,361 satisfied customers
The money in Roth IRA is post tax. When we take the money
The money in Roth IRA is post tax. When we take the money out at retirement, we don't need to pay tax. However, does the distribution from Roth IRA accounted for as your income so that affecting your … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,361 satisfied customers
I am sole beneficiary (non-spouse) of a roth ira (the
Hello, I am sole beneficiary (non-spouse) of a roth ira (the designation was made with the account; ie, non-probate). It was my father's roth and he died in 2016. It is now dec 31 of the year after d.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,235 satisfied customers
Have a Traditional IRA and Roth IRA I contribute to. The
Have a Traditional IRA and Roth IRA I contribute to. The Traditional IRA my employer matches my contribution. Question, does this mean I am covered by a retirement plan at work? I am reviewing questio… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I have 2 Roth IRAs for my husband and I and we created an
I have 2 Roth IRAs for my husband and I and we created an LLC with professionally made up documents to own the LLC wiith our Roths. In the document it states we can buy and sell basically anything tha… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a self directed Roth IRA with TDAmeritrade, can I buy
Hello, I have a self directed Roth IRA with TDAmeritrade, can I buy and sell stocks without capitol gains, as long as I don't cash out or reinvest ?Thanks, Ken… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a roth ira account with a bank that i also invest
I have a roth ira account with a bank that i also invest money and buying stocks. I want to know if i can attach a credit card to that account so i can buy bigger quantity of stocks straight from cred… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Ministers Retirement Plan. How is a Roth IRA setup for the
Ministers Retirement Plan. How is a Roth IRA setup for the pastor? Want tax free future income. What would be the best vendor to setup this account. Is there such an account under 403?… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Recently, my stepdaughter inherited a roth Ira from her
Recently, my stepdaughter inherited a roth Ira from her mother, in the amount of $34000. Her Adjusted Gross Income for this year if expected to be $20000. If she takes a lump sum payout this year, can… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I have taken deep losses on my Roth IRA. Approximately 80%.
I have taken deep losses on my Roth IRA. Approximately 80%. I have read if I close the Roth IRA I can write off a portion of these losses. How does this work?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,296 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x