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This is a little more complicated now with the penalties, but I don't think it's not a direct correlation. i.e. if I pay $3000 in premiums I don't necessarily lower my taxes by $3000. I just tried to delete the 1095 form from my 2015 return but of course that adds penalties so it's hard to see. There was only a $1000 difference in my total tax though, which was about 1/3 of my total premiums.
Also, I think I used to be able to deduct my premiums on Schedule C but that has changed too. I put them in and the software boots it over to another portion of the return. I'm not at a machine where I can bring up my old returns so don't quote me on that lol
I can't imagine the luxury of a $400 deductible!!
I realize it is not a dollar for dollar deduction, however if your premiums are reduced by $1000, that is still a significant savings and your $250/month premium now is $166/month....using your example.
You really have it made. I cannot imagine the luxury of not paying premiums.
To be fair, I do pay union dues and some people try to equate dues to a premium, but there are some differences.
About $45 in monthly dues, and working assessments that are automatically drawn out of my check that equate to roughly $200 if I work 40 hour a week all month. So let's round it up to $250 in dues.
The more I work, the more assessments (AKA "working dues") are drawn out because it's 4% of my wage. Lower wage workers pay about 2.5% of their wages in assessments.
It is not the same as a premium though, because even if I were be laid off for an entire month (I've been laid off for a total of 4 weeks spread out over 4 years), then my dues for that month would only be the monthly membership dues of $45, my coverage is not affected in any way.
It's also not the same as a premium because I have added my spouse, then our first child, then our second child and my dues do not go up.
Nothing is free though, right?
We have given up raises to maintain this very good coverage, and being in a trade that carries risk of injury and death, and having a family, most members believe it is worth it.
I wish more people had access to plans like we have, it really bothers me when I hear of good people struggling to maintain even high deductible plans.
I realize it is not a dollar for dollar deduction, however if your premiums are reduced by $1000, that is still a significant savings and your $250/month premium now is $166/month....using your example.
Except too bad my premiums weren't $250! lol I just tossed the $3000 figure out there because it was a nice round number.
Anyway, glad to know I passed Accounting 101. I don't always so was hesitant so say anything. Thanks!
Except too bad my premiums weren't $250! lol I just tossed the $3000 figure out there because it was a nice round number.
Anyway, glad to know I passed Accounting 101. I don't always so was hesitant so say anything. Thanks!
I know you were just tossing out a number, but there are many business owners here that fail to report that tax savings and complain endlessly how much they pay, but never include that reduction for the tax savings and I was just pointing that out.
Also, the business owners keep looking at these premiums as a personal expense and not a business expense and then come here and complain that the w-2 workers get such a break because their employer pays so much of the premium---well, look at your premiums the same way and it works out to be the same thing....not to mention all of the other deductions that you get that w-2 employees do NOT get....
Marginal tax rates (15%/25%) determine tax savings on health insurance premiums for those not covered by their employer. Essentially, a $1,600/mo. premium (my dil's employer cost) can become, adjusting for tax savings, $1,360 or $1,200 - essentially a 15% or 25% reduction. Usually nowhere near an employer subsidy for similar coverage, as evidenced by dil's premium of $500. Her employer is subsidizing 69% - a far cry from a tax savings of 15% or 25%.
Marginal tax rates (15%/25%) determine tax savings on health insurance premiums for those not covered by their employer. Essentially, a $1,600/mo. premium (my dil's employer cost) can become, adjusting for tax savings, $1,360 or $1,200 - essentially a 15% or 25% reduction. Usually nowhere near an employer subsidy for similar coverage, as evidenced by dil's premium of $500. Her employer is subsidizing 69% - a far cry from a tax savings of 15% or 25%.
By the way, the 4.5 months wait for non-urgent care, is an outlier, not an average figure.
It's the time-limit when fines start kicking in to the providers.
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I don't always so was hesitant so say anything. Thanks! 
