If your business was forced to close due to the pandemic, you may be itching to get back in the game. Or maybe you’re looking to fulfill a lifelong dream of running a business for the first time. In any event, there’s been a recent increase in the number of people starting small businesses.
Uncle Sam encourages entrepreneurship by offering various federal income tax breaks for self-employed individuals. Health insurance is one example.
Years ago, self-employed individuals couldn’t deduct the full amount of their health insurance premiums, like corporate entities could. But the playing field has been leveled.
For 2021, you might be able to write off all your health insurance premiums if the business generates ample profit. This deduction is claimed “above the line” on your personal tax return. So, it reduces your adjusted gross income for other tax purposes. It applies to premiums for health, dental and long-term care insurance incurred for yourself, your spouse and dependents under age 27.
This is just one example of a valuable tax break available to self-employed individuals. There are many more, but some tax-saving strategies require forethought. Contact our tax experts to plan for the 2021 tax year at 315.424.1120 or firstname.lastname@example.org.
Grossman St. Amour CPAs provides businesses and individuals with accounting, audit, taxation, business planning and valuation, financial planning, investment consulting, and fraud examination and deterrence services. For more information about how Grossman St. Amour CPAs PLLC can be of service to you, contact our professionals.