The US Tax Code can be pretty rough on the self-employed. The rules and paperwork can be pretty confusing, even with the help of an accountant.

One tax provision is clearly worth the trouble: a Section 105 Medical Reimbursement Plan. You can save, literally, thousands of dollars a year. You must be married and meet some other requirements in order to qualify. The benefits are huge: you can deduct 100% of your family health insurance premiums and uninsured medical and dental expenses — and save a huge chunk in federal, state, and self-employment taxes!

I’ve been very impressed with the BizPlan Section 105 Medical Reimbursement Plan, offered by TASC (Total Administrative Services Corporation). Recommended by a colleague, TASC takes its obligations to customers very seriously, including offering a tax audit guarantee. The annual cost is very reasonable, starting at under $200.

You can’t deduct retroactively, so check out BizPlan today!

My friend Sandra Ries emailed the other day:

"I’m in the midst of my first collaboration and I’m in a bit of a quandary. We’re putting together a 1/2 day workshop with the idea that someone will hire us to deliver the same program for them in house and then do followup coaching with both of us. If not, they can hire one or the other of us for followup coaching.

"How do we do this? ‘We’ don’t have a business. Should I be his contractor? Should he be mine? Who do we tell people to write the check to? And how do we brand the marketing?"

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A new Small Business Administration study released today found that when the deductibility of health insurance premiums is increased, the survival of self employed businesses increases.

Well, duh!

Anything that puts dollars on the bottom line of a solo business is going to increase the odds of success. And they needed a study to confirm that? Jeesh.

Solo entrepreneurs (in the US) that can legitimately employ their spouse at least part-time can do even better — deduct their premiums AND medical expenses — through a tax “feature” known as section 105. Here’s a chance for little companies to finally get the breaks usually reserved for the “big boys”!

Tags: [medicalreimbursementplan],[self-employed],[taxes]