{"id":3244,"date":"2019-10-17T22:50:20","date_gmt":"2019-10-17T22:50:20","guid":{"rendered":"http:\/\/www.www.idahoinsuranceagency.com\/?p=3244"},"modified":"2023-07-20T18:14:36","modified_gmt":"2023-07-20T18:14:36","slug":"3-more-tax-related-changes-for-your-healthcare-in-2016","status":"publish","type":"post","link":"https:\/\/www.idahoinsuranceagency.com\/3-more-tax-related-changes-for-your-healthcare-in-2016\/","title":{"rendered":"3 More Tax Related Changes for Your Healthcare in 2016"},"content":{"rendered":"
While 2016 may be many months away, it\u2019s not too soon to start planning now for your health coverage for the coming year. There\u2019s already buzz about double-digit increases in premiums in certain locations, but this isn\u2019t the only change coming. There are also changes in tax rules for healthcare in 2016.<\/p>\n
Here\u2019s what you need to know so you can start to plan now:<\/p>\n
3.\u00a0Health Savings Accounts<\/span><\/strong><\/p>\n You can provide health coverage for your staff at reduced cost if you use a health savings account (HSA). This combines a high-deductible health plan (HDHP) \u2014 a \u201cbronze\u201d plan on a government exchange or from a private insurer \u2014 with an IRA-like savings account. The definition of an HDHP is crafted annually by the IRS. Similarly, the deductible contribution limit for the savings part is also set by the IRS.<\/p>\n For 2016, to be an HDHP, the policy must have a minimum deductible of $1,300 for self-only coverage and $2,600 for family coverage. Also, the maximum out-of-pocket limit under a policy must be capped at $6,550 for self-only coverage and $13,100 for family coverage.<\/p>\n If you have such a policy, then you can contribute to an HSA. If the company contributes to an employee\u2019s account, the company gets the deduction. If the employee makes the contribution, the employee deducts it from gross income (no itemizing is required).<\/p>\n For 2016, the maximum deductible contribution amount to HSAs for 2016 is $3,350 for self-only coverage and $6,750 for family coverage. Those who are age 55 or older by year end can add an additional $1,000. Thus, if you and your spouse are both age 62 in 2016 and have an HDHP providing family coverage, your contribution limit is $8,750 ($6,750 + $1,000 +$1,000).<\/p>\n Find details about HSAs in\u00a0IRS Publication 969<\/a>\u00a0(PDF). The numbers haven\u2019t been updated, but the basic rules are unchanged.<\/p>\n 4. Small Employer Health Insurance Credit<\/span><\/strong><\/p>\n If you\u2019re a small employer who isn\u2019t required to provide health coverage you\u2019re encouraged to do so by means of a tax credit. You can reduce your tax bill dollar-for-dollar by half of the premiums you pay if you meet certain conditions:<\/p>\n 5.\u00a0Reporting Requirements<\/span><\/strong><\/p>\n Whether or not you\u2019re subject to the employer mandate, if you provide health coverage to employees in 2015, you have a new reporting requirement starting in 2016. By January 31, 2016, you\u2019ll have to furnish to employees Form 1095-B,\u00a0Health Coverage,<\/em>\u00a0as well as sending copies to the IRS by February 29, 2016 (March 31, 2016, if you transmit them electronically), to detail the 2015 coverage. Find details about this form in the\u00a0instructions to the form<\/a>\u00a0(PDF).<\/p>\n Conclusion<\/span><\/strong><\/p>\n The tax rules are complex and growing more so each year. Work with a knowledgeable tax advisor so you get things right.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" While 2016 may be many months away, it\u2019s not too soon to start planning now for your health coverage for the coming year. There\u2019s already buzz about double-digit increases in premiums in certain locations, but this isn\u2019t the only change coming. There are also changes in tax rules for healthcare in 2016. Here\u2019s what you […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[18],"tags":[],"yoast_head":"\n\n