NASE Blogs

Deduct Your Health Costs With This NASE Benefit

Sep 30, 2009

Posted by Maureen Petron -- I have an NASE benefit that I need to make sure you know about. It’s not glamorous, it’s not sexy, and it’s not even particularly that fun.

But it can save you up to $3,500 a year in taxes.

That’ll get your attention, won’t it?

It’s the NASE HRA 105 benefit. HRA stands for health reimbursement arrangement and it allows you to deduct qualified medical expenses from your federal, state and local taxable income as well as from net earnings from self-employment.

Here’s how it works, in a nutshell. Your small business adopts an HRA plan to reimburse medical costs for its employees. If you hire your spouse to work in the business with you, and your spouse incurs a medical cost, the company can reimburse that cost. It’s fully deductible for the business, and not taxable income for the employee.

Use this sample chart to calculate your savings.

What’s the catch?

Well, there isn’t one. The plan must be non-discriminatory and in writing. And that’s where the NASE benefit comes in. With the NASE HRA 105 benefit, the plan administration and documentation is created absolutely free for your business. Just answer a few questions, and we’ll create documents customized to your business.

Here’s what you need to do:
1. If you’re an NASE Gold, Silver, Premier or Access member, log in with your Web account in the upper right hand corner of this page.
2. Type in the Quick Link “105” or click here to go to the benefit description
3. Click on the green button to “Apply for NASE HRA 105”

It’s as easy as that!

NASE HRA 105 sample calculation, and to print out the sample calculations chart. If you have quesitons about the HRA program, ask NASE TaxTalk about how your business can benefit.

 

Complete the no-obligation, online application today and start saving!