We all know that April is tax month. But here are a few health-related items that are important to know as you file your taxes for 2022.
Are premiums deductible? If you are self-employed, the health insurance premiums that you pay can be deducted as an Adjustment to Income on Schedule 1 of Form 1040. If you are not self-employed, you probably won’t be able to deduct your premiums. Those with very high medical expenses may qualify to include premiums as an itemized deduction.
Form 1095 – If you were enrolled in health coverage during 2022, you should have received Form 1095-A, 1095-B or 1095-C. The form you receive is based on the source of your health insurance; did you have an individual policy or an employer group plan. The form verifies that you had health insurance coverage. If your insurance was through the Health Insurance Marketplace, Form 1095 includes the amount of Premium Tax Credit that you used during 2022. This information is used to determine whether you used more or less than you are eligible to receive. Give this form to your tax preparer.
HSA contributions – If your policy in 2022 was a high deductible health plan, you can contribute to a Health Savings Account until the tax filing due date – April 18, 2023. You can make contributions for the previous tax year. Your contribution is deductible as an Adjustment to Income on Schedule 1 of Form 1040.
|Maximum HSA Contribution||2022 Annual Contribution||2023 Annual Contribution|
|Catch-up contributionfor those over age 55||$1,000||$1,000|
What is best way to pay for Dental & Vision Insurance?
We can pay for our dental & vision care with an insurance plan, a discount plan offered by our provider, or by paying out-of-pocket for everything. There are lots of statistics showing that a person is more likely to have regular checkups for their teeth and eyes if they have insurance that helps cover the cost. They are less likely to go if they are concerned about having a sizeable bill to pay.
When evaluating a dental or vision plan, find out the value of the benefits you will receive in comparison to the premium you will pay. For dental plans, you should expect to pay a premium that covers the value of preventive care plus an allowance for other services that you might need. Compare the premium on your vision plan to what your out-of-pocket expense would be for your eye exam plus the percentage of the cost of glasses or contacts that the plan will pay. Call ComPro if you would like to know more about dental or vision insurance.
ComPro offers health insurance plans for Employee Benefits, Individuals and Medicare.They are your trusted and local resource for health insurance! To make an appointment with one of their licensed insurance agents, call (402) 488-5100. For more info, visit www.comproins.com.
By Chris McPike – Individual & Senior Benefits Manager, Agent