Simplify Your Taxes and Insurance in One Place
TAX SAVING
Tax Savings with TurboTax and Insurance
Understanding taxes can be complicated, especially when it comes to understanding how insurance affects your tax situation. Fortunately, TurboTax simplifies the process, helping you make the most of your insurance-related deductions and credits.
Whether you’re self-employed, saving for healthcare, or dealing with insurance payments, TurboTax is there to guide you every step of the way.
What You Need To Know About TurboTax & the Premium Tax Credit?
Here’s everything you need to know about the Premium Tax Credit and how TurboTax can assist you in claiming it:
- Subsidies to reduce health insurance costs for ACA Marketplace plans..
- Determined based on your income, family size, and insurance costs.
- Available if your income is between 100%-400% of the federal poverty level.
- Helps lower monthly premiums or increase your tax refund.
- TurboTax automatically calculates eligibility and claims the credit for you.
- Ensures accurate matching if you received an advance payment.
How TurboTax Helps with Insurance-Related Deductions?
TurboTax simplifies the process of claiming insurance-related tax deductions by identifying eligible expenses, preparing necessary forms, and ensuring accuracy to maximize your tax savings.
- Identifies deductible insurance premiums (e.g., health, long-term care).
- Calculates self-employed health insurance deductions.
- Tracks HSA contributions and ensures tax-free withdrawals.
- Calculates medical expense deductions in excess of IRS limits.
- Reconciles ACA premium tax credits for accurate reporting
- Prepares required forms such as Schedule A and Form 8962.
What are Health Savings Accounts (HSAs) and how do they affect my taxes?
A health savings account (HSA) is a tax-advantaged savings account designed to help you pay for qualified medical expenses. It offers several tax benefits that can reduce your overall tax liability:
- HSAs are tax-advantaged savings accounts for medical expenses.
- Contributions are tax-deductible, which reduces taxable income.
- Earnings in the account grow tax-free.
- Withdrawals for qualified medical expenses are not taxed.
- Unused funds carry over each year and remain with you even if you change jobs.
- After age 65, funds can be withdrawn for non-medical use (taxable but no penalty).