Finance
Is Health Insurance Deductible on Taxes?
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Is Health Insurance Deductible on Taxes?
Whether health insurance is deductible on taxes depends on how you purchase it. If you purchase it through your employer, you likely paid for it with pre-tax dollars, making it ineligible for year-end deductions.
If you are self-employed, however, you can deduct health insurance premiums if your health insurance expenses exceed 7.5% of your adjusted gross income (AGI).
Medicare premiums aren’t tax-deductible
While Medicare premiums are generally tax-deductible, they are not pre-tax, meaning they are not deducted from your paycheck before it is taxed.
Consider an example: if an employee pays $250 a month for their employer-sponsored health insurance, they would pay $250 in taxes and not receive a deduction. But if that same employee earned $4,500, they could deduct $250 from their taxes if they paid the full amount in 2017.
The IRS does allow self-employed people to deduct Medicare premiums from their taxes, assuming they are profitably self-employed.
Self-employed individuals can be a sole proprietor, partner, limited liability company shareholder, or S corporation shareholder, and can own at least 2% of the company’s stock.
Self-employed people can deduct their Medicare premiums as itemized deductions, but the deductions don’t reduce their AGI. However, double-dipping is never allowed when it comes to taxes.
Despite this, there are some exceptions.
Premiums paid through a credit card are deductible only if they are paid during the year of the charge.
Premiums paid by a non-filing relative, or those reimbursed by their insurance provider, are not tax-deductible. However, flexible spending accounts are considered pre-tax.
In certain circumstances, you can deduct premiums for Medicare Part B from your taxes.
Group health insurance premiums are
When your employees are covered by a group health insurance plan, the employer pays the premiums, but the employee pays a portion of the premiums. Both the employer and the employee are eligible for tax deductions.
This tax benefit is different from individual health insurance, where the employee pays the entire premium.
Employee health insurance is a fringe benefit and has no dollar limit. Whether or not your employees are covered depends on the circumstances.
Depending on your state’s law, small businesses may be exempt from these requirements. However, even small businesses can qualify for a tax credit when they purchase group health insurance through the SHOP marketplace.
This tax credit allows small businesses to pay premiums with pre-tax dollars, reducing their payroll taxes. It’s important to understand all your tax options before you purchase health insurance.
Here are some examples of how your small business can benefit from this tax benefit:
You can deduct medical premiums on your tax return if your group offers coverage that allows you to use your employer’s health insurance plan.
Premiums paid for the plan by federal employees may be exempted if they are part of a premium conversion plan.
You can also deduct the entire premium as a medical expense if you qualify for an advance premium tax credit. If you receive $300 in APTC, you can deduct $200 of your premiums from your taxes.
The difference between the amount you receive from your APTC and your tax deduction is deducted from your refund and added to your balance.
Self-employed individuals can deduct health insurance premiums
In 1987, Congress introduced a new tax break that allowed self-employed individuals to deduct health insurance premiums. This tax break was made permanent in 1994 and, starting in 2003, became 100% deductible.
The deduction can be claimed on Schedule 1 of a self-employed individual’s personal income tax return. Self-employed health insurance premiums are deductible in proportion to the business owner’s adjusted gross income (AGI).
The deduction is limited to 75% of a self-employed taxpayer’s taxable income, but any expenses incurred for medical care are deductible.
Generally, self-employed people can deduct health insurance premiums they pay for themselves and their dependents.
In addition to health insurance premiums for themselves, self-employed individuals can also deduct the premiums for dependents, spouses, and children under 27.
This tax break can mean more money for you. However, many self-employed individuals are unsure of how the health insurance deduction works. Here are the details you need to know.
The IRS considers self-employed people to be self-employed if they report health insurance premiums as part of their business income on Schedule C or F.
This deduction is also available to limited partners and shareholders of S corporations.
If you work as a sole proprietor or are a limited partner, you must report your S corporation’s wages on your Form W-2.
Health insurance premiums paid by a spouse or non-dependent children are deductible, as long as you claim the expense as a business expense on your personal tax return.
Conclusion
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The Fascinating Universe of Collectible American Coins
Did you know gold has been a go-to for people wanting to diversify their investments and guard their income for centuries? Believe it or not, in today’s topsy-turvy economy, gold’s steady yields and proven durability are hot commodities for investors worldwide.
One of the trendiest ways to convert greenbacks into gold is by purchasing gold bars and coins.
Gold coins might be particularly tempting to investors due to their snazzy aesthetic and historical value–in addition to their monetary worth. But where to start–that’s the million dollar question? With so many gold coins out there, how do you decide what (and how) to bet on?
Golden Eagles Soaring High – American Gold Eagle Coins
Let’s dive in with the American Gold Eagle coins — a red-hot favorite and a well-known player in the gold coins market.
The U.S Mint whips up these 22-karat gold coins decorated with a Lady Liberty design on the obverse side, while the reverse side flaunts a bald eagle nesting or a bald eagle’s head, year-dependent.
And here’s what’s also interesting–you can claim these American Gold Eagle coins in various weights: 1 oz, 1/2 oz, 1/4 oz and 1/10 oz. The same goes for its ‘cousin’– the American eagle silver coin.
The Canadian Maple Leaf–Not Quiet American, but Close Enough
The 24-karat gold Canadian Gold Maple Leaf coin, sculpted by the Royal Canadian Mint, is an absolute stunner.
Hitting the ground in 1979, this golden wonder was in toe-to-toe competition with the South African Gold Krugerrand and is still regarded as one of the world’s purest and most coveted gold bullion coins.
The design? A maple leaf on the obverse side and an image of Queen Elizabeth II on the reverse.
What’s rad is that Canadian Gold Maple Leaf coins come in an array of weights, from 1/25 oz all the way up to 1 ounce.
Unleashing the Golden Buffalo – American Gold Buffalo Coins
Say hello to the American Gold Buffalo coin–another popular (and very favored)choice among investors and collectors alike.
The design is a tribute to the 1913 Buffalo Nickel conceived by renowned James Earle Fraser. You’ll see a Native American chief’s profile on the obverse side and an American buffalo on the reverse.
What’s fun to note is that American Gold Buffalo coins are 24 karats—higher purity than American Gold Eagle coins.
The Golden Wrap Up
Dropping some money into gold coins can be a savvy strategy to protect your overall investment bundle from losses and fend off inflation.
The coins discussed above are top-notch options for anyone keen on adding a dash of the shiny metal to their investment portfolio or who gets a kick out of curating a collection.
Always remember — before making any investment decision, do your legwork, contemplate your investment goals and risk tolerance, and seek advice from a financial guru for individualized guidance based on your unique financial situation. Good Luck!
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Academic researchers believe that students could be using essay writing solutions to attempt and boost their grades. (more…)
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Top 13 Richest Cities In The World By Number of Millionaires
We live in an era of rapid economic growth and prosperity. Many cities around the globe have become thriving hubs of wealth, attracting millionaires from various industries.
In this article, we will explore the top 13 richest cities in the world by the number of millionaires. By understanding these prosperous urban centers, we can glean valuable insights into the global economy and the distribution of wealth.
1. New York City, United States
New York City, often referred to as the Big Apple, is undoubtedly one of the wealthiest cities globally. With a high concentration of millionaires and billionaires, it is home to the world’s largest financial market, the New York Stock Exchange. The city’s vibrant economy is powered by diverse sectors, including finance, real estate, technology, and media.
Key Industries:
- Finance
- Real Estate
- Technology
- Media
2. Tokyo, Japan
The bustling capital of Japan, Tokyo is a hub of commerce and innovation. With its strong economy, the city has attracted numerous millionaires who have made their fortunes in various industries. Tokyo’s Stock Exchange is the third-largest in the world, contributing significantly to the city’s wealth.
Key Industries:
- Technology
- Manufacturing
- Finance
- Retail
3. London, United Kingdom
A global center for finance and culture, London is home to a large number of millionaires. Its status as a financial capital has attracted wealthy individuals in banking, hedge funds, and private equity. Additionally, the city’s thriving arts and cultural scene attracts high net worth individuals from around the world.
Key Industries:
- Finance
- Real Estate
- Arts and Culture
- Technology
4. San Francisco, United States
San Francisco and the surrounding Silicon Valley have become synonymous with technological innovation and entrepreneurship. The city’s thriving tech ecosystem has generated a significant number of millionaires and billionaires, thanks to the success of companies like Apple, Google, and Facebook.
Key Industries:
- Technology
- Venture Capital
- Biotechnology
- Green Energy
5. Hong Kong, China
Hong Kong, a Special Administrative Region of China, is a major financial hub in Asia. Its strategic location and business-friendly environment have made it a magnet for wealthy individuals in finance, real estate, and trade. The Hong Kong Stock Exchange is one of the largest and most active in the world.
Key Industries:
- Finance
- Real Estate
- Trade
- Retail
6. Sydney, Australia
As Australia’s most populous city, Sydney has a diverse and robust economy. The city’s natural beauty, high quality of life, and thriving business sectors have made it a popular destination for millionaires. Its key industries include finance, real estate, tourism, and technology.
Key Industries:
- Finance
- Real Estate
- Tourism
- Technology
7. Singapore
Singapore is a small island nation with a powerful and dynamic economy. Its strategic location as a global trade hub has attracted wealthy individuals from various industries. The city-state’s pro-business environment, excellent infrastructure, and high quality of life make it a top choice for millionaires.
Key Industries:
- Finance
- Trade
- Real Estate
- Technology
8. Zurich, Switzerland
Zurich is Switzerland’s largest city and a global center for banking and finance. Its stable economy, low tax rates, and renowned private banking sector have attracted a significant number of millionaires. The city is also home to major international corporations and a growing technology sector.
Key Industries:
- Finance
- Pharmaceuticals
- Technology
- Manufacturing
9. Los Angeles, United States
Los Angeles is a global entertainment hub, known primarily for its thriving film and television industry. As the home of Hollywood, the city has attracted numerous millionaires and billionaires involved in media, entertainment, and technology.
Los Angeles also has a strong presence in industries like aerospace, fashion, and tourism.
Key Industries:
- Entertainment
- Media
- Technology
- Aerospace
10. Mumbai, India
As India’s financial capital, Mumbai is home to the country’s largest corporations, stock exchanges, and banking institutions. The city’s growing economy has generated a significant number of millionaires, particularly in industries such as finance, real estate, and technology. Mumbai is also known for its thriving Bollywood film industry.
Key Industries:
- Finance
- Real Estate
- Technology
- Entertainment
11. Paris, France
Paris, the romantic capital of France, is not only known for its rich cultural heritage and history but also for its robust economy. As a major global financial center, Paris has attracted numerous millionaires who have made their fortunes in industries such as fashion, finance, luxury goods, and tourism.
Key Industries:
- Finance
- Fashion
- Luxury Goods
- Tourism
12. Toronto, Canada
Toronto is Canada’s largest city and economic powerhouse. The city’s thriving economy is driven by diverse industries, including finance, technology, and real estate. Toronto’s stock exchange is the largest in Canada and the ninth-largest in the world, contributing significantly to the city’s wealth.
Key Industries:
- Finance
- Real Estate
- Technology
- Life Sciences
13. Shanghai, China
As one of China’s most populous and prosperous cities, Shanghai has experienced rapid economic growth in recent decades. The city is a global financial hub and home to the Shanghai Stock Exchange, one of the world’s largest. Key industries in Shanghai include finance, real estate, and technology.
Key Industries:
- Finance
- Real Estate
- Technology
- Manufacturing
Conclusion
The top 13 richest cities in the world by the number of millionaires showcase the diversity and strength of the global economy.
From finance hubs like New York City and London to technology centers like San Francisco and Tokyo, these cities represent the pinnacle of wealth and success.
As the world continues to evolve, we can expect these urban centers to remain at the forefront of innovation, driving economic growth and prosperity.
Frequently Asked Questions (FAQs)
1. Which city has the most millionaires?
New York City currently has the highest number of millionaires, thanks to its strong economy and status as a global financial capital.
2. Which industries are most prevalent in these wealthy cities?
Key industries among these cities include finance, real estate, technology, and trade. However, each city has its unique mix of thriving sectors, such as entertainment in Los Angeles and luxury goods in Paris.
3. What factors make a city attractive to millionaires?
Factors that attract millionaires to a city include a strong economy, business-friendly environment, high quality of life, and opportunities for investment and wealth creation. Additionally, cities with well-developed infrastructure, excellent healthcare, and education systems, as well as cultural and recreational opportunities, are also attractive to high net worth individuals.
4. How does the concentration of millionaires impact a city’s economy?
A high concentration of millionaires can contribute to a city’s economic growth by driving investments, creating job opportunities, and stimulating local businesses. Their wealth and spending can also contribute to the city’s tax revenue, helping to fund public services and infrastructure projects.
5. Are there any emerging cities that could make this list in the future?
Emerging cities like Dubai, United Arab Emirates; Bangalore, India; and São Paulo, Brazil have experienced rapid economic growth and are home to a growing number of millionaires. As these cities continue to develop, they could potentially join the ranks of the top 13 richest cities in the world.
6. Do these cities also have a high number of billionaires?
Yes, many of these cities also have a high concentration of billionaires. For example, New York City, San Francisco, and Hong Kong are known for their significant number of billionaires in addition to millionaires.
7. How do wealthy individuals contribute to a city’s cultural scene?
Wealthy individuals often invest in and support the arts, museums, and cultural institutions in their cities. They may also sponsor events, donate to charitable causes, and commission works of art, contributing to a vibrant and diverse cultural scene.
Fact Check
We hope you enjoyed reading this article. What are your thoughts on the topic?
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