do I have to do legal stuff to take advantage of certain tax deductions?
I am currently a contractor and will file a schedule c with my taxes. Next summer I am going to quit my day job in order to home school my daughter. ...
I am currently a contractor and will file a schedule c with my taxes. Next summer I am going to quit my day job in order to home school my daughter. I will only be working part time but would like to purchase medical insurance and look into tax deductable options for medical expenses, something similar to a section 125 that employers offer. What do I need to do to get these kinds of deductions/options
Dear T: The 125 or cafeteria plan is only available through an employer. Remember this plan is a use it or lose it plan.
Remember medical deductions only qualify if they exceed 7.5% of your income, so you will have a restriction on Sch A.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent