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Economic Indicators- Major Economic Indicators Latest NumbersConsumer Price Index (CPI): +0.2% in Jan 2010 News Release Historical Data Unemployment Rate: 9.7% in Jan 2010 News Release Historical Data Payroll Employment: -20,000(p) in Jan 2010 News Release Historical Data Average Hourly Earnings: +$0.04(p) in Jan 2010 News Release Historical Data Producer Price Index (PPI): +1.4%(p) in Jan 2010 News Release Historical […]
- Major Economic Indicators Latest Numbers
- Consumer News
- Economic Analysis
- U.S. International Trade in Goods and Services, December 2009The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total December exports of $142.7 billion and imports of $182.9 billion resulted in a goods and services deficit of $40.2 billion, up from $36.4 billion in November, revised. December exports were $4.6 billion more than November exports of […]
- U.S. International Trade in Goods and Services, December 2009
- Budget Office
- The Obama Administration’s Health Care ProposalThis morning the Obama Administration released a description of its health care proposal, and CBO has already received several requests to provide a cost estimate for that proposal. We had not previously received the proposal, and we have just begun the process of reviewing it—a process that will take some time, given the complexity of [...] […]
- The Obama Administration’s Health Care Proposal
- Economic Outlook
- H.R. 2847, Hiring Incentives to Restore Employment ActCost estimate for Senate Amendment 3310, as introduced in the nature of a substitute for H.R. 2847 on February 11, 2010. […]
- The Budget and Economic OutlookCBO Deputy Director Robert Sunshine's presentation to the Association of Government Accountants […]
- H.R. 4247, Preventing Harmful Restraint and Seclusion in Schools ActCost estimate for the bill as ordered reported by the House Committee on Education and Labor on February 4, 2010 […]
- Policies for Increasing Economic Growth and Employment in the Short TermTestimony prepared for and provided to the Joint Economic Committee, U.S. Congress, for a hearing that was postponed […]
- The Budget and Economic OutlookCBO Director Doug Elmendorf's presentation at Morehouse College […]
- H.R. 2847, Hiring Incentives to Restore Employment Act
A Tax Break for the Self Employed
Under the general IRS rules & regulations Health Care insurance & healthcare costs are not able to be deducted on the Federal schedule C. However, there a number of statues that supersede the general rules.
When the spouse of a self employed person is also an employee of the sole proprietorship the sole proprietor can deduct all reasonable health care insurance & out of pocket medical expenses on the Federal Schedule C. Please see IRS Code Section 105.
This is a great benefit for the sole proprietor. Not only does it lower federal income taxes at a greater rate it also reduces the amount of social security & medicare taxes paid.
It is important that the spouse be a “bona fide” employee. The spouse can only be a part time worker. The spouse cannot be classified as the owner.
You should keep the necessary documentation to support your claim as an employed spouse. For example, you should keep a log of hours worked, duties, compensation and any other important information.
The spouse must be treated identical to the owner regarding the medical plan eligibility requirements or any deduction would be discriminatory and non-deductible.