This text is posted with permission from our associate Solo Well being Collective. Study extra about Solo at: https://freelancersunion.org/solo
Freelancers and unbiased contractors typically battle to search out an inexpensive, high-quality well being plan. Conventional plans may be costly, lack flexibility, or provide minimal advantages for self-employed people. Freelancers Union associate, Solo Well being Collective, is a singular well being plan designed particularly for freelancers, solopreneurs, and small enterprise homeowners. Right here’s the way it can present vital tax benefits—and why it’s a fantastic choice for unbiased professionals.
Tax Benefits for Freelancers
One of many largest advantages of enrolling in Solo Well being Collective is the potential for vital tax financial savings. Right here’s how:
Deductible Well being Insurance coverage Premium
As a self-employed individual, your medical insurance premiums are usually tax-deductible as a enterprise expense. This implies you may decrease your taxable earnings whereas sustaining mandatory protection.
Well being Financial savings Account (HSA) Contribution
Solo Well being Collective presents HSA-compatible high-deductible well being plans (HDHPs). HSAs present highly effective tax advantages:
- Contributions are tax-deductible (or pre-tax if made via payroll).
- Funds develop tax-free via investments.
- Withdrawals for certified medical bills are tax-free, offering long-term saving
Deductible Medical Bills
Many freelancers don’t understand that out-of-pocket medical bills—together with deductibles, copays, and sure procedures—may additionally be deductible in the event that they exceed a proportion of your adjusted gross earnings (AGI).
***all the time seek the advice of a tax skilled to substantiate eligibility and compliance primarily based in your earnings, state, and many others.
Tailor-made for Impartial Professionals
Not like conventional insurance coverage that cater to bigger teams, Solo Well being Collective is structured to fulfill the wants of self-employed people. It operates as a self-funded well being plan via a captive insurance coverage mannequin, which suggests members achieve entry to group buying energy, decrease prices, and strong advantages.
Key benefits embody:
- Reasonably priced, predictable pricing in comparison with different conventional well being plans
- Entry to a nationwide PPO community via MultiPlan PHCS, making certain high quality care wherever within the U.S.
- HSA-compatible plan choices, permitting members to avoid wasting pre-tax {dollars} for medical bills.
Freelancers face distinctive challenges relating to well being protection, however Solo Well being Collective presents an revolutionary answer that mixes affordability, flexibility, and tax benefits. By organising your plan with Solo, you not solely achieve entry to a high-quality healthcare plan but in addition unlock potential tax financial savings that may make an actual impression in your monetary well-being.
Need to study extra? Go to Solo Well being Collective’s web page to discover your choices or schedule a one-on-one session with their assist workforce to reply your questions and study extra in regards to the plan.