True or False? The employee and employer contributions for health coverage are tax deductible.
True – mostly.
When filing taxes, an individual may be able to take a deduction for purchasing health insurance (if it exceeds 7.5% of adjustable gross income).
An employer is permitted to deduct the cost of providing health insurance as a routine business expense; however, no deduction is permitted for Affordable Care Act (ACA) penalty fees.
For more information on the ACA, visit our website or contact your representative.