Test Your ACA Knowledge – Question 1

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Posted: May 27, 2021 by Staff Writer

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.

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