Is Health Insurance Exempt From FICA?

Is health insurance exempt from the FICA tax? If you are a taxpayer and if you have any insurance at all, it is probably not. This article will explain what is FICA, the FICA tax that applies to all health insurance and how the federal government is able to collect FICA tax on premiums paid on health insurance plans.

The FICA tax is levied based on the premium payments made on the plan and this includes deductibles, co-pays and any other co-payments that are paid for. All policies are designed to pay for services provided but when they come time to pay for them, some people may be tempted to avoid the taxes.

FICA is basically a tax that is levied and collected by the Internal Revenue Service. It is not a tax that is paid on individual premiums. If you are going to get a health insurance plan from any employer or agency, you are obligated to pay the FICA tax. If you have a health insurance plan through your parents, you must pay the FICA tax.

So, does anyone ever ask if their health insurance is covered by FICA? The answer is no, but sometimes individuals think that they are paying the taxes when they do not. If you have a health insurance plan but you find out that you are not covered under FICA, you should contact your employer to see if they have any tax breaks available for you.

You can also look into getting the insurance from another agency that does not charge the FICA tax. You should however be very wary of these agencies since they may not pay out in benefits when you need them most. Also, be sure that you do not sign any documents relating to the policy with the agency. This is important because some agents will claim to give you coverage that you do not actually have by claiming that it is a "guaranteed" issue under the policy.

If you are going to use an agent that provides coverage that is not under FICA, make sure that you read and understand the terms of the contract very well before signing it. Many of these agents will add penalties to the policy if you are unable to pay your premiums or you cannot make your payments on time. Be careful when you are dealing with these types of agents as they may try to get more money out of you than is necessary.

If you are having trouble finding a health insurance plan that does not include a health insurance tax, consider a "managed care" plan. A managed care plan pays out a percentage of your medical needs when you need them and gives you a chance to set your own payment amount.

gimgoi.com  what type of health insurance you decide to purchase, remember that it is not exempt from FICA and is a tax that is being charged to you every month. If you think you may not be able to pay all of your premiums, you should talk with your employer or agent and see if you can work out a payment plan that will help you to afford the premiums and also, help you to keep the plan affordable. In addition, you can check to see if your employer has any tax breaks that could help you afford the premiums.

Remember that you can find many different health insurance plans on the Internet. Make sure that you do some research on each plan before purchasing any. If you can find a plan that has a better rate, you will be better off and if you can find a plan that has a lower rate, you will save money.

One way that you can protect yourself from having to pay FICA on your health insurance is by using the internet. Use an insurance comparison website to get a list of different health insurance companies and see which ones have a low rate on health insurance. You may even be able to get an online quote.

Remember that if you are not eligible for a tax break, the only time you will have to worry about a tax credit against your health insurance premium is if the plan itself is a low rate plan. So, if you have any doubts about buying health insurance that is not exempt from FICA, you may want to call your employer or agent for more information and find out if they can give you a break on your premiums.