BASE® Statement Regarding Coronavirus: BASE® Committed to Service Amidst Coronavirus Social Distancing ‑ UPDATED 3.19.2020

Save Thousands During Tax Season

Another tax season has come and gone.  BASE® clients saved an average of $5,000 in tax savings with the BASE® Section 105 HRA.  While many business owners missed out on this savings on health care spending.

An HRA allows self-employed business owners to deduct up-to 100% of their health costs as a business expense.  This could include insurance premiums for health, long-term care, vision, dental, as well as out-of-pocket medical expenses.

The BASE® Section 105 Health Reimbursement Arrangement allows small businesses, classified as sole proprietors, partnerships, or C or S Corporations, to reimburse their employees for qualified medical expenses, tax-free.  This plan is applicable to small business owners that can legitimately hire their spouse.

Mandy S., a BASE® HRA client since 2008 knows how beneficial having an HRA in a business is.  “The BASE® HRA is a simple way to receive tax savings. It is especially reassuring at tax season to know I am being proactive to minimize our tax exposure without too much trouble. It’s really not hard to keep track of medical expenses with the BASE® website, which is quick and easy-to-use. When I call with a question I always get professional, friendly, and constructive assistance.  The annual savings always exceeds the effort involved!”

Without this plan in place, small businesses only take the standard personal deduction for health insurance costs when filing taxes.  Business owners can deduct only a portion of their health care expenses, which is often less than half of the typical family’s expenditures.  However, if the business has an HRA in place, they have the ability to take these expenses as a business deduction, which offers savings on self-employment tax in addition to income tax.

The BASE® HRA gives businesses a simple, effective solution to deal with the cost of health care and save thousands of dollars in tax savings each year.  For more information on the BASE® Section 105 Health Reimbursement Arrangement, call 1.888.386.9680. 

Comments are closed