Use spending accounts to save on dependent expenses
Article Abstract:
The definition of dependency used under health and dependent care flexible spending accounts is broader than that used in determining income tax exemptions. Income exclusions can be claimed for dependent parents and family friends and not only for members of the taxpayer's nuclear family. Non-relatives and distant relatives must live with the taxpayer and must receive at least 50% of their support from the taxpayer. If support of less than 50% is received from several sources, the individuals can agree to have one person claim the dependency deduction.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1995
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Long-term care insurance, medical savings accounts, and risk/return potential in general account life insurance products
Article Abstract:
Federal tax legislation and other factors have created or impacted planning in the areas of long-term care insurance, general account life insurance, and medical savings accounts. Obtaining the tax benefits of qualified long-term care insurance is difficult and has resulted in that insurance being termed a failure from a consumer perspective. General account life insurance contains risks against which potential insureds should be warned. Medical savings accounts are limited in accessibility but do provide tangible benefits for those who qualify.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1998
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The federal income taxation of medical savings accounts
Article Abstract:
IRC section 220 and related Health Insurance Portability and Accountability Act provisions have established Medical Savings Accounts (MSAs) to provide those who are self-employed or employed in a small business with a way to save for medical expenses. The MSAs are trusts that are paired with high-deductible health insurance, and the MSA funds are intended to cover the deductible. MSAs are tax-favored and function much like individual retirement accounts.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1997
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