New Tax Break For Self-employed And Small-business Owners Only Available For 2010 Returns

March 8, 2011 - PRLog -- One of the biggest tax breaks relating to health care is relatively unknown and it’s only available for 2010 returns. The change was signed into law last September as part of the Small Business Jobs Act of 2010. It benefits the self-employed and small-business owners (companies with a maximum of 25 employees).

Under Sect. 2042, the law allows self-employed and small business owners to deduct the cost of their health insurance as well as the cost of coverage for their family when figuring 2010 self-employment tax.

The deduction is not available to those who are eligible to join an employer-subsidized health plan through an employer or a spouse’s employer. The amount of the deduction is limited by self-employment net profits.

Without the negotiating power of large employers, small businesses remain the weakest link in employer-based health coverage. Another option for self-employed and small business owners also provides tax benefits and low-cost health insurance. That option combines high-deductible health plans with Health Savings Accounts.

By the end of last year, Health Savings Account (HSA) deposits had surpassed the $10 billion mark, according to a survey by investment firm Devenir. The number of Health Savings Accounts grew to 6.2 million reflecting a 27-percent increase over a one-year period and total holdings rose to almost $10.1 billion. Overall, that was indicative of a 41-percent increase in assets and an average account balance increase of 11 percent.

eTXHealthInsurance provides information explaining HSA advantages as well as assistance in comparing HSA plan options at http://www.eTXHealthInsurance.com/health-savings-accounts....

According to the President of eTXHealthInsurance, Wiley Long, a Texas Health Savings Account is the only fiscal investment that allows a tax deduction as well as tax-deductible withdrawals.

Having invested in his own HSA, Long says, “Health Savings Accounts help you save on insurance premiums and income taxes. Your premiums are typically 30- to 40-percent lower than on co-pay plans. Combined with tax-free interest earnings and tax deductions for health care expenses, the reduced premiums could possibly save you $5,000 a year.”

Health Savings Accounts are just one of several options available to help Texas residents and small business owners manage their health care coverage costs. Other strategies are explained at http://www.eTXHealthInsurance.com/how-to-guide.htm.

Confidential consultations may also be scheduled by calling eTXHealthInsurance at 1-866-585-7664 from 9 AM through 11 PM Eastern. As the leading specialist in online individual, family and small business health plans for Texas, http://www.eTXHealthInsurance.com provides instant quotes, downloadable insurance plan brochures and easy online applications.

For additional information and news about Texas health insurance options, visit http://www.eTXHealthInsurance.com and the Texas Health Insurance News Blog at http://www.eTXHealthInsurance.com/txhealthnews.

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About eTXHealthInsurance:

As the leading online specialist in health insurance coverage options for Texas, eTXHealthInsurance provides information about and access to family, individual and small business health plans.

Our comprehensive website (http://www.eTXHealthInsurance.com/) provides instant quotes and easy online applications for more than 300 health plans from a variety of insurance companies with the highest ratings for financial soundness from independent rating organizations.

In addition to comprehensive information on health insurance plans, powerful online tools to cut the cost of health care are also provided at http://www.eTXHealthInsurance.com/additional-benefits.htm.

Immediate access to licensed Texas health insurance professionals is also available at 1-866-585-7664 from 9 AM through 11 PM Eastern.