Health savings accounts can be used as retirement savings vehicles if contributions are held in a growth asset class and aren't used to cover current expenses. This approach differs from the common strategy of holding the funds in money market accounts. HSAs can be combined with high-deductible health plans to maximize the plans' value, but clients should be aware that this strategy has some Medicare and Social Security implications.
Most employers with 200 or more employees indicated they intend to continue offering health benefits, but they are likely to shift cost increases to employees and might move to consumer-directed, high-deductible plans coupled with a health savings account, a Midwest Business Group on Health survey found.
Taxpayers need to retain documentation that their tax returns were sent to the Internal Revenue Service in the event that the IRS claims it did not receive them, writes attorney Maryam K. Ansari. The 1st U.S. Circuit Court of Appeals recently ruled that a business could be penalized for not filing a tax returned unless they could offer proof they had mailed the return. To avoid a mishap, keep receipts from the post office or send your return as certified or registered mail, advises Ansari.
You can help to keep the IRS off your back by making sure that your return doesn't include any expenses that seem abnormally high, writes accountant Mark Kohler. Also, be sure to file all of your tax returns and to respond quickly to IRS requests, he writes.
Everywhere you go, you should be asking the question "What can I write off my taxes?" writes accountant Mark J. Kohler. He recommends thinking "above the line" to consider all personal expenses with a business purpose and keeping meticulous records and going over them with a CPA at the end of the year.