Q. I know you can write off if you are self employed, but what if you work for a company and are required to use your own car and receive a mileage reimbursement?
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A. You cannot take a dollar for dollar deduction for your insurance.
You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.
Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.
In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.
All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.
You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.
Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.
In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.
All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.
If my employer doesn't offer a health plan, can I write off premiums for my independent health insurance?
Q. I've read that I can only write off those that are in excess of 7.5% of my income. The reason I question this is because my previous job offered health insurance which I contributed to and those payments were always made on a pre-tax basis.
So why would it be tax free if I go through an employer, but not if I buy my own plan?
So why would it be tax free if I go through an employer, but not if I buy my own plan?
A. That's the way IRS regulations are. You can write off the premiums on a group policy or if you are self employeed. Otherwise, you are subject to the 7.5% rule.
When does an insurance company writes off a car as a total loss?
Q. Does anyone know when an insurance company writes off a car as a total loss?
Thank you.
Thank you.
A. When it would more economical to scrap it than to repair it.
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When is it okay to write off a balance on a medical claim?
Q. Scenario 1: Medicare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (United Healthcare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 2: United Healthcare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Medicare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 3: Cigna primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Aetna) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 2: United Healthcare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Medicare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 3: Cigna primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Aetna) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
A. Is your physician contracted with the insurance's listed above? If they are a contracted provider they MUST bill the patient for the balances. After 1 bill has been sent and no response the balances maybe discounted per your office policy, but an 'attempt' must be made. This is normally stated in the contract that your physician signed with the insurance companies to become participating.
Medicare has become increasingly strict on this in recent years. I have audited accounts regarding this and Medicare actually removed the doctors ability to bill them (participation revoked for a certain amount of time) for not abiding by the contracted terms. I always suggest that doctors include a section in their office policy's that state you will bill once and if no response with a balance under $XX.XX($5.00 or $10.00 your office picks) then the balance is written off to a specific account that you can track (ie:low balance write off-contracted vs non contracted write off) and if need be, you can run a report for various insurances if they request.
Medicare has become increasingly strict on this in recent years. I have audited accounts regarding this and Medicare actually removed the doctors ability to bill them (participation revoked for a certain amount of time) for not abiding by the contracted terms. I always suggest that doctors include a section in their office policy's that state you will bill once and if no response with a balance under $XX.XX($5.00 or $10.00 your office picks) then the balance is written off to a specific account that you can track (ie:low balance write off-contracted vs non contracted write off) and if need be, you can run a report for various insurances if they request.
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