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taxes Archives - Harrington Insurance Agency

Taxes and Insurance – How they related

By | General Insurance

Don’t Wait Til the Last Minute

Filling out your tax paperwork may be the last thing on your mind right now. It’s only February; we’ve got like two months until tax season, right? Yes, you have until April 15th to get your tax return filed. But getting everything in order now can really help you be sure you are getting the best return you possibly can.

When you wait until the last minute to file, you might miss some of the deductions you could be taking. Sometimes people end up skipping through the form just to get it done on time. They are more afraid of paying a late filing charge than taking a few extra minutes to get it done correctly. Now that you have some time, start finding all those receipts you meant to put aside.

Can Insurance Be a Deductible?

Also, talk with some professionals to see what might be deductible and what might not. One person who might be able to help you is your insurance agent. Some of your policies may affect your taxes. You may be able to deduct policy premiums if you paid them certain ways last year. In some cases, any benefits you received form your policies may not be considered taxable income. Without knowing about it yourself, you may miss out on some deductions.

You may also find that taking your time with your tax returns feels less stressful than rushing around a few days before April 15th. Having a chance to actually review your finances and properly file your return can make you feel much more confident about it. You will have the time to find the answers you need before rushing to file.

Doing your taxes does not have to be a maddening experience. Take your time and feel confident in your return this year by going over your forms completely and thoroughly.

Business Insurance Harrington Insurance Agency, San Jose CA

Time for Taxes – Tips from Harrington Insurance

By | General Insurance

How Can Insurance Help with Taxes?

With tax time upon us, the hunt for deductions is in full swing. This is especially the case for those who are self-employed and run their own businesses. However, the murky nature of tax laws often obscures the fact that a wide variety of expenditures may be deductible. One of the more overlooked sources of tax deductions is money spent on various insurance policies. While these aren’t tax deductible for most people, those who are self-employed may be able to do so. One example of such a deduction is money spent on the premiums for short- or long-term disability insurance. The benefit from such a policy may cover you, your spouse, and any dependents. Any children under the age of 27 may also be covered, even if they are not a dependent. All the premiums paid for the maintenance of such a policy can be deducted as a business expense.

However, if the deduction is taken, any benefit paid through the policy will be considered ordinary taxable income. If you do not take the deduction, then benefits will not be taxed. Obviously, you have to take into account the sort of work you do, your health, and your family’s circumstances. There are a number of similar deductions that you may be eligible for, including premiums paid for credit insurance, liability and malpractice insurance, as well as policies that cover damages to your business resulting from fire, storms, accidents, theft, and so on.

Please speak to a tax adviser before you consider taking such a deduction, to assure that you are actually eligible for it, and that it is advisable for you to do so.