HEALTH CARE COSTS --BUT THIS TIME IT'S GOOD NEWS!

When Washington "fixes" our health care problem, they
will need a plan to pay for it, right? They are looking at
reducing or taking away the itemized deduction for health care
costs you pay out of your own pocket.

Restrictions already are tough. In order to get any deduction
for any health costs, most taxpayers must (a) file an itemized tax return -
i.e., a Schedule A, AND (b) even then, you can deduct only the amount
over and above 7.5% of your taxable income.

Example...
If you make $40,000 in taxable income, your first $3,000 (7.5% of $40,000)
worth of out-of-pocket health costs still are your problem.
You can deduct only the amount above that threshold.
That's for MOST taxpayers -- but NOT YOU.

If you have a home-based business, you can use the
Tax Code "Section 105 Plan," to move deductions to your
Schedule C as a Business expense, not Schedule A as a Personal deduction.

See Ch. 7 of "Home Business Tax Savings MADE EASY!" available at http://www.homebusinesstaxsavings.com/ .

MORE ON HEALTH CARE COSTS --BUT THIS TIME IT'S GOOD NEWS!
The IRS has just sent an Internal Memo to its field units (read: auditors)
telling them it's okay if a self-employed person takes
money from their 401(k) to pay for Health Insurance,
even if they are not yet 50-½ yrs old --
IF they meet the following requirement...

Although self-employed people do not qualify for unemployment benefits,
if they can show that they would have qualified for benefits for at least
12 consecutive weeks, if they had been an employee, they can use their
401(k) money to pay for Health Insurance coverage, skirting the 10%
penalty usually assessed on early withdraws.