Tuesday, November 16, 2010

Is it better to have your health insurance deductions taken out on a pre-tax or post-tax basis

Is it better to have your health insurance deductions taken out on a pre-tax or post-tax basis?
I am in a low tax bracket (15% I think) and my company offers the choice of having your health insurance payments taken out on a pre- or post-tax basis. I've heard that you pay less money in taxes if you get it taken out on a pre-tax basis, but if you get it taken out on a post-tax basis you get tax-cuts at the end of the year. Is there any truth behind this? Please help. I'm confused.
United States - 5 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Pre tax without question...no matter what your tax bracket. The "tax -cuts" at the end of the year are only those you enjoyed by choosing the pre-tax method only you wait a year to realize them. You gain more by choosing pre tax...for everyone, every time.
2 :
For most people the pre-tax deduction is the best. You can deduct the post-tax deduction - but only if you itemize your deductions, and only after you subtract 7.5% of your income from the total amount you spent on medical bills, prescriptions and health insurance.
3 :
Pretax is better if that's available to you.
4 :
I work in the tax industry. I have a VERY few coworkers who are opting for post-tax deductions. All are within 3 years of retirement on a pension system that's based on the highest 3 years of salary. All three hope that what they lose in taxes now, they will get back in higher pension benefits later.
5 :
Perhaps You may google it first ,however, if you like some direct resource ,here might be your choosing.http://health-insurance.expert-tip.info/health-insurance-for-free.htm

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